Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
It's another week of regulatory crackdown in China. This time, Meituan’s share price declined 21% since the start of the week after China issued regulations to tighten oversight of the food delivery sector by asking food delivery operators to respect the rights of delivery staff and to ensure that delivery workers earn at least the local minimum income.
Then regulators published a statement on Friday afternoon stating that they will look to step up oversight on the property industry and specifically, poor practices like property management fees not being explicitly revealed, or more fees collected than originally stated, will be banned.
In the U.S, it was reported that the SEC has stopped processing registrations of U.S. IPOs and other sales of securities by Chinese companies. This came after CNBC reported on Thursday that China will continue to allow Chinese companies to go public in the U.S. as long as they meet listing requirements, according to people familiar with the matter.
For ongoing IPO coverage, in Hong Kong, we compared Cloud Village (NetEase Music) to peers, mainly Tencent Music, and discussed the impact of the recent regulatory action on Tencent Music. The company is planning to start pre-marketing next week.
Cloud Village (NetEase Music) Pre-IPO - Initial Thoughts on Valuation
Cloud Village (NetEase Music) Pre-IPO - Tencent Music Peer Comp, Regulatory Impact
Cloud Village (NetEase Music) Pre-IPO - Was in the slow stream, playing catch-up.
Ke Yan continued his coverage of Acotec Scientific with a discussion of assumptions and valuation.
In the U.S, PropertyGuru and Bridgetown 2 announced that they have entered into a business combination agreement which will see PropertyGuru go public at an EV of US$1.35bn and equity value of US$1.78bn.
For A/H-share listings, we took an early look at Shenzhen-listed Asymchem Labs, which is aiming to raise US$1 - 1.5bn. We also shared our thoughts on Li Auto’s Hong Kong dual primary listing which was approved earlier this week and was looking to raise up to US$1.5bn.
Asymchem Labs A/H Listing Early Look - Fast Growing, Relatively Insulated
Li Auto HK Listing - Needs to Be Done at Discount Given XPeng’s Poor Debut
In India, Devyani International’s IPO terms were launched. The company is looking to raise US$242m and anchor books will open on 3rd August while the bookbuild for other investors will be open from 4th - 6th August. We have already looked at valuation this week in:
In the Philippines, Del Monte Philippines ended its pre-marketing this week. We looked at peer comparison and shared our thoughts on assumptions and valuation. We also looked at potential proxy trade via Del Monte Pacific.
Del Monte Philippines Pre-IPO - Peers, Assumptions, Valuations and Deal Dynamics
Del Monte Pacific HoldCo Trade Update - A Better Play for Del Monte PH IPO
For placements this week, we covered PointsBet 1 for 9 accelerated, pro rata renouncement entitlement offer and institutional placement that was expected to raise about A$400m. Shares will resume trading on Monday with the company reporting that its institutional offer was well supported by new and existing local and international institutional investors.
Our overall accuracy rate is 73.8% for IPOs and 67.4% for Placements
(Performance measurement criteria is explained at the end of the note)
Hong Kong/China
US/China ADRs
India
Japan/Korea
Others
Join 55,000+ investors, including top global asset managers overseeing $13+ trillion.
Upgrade later to our paid plans for full-access.