ECM Weekly (19 July 2020) - HK IPO Analytics 1H2020, Shimao Services, AyalaLand REIT, Li Auto

Hong Kong ECM activity will probably go back into a lull, at least for the time being so Ke Yan, CFA, FRM took the time to analyze deal performance in Hong Kong in 1H 2020 split by different categories.

• HK IPO Analytics 1H2020: Highlight of Brokers' and Sectors' Performance, and Insti Book Color

This week's IPOs' performance weren't nearly as impressive as last week. Out of the five debuts this week, only Archosaur Games (9990 HK) and Cathay Media and Education (1981 HK) did well, both closing about 60+% above their respective IPO prices.

• Archosaur Games (祖龙娱乐) Trading Update - Not Much Left for Non-Cornerstone Insti Investors
• Cathay Media (华夏视听) IPO Trading: High Share Concentration
• China Bohai Bank (渤海银行) Trading Update - Lackluster Demand and Highly Concentrated Shareholding
• Ganglong China Property IPO Trading - Tepid Demand, Concentrated Shareholding
• Shandong Fengxiang IPO Trading - Lack of Over-Allocation Won't Help Post Deal Performance

As things are slowing down, we took the time to initiate coverage on upcoming HK IPOs. Also, in the U.S., Li Auto Inc. (LI US) filed for IPO this week with a placeholder offering amount of US$100m. News reports have said that the company is targeting to raise about US$500m to US$1bn. We have already covered the IPO in the overview note and followed by an on-the-ground research note by Ming Lu.

• Li Auto (理想汽车): Visit Li Auto Store and Find Out License Game
• Li Auto (理想汽车) Pre-IPO - Taking the Long Way Around
• Shimao Services (世茂服务) Pre-IPO - Community VAS Segment Is the Star

In the Philippines, AyalaLand REIT (AREIT PM) launched its IPO, on its way to be the first REIT listing in the country. It will be one to keep an eye on as it will set the tone for subsequent REIT listings. The other REITs that were earlier reported to be coming to market will be from Doubledragon Properties (DD PM) and SM Land.

• AREIT Pre-IPO - First Philippines REIT Listing Comes with Its Peculiarities
• AREIT IPO - Looks Sustainable at the Low-End

For placements, there was only a primary and secondary selldown placement from Jiumaojiu (9922 HK) just as its IPO lock-up expired. We also took a look at how Wuxi Biologics (Cayman) Inc (2269 HK)'s past selldowns/equity raise have done to use as a guide for its next placement.

Last, but not least, India banks' placement continue and this time round, Yes Bank (YES IN) is looking to double its share count with a massive follow-on public offering.

• Yes Bank Placement/FPO - Anchor Book Participants Are the Key
• Wuxi Biologics - Recap/Learnings from past Placements
• Jiumaojiu Placement - Right at Lock-Up Expiry