ECM Weekly (20 June 2020) - Hygeia, Kangji, Genetron, JD.com, Archosaur, Pop Mart

ECM activity in Hong Kong still looks strong and were mainly in the biotech space. We've had Kangji Medical (1498779D CH) and Hygeia Healthcare Group (1702613D CH) open their Hong Kong bookbuilds earlier this week and they are expected to debut on the 29th of June. JD.com Inc (ADR) (JD US) also started trading in Hong Kong and has been holding up above its deal price.

• Hygeia Healthcare (海吉亚) IPO: Hot Deal but Expect Tiny Allocation
• Kangji Medical (康基医疗) IPO: Hot Deal with Some Room for Non-Cornerstone
• JD Secondary Trading Update - Strong Demand but Won't Have Any Index Flows

Considering how well most of the recent IPOs have traded, there will likely be more deals in the coming few weeks. We are hearing that GreenTown Management Holdings (GTMH HK) has started pre-marketing this week while China Bohai Bank (BOHAIBZ HK) and Ocumension Therapeutics are starting their pre-marketing next week. Bohai and Ocumension will be likely be raising about US$2bn and US$300m in their respective IPOs. There was also news that Huazhu Group (HTHT US) is exploring a Hong Kong secondary listing and Yum China Holdings, Inc (YUMC US) has already filed confidentially with HKEX for its secondary listing as well.

It has been a quiet year for India's ECM space but Sumeet Singh shared this thoughts on what are some of the upcoming deals that to come and what to expect in the pipeline in:

• India ECM 2020 Mid-Year Review - A Year of Secondary and Rights Issues

Other upcoming IPO coverage and trade ideas setup for upcoming lock-up:

• Archosaur Games (祖龙娱乐) Pre-IPO - Dragon Raja Will Continue to Drive Revenue - Walkthrough & Thoughts
• Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer?
• Happiest Minds Pre-IPO - Decent Growth, Reputed Founder but Less than Reassuring Metrics
  • JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation

In the U.S., Genetron Holdings (GTH US) closed its bookbuild this week and debuted on Friday but returns were nowhere as good as Burning Rock Biotech (BNR US) last Friday. Genetron traded up about 10% initially but struggled to stay above its IPO price over rest of the day.

• Genetron (泛生子) IPO: Metrics Inferior to Burning Rock
• Genetron (泛生子) IPO Trading: Priced at Our Fair Value, yet There Could Be Upside

Since markets have traded well in the past week, there were also plenty of placements. We've had a couple of deals come our way and most of them have traded well.

• Shandong Gold Placement: Almost a Clean Up Trade
• SkyCity Placement: Past Performance and the Relative Value Trade
• JMDC Placement: Discovery of Japanese Ali-Health and Ping'an Good Doctor
• HDFC AMC Placement/OFS - Forced to Sell, but It's Not the Best of Times to Be Selling or Buying