bullish

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

359 Views20 Dec 2020 10:10
SUMMARY

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.


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.

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:

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.

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.

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.

Accuracy Rate:

Our overall accuracy rate is 73.5% for IPOs and 66.5% for Placements

(Performance measurement criteria is explained at the end of the note)

New IPO filings this week

  • Zhaoke Ophthalmology (Hong Kong, >US$100m)
  • U Life Services (Hong Kong, potential US$100m)
Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

News on Upcoming IPOs

Analysis on Upcoming IPOs

NameInsight
Hong Kong
ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)

ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok

ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)

ByteDance

ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H?

ByteDance

ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants

ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok

ByteDance

ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India

ByteDance

ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges

Dida

Dida Pre-IPO - Making Hay While Big Brother Retreats

E-Star Comm

E-Star Commercial Management Pre-IPO - Better Disclosure in New Prospectus

E-Star Comm

E-Star Commercial Management Pre-IPO - Still Largely Reliant on Galaxy, Poor Disclosure Doesn’t Help

Kilcoy

Kilcoy Global Foods Pre-IPO - Rapid Earnings Growth on the Back of Margin Improvement

Kilcoy

Kilcoy Global Foods Pre-IPO - A Lot of Things Still Remain Unexplained

Kuaishou

Kuaishou Technology Pre-IPO - The Positives - Hot Segment, Fast Growth

Kuaishou

Kuaishou Technology Pre-IPO - The Negatives - Ample Doubts Remain

MegviiMegvii (旷视) Pre-IPO - Remarkable Growth (Part 1)
MegviiMegvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential
MegviiMegvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent
MegviiMegvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis
MegviiMegvii (旷视) Pre-IPO - Initial Thoughts on Valuation
OcumensionOcumension (欧康维视) Pre-IPO: All Ready for a Great Listing Except a Block Buster
RemeGenRemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48
ToplistToplist China Pre-IPO - Overwhelmingly More Negatives than Positives
TaslyTasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
WeDoctorWeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More
WeDoctorWeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor
India
ASKASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Anmol IndAnmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotel

Bharat Hotels Pre-IPO - Catching up with Peers

Brookfields REIT

Brookfields India Real Estate Trust Pre-IPO - The Positives- Provides Different Geographic Exposure

Brookfields REIT

Brookfields India Real Estate Trust Pre-IPO- The Negatives- Asset Details Leave Questions Unanswered

Bajaj En

Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It

CMS InfoCMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal CropCrystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
ESAF SFBESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party
Flemingo Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country
Emami CemEmami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO
IRFCIndian Railway Finance Pre-IPO - Low Risk, Low Margin Business
NSENSE IPO Preview- Not Only Fast..its Risky and Expensive
NSENational Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta

LIC

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO

Lodha

Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
Penna CemPenna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid
PNB MetPNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers
Samhi HotelsSamhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace
Malaysia
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
Thailand
PTTORPTT Oil and Retail IPO - F&B Business Is the Profit Driver
The U.S
CDPCDP Holdings Pre-IPO Review - Highly Reliant on Best Inc.
CloudMindsCloudMinds Inc Early Thoughts - Still Nascent
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