ECM Weekly (19 Jan 2020) - Mr. DIY, UTI AMC, Sinopharm, Sunac, Jinxin, China Lit

This week we evaluated our 2019 performance which marked our first full year of operations as an Independent Research Company.

• Aequitas 2019 IPOs and Placements Performance - Things We Got Right/Wrong and Things We Plan to Do.

We also shared more insights on IPO data that we have collected and analyzed - this time on institutional and retail coverage impact on deal performance.

• 2019 Hong Kong IPO Analytics: How Did Insti and Retail Coverage Impact Deal Performance

And finally, we look forward with the pipeline of IPOs that we are tracking/expecting to list this year. Feel free to message any of us for more details/thoughts on some of the upcoming deals.

• Aequitas 2020 Asia IPO Pipeline - Busy Year Ahead

This week was deals galore for the Hong Kong market as we had, at one point, three deals in one night. This was probably off the back of strong markets across geographies and many companies/shareholders taking the chance to sell into strength. Most of the deals have done well with the exception of China Literature (772 HK) which has struggled to stay above deal price. Tongcheng-Elong Holdings Ltd (780 HK), Xiabuxiabu Catering Mgt Chn Hldgs (520 HK), and Sinopharm Group Co H (1099 HK), which were all launched on Thursday evening are all holding up well as of Friday trading.

• China Literature Placement - Worth a Bet with Overhang Removed
• Seazen (新城控股) Placement - An Opportunistic Raise Little Impact on Leverage
• Sinopharm (国医控股) Placement - Unattractive but Inexpensive
• Jinxin Fertility (锦欣生殖) Placement - A Good Point of Entry
• Shimao (世茂房地产) Placement - Another Opportunistic Offering but Momentum Bodes Well

Back to IPOs, Jiumaojiu (9922 HK)'s strong debut probably laid the foundation for more IPOs to come. There had already been 17 IPOs in Hong Kong so far (including the ones below US$100m) and there will likely be more coming up including Megvii Technology (1737211D HK) which was said to be aiming to launch after Chinese New Year.

In Thailand, Central Retail (192323Z TB) will be opening its books on Monday and it is expected to raise up to US$2.6bn (post-shoe) via selling a mix of primary and secondary shares. We will look to share our thoughts once more details are available.

In Singapore, UK-focused Elite Commercial REIT has filed its prospectus with MAS. It will also be the first SGX-listed REIT to be denominated in British pounds. Cornerstone investors are private banking clients of UBS, Bank of Singapore and CIMB Bank.