ECM Weekly (20 December 2020) - Yidu Tech, Home First Finance, IQiyi, Xinyi Solar, IDP Education

Equity capital markets around the globe are finally cooling as we head into the festive season. This will be our last ECM weekly note for the year. So here's wishing all readers early Merry Christmas and Happy New Year!

Hong Kong IPO debuts this week were mostly good. Out of the four, only Sino-Ocean Service (6677 HK) struggled to trade above its IPO price, in contrast with Vesync (2148 HK)'s +59% first day debut. Netjoy (2131 HK) traded well, closing 10% higher on Friday despite tepid grey market trading. Blue Moon Group Holdings (6993 HK) debuted with about 10+% gain on first day but has since then traded down and it is just 7% above IPO price at the end of the week.

• Vesync IPO Trading - Priced at Top-End but Still Reasonable
• Sino-Ocean Services (远洋服务) IPO Trading - Tepid Demand Compared to Recent IPOs
• Blue Moon Group IPO Trading - Too Expensive for Our Liking but Retail Traders Seem to Like It
• Netjoy (云想科技) IPO Trading: Fairly Valued
• Jacobio (加科思药业) IPO Trading: Not for the Impatient

Yidu Tech Inc (YID HK) may still go for a late December IPO debut as we heard that the company was premarketing last week and could launch its bookbuild in the coming week. We covered the IPO in:

• Yidu Tech (医渡云) Pre-IPO - Forecast and Peer Valuation
• Yidu Tech (医渡云) Pre-IPO - Big Buzzwords

In India, ECM activity is picking up as we head into 2021. We've had a handful of placements and listing debuts. Burger King India (BKI IN) more than doubled this week whereas Embassy Office Parks REIT (EMBASSY IN) raised money to acquire about US$1.3bn worth of assets. Apollo Hospitals Enterprise (APHS IN) is also looking to raise about US$200m in 1Q21. Sumeet Singh also wrote a note on updates from Home First Finance (HFF IN)'s updated DHRP.

• Home First Finance Pre-IPO - Earnings Not Showing the COVID Strain but Other Metrics Are
• Burger King India IPO Trading - Can Probably Double from IPO Price
• Embassy Office Parks REIT Placement - Large but Very Well Flagged Deal
• Apollo Hospital Placement/QIP Early Look - This Time It's Different

Placements in other markets were a bit of a mixed bag. Xinyi Solar Holdings (968 HK) traded incredibly well, closing 24% above its placement price on Friday whereas iQIYI Inc (IQ US)'s share price slumped after the announcement of its follow-on offering. The deal was priced at 21% discount to undisturbed price and it is still struggling to hold above.

• IQiyi Placement - An Ex-Growth Netflix - Needs a Deep Deep Discount
• Xinyi Solar Placement - Ultra-Strong Momentum but Its Highly Volatile

Sumeet Singh also revisited IDP Education (IEL AU)'s potential blocks to come due lock up expiry that stemmed from selldown in June. Lock up expires on 24th of December.

• IDP Education Placement Early Look - A Big Block/Whole Lot of Blocks Could Be Coming