ECM Weekly (18 April 2019) - Duiba Group, MabPharm, Huami, Cofco Meat, Innovent, Times China

The short week did little to slow down placements in Hong Kong.

Cofco Meat (1610 HK) and Innovent Biologics Inc (1801 HK) shares were sold by investors in the companies but the two had polarizing post-deal performance. Cofco Meat's share price held up well even after its settlement today on the back of strong pork prices while Innovent Bio's share price broke through deal price on the first day as three sellers came onto the market to sell just as lock-up expire. The eagerness to sell Innovent's shares is probably the reason for its poor performance since there are about US$3.1bn worth of shares unlocked.

As for upcoming IPOs in Hong Kong, Mulsanne Group's IPO has been approved by HKEX and the PHIP has been filed. Sumeet Singh had already analyzed the company earlier in Alpha Smart - Pre-IPO - PE Investors Recovered 56% of Their Cost in Two Years but Left It in Debt. There had also been news reporting that Citi and BAML have been added as advisoers to AB Inbev's Asia IPO. For early thoughts on the company:

• Ab InBev Asia Pre-IPO - Quick Note - More like CR Beer Rather than Tsingtao
• Ab InBev Asia Pre-IPO - A Brief History of the Asia Pacific Operations - Eeking Out Growth in China

In India, Sterling and Wilson has already started its investor education for its IPO. We are probably going to see more filings and IPO launch in India after the decent performance by the two IPOs this week, Metropolis Health Services Limited (METROHL IN) and Polycab India (POLYCAB IN).

In Japan, Japan Post Insurance (7181 JP)'s mega placement had been a disappointment so far partly due to its strong share price rally post-announcement we saw last week. Sumeet Singh had mentioned in his note that the deal has to price at a discount to its undisturbed price to warrant a buy for the placement. Neverthless, there could still be a trade in the Japan Post Holdings (6178 JP) and Japan Post Bank (7182 JP) as explained in Japan Post Holdings and Japan Post Bank - Early Thoughts on a Choice of Two Trades.