ECM Weekly (17 January 2021) - RLX Tech, Kuaishou, PTT Retail, MicroPort CardioFlow, New Horizon

Hong Kong ECM ended the week on a high note with Yidu Tech Inc (2158 HK)'s spectacular trading. Its shares closed 148% higher. In contrast, Roiserv Lifestyle Services (2146 HK) despite the favorable industry backdrop from policies published a while back, traded about 8% below its IPO price.

• Roiserv Lifestyle (荣万家生活服务) IPO Trading - Weaker Demand than Sino-Ocean Svcs
• Yidu Tech (医渡云) IPO Trading - Strong Demand Points to Good Debut

Aside from that, there had been a strong flow of placements in Hong Kong which we have covered most of them. Notably, Morgan Stanley has been sole bookrunners for majority of these deals. Placements this week:

• Ocumension Theraputics Placement - IPO Was Hot, Deal Should Be Supported Despite Lock-Up Expiry
• ESR Cayman Placement - Past Deals Have Generally Done Well
• GCL Poly Energy Holdings Placement - Won't Solve Its Debt Problems
• Innovent Biologics Placement - Momentum Is Very Strong but past Deals Have Been Mixed
• Man Wah Placement - Riding High on Planned Store Expansion

Momentum still looks strong as Beijing Kuaishou Technology Co Ltd (1496219D CH) just won its Hong Kong approval and will look to premarket its IPO next week. We are also hearing that Basecare and MicroPort CardioFlow (1844972D HK) will be starting premarketing too whereas New Horizon Health (NHH HK) was said to be seeking approval this week but we have yet hear anything on it.

• Kuaishou Technology Pre-IPO - Peer Comparison and Thoughts on Valuation
• MicroPort Cardioflow (微创心通) Pre-IPO: Strong Sales Ramp-Up Despite Being Late in Market
• New Horizon Health (诺辉健康) Pre-IPO: Comparison with Exact Sciences

In the US, RLX Technology Inc (RLX US) will likely open books last night(15th January) for its US$1.2bn IPO. This week, we also took a look at electronic cigarette store in Shanghai and compared the company to listed peers.

• RLX Technology Pre-IPO (RLX): Store Visits to Relx and Its Competitors
• RLX Technology Pre-IPO - Peer Comparison and Valuation
• RLX Technology IPO - Valuation Has More than Doubled in Two Months

We are also hearing that Cloopen, a Chinese cloud communications service provider, is planning to premarket its IPO next week for a US$300 - 500m IPO with GS and Citi as bookrunners.

Back closer to home, in Thailand, PTT Oil and Retail (OR TB) announced its IPO terms and revealed a long list of local and reputable international institutional investors. We take a look at competitive landscape, peers, and valuation.

• PTT Oil and Retail IPO - Updated Financials and Competitive Landscape
• PTT Oil and Retail IPO - Thoughts on Valuation
• PTT Oil and Retail IPO - Attractive Valuation with Favorable Deal Dynamics (Index Inclusion)

In India, Indian Railway Finance Corporation (IRFC) and Indigo Paints announced their respective IPO price range and will start bookbuild this coming Monday, we will follow-up with updates in the coming week.

• Indian Railway Finance Pre-IPO - Low Risk, Low Margin Business