ECM Weekly (21 February 2021) - Tencent Lock-Up Expiry, SciClone Pharma, Joinn Lab, Bairong, Betta

Hong Kong ECM continues its win streak. New Horizon Health (6606 HK) closed 3x of its IPO on its debut on Thursday. And the timing and conditions couldn't be any better for investors to start looking at a potential selldown of Tencent Holdings (700 HK) block by Prosus NV (PRX SJ) as its three-year lock-up period comes close to expiry. Sumeet Singh shared his analysis on why a selldown is likely to come soon and how one should position leading up to the selldown.

• Tencent Placement Lock-Up Expiry - US$10bn+ Block and Buyback Linked Holdco Trade

For upcoming IPOs, Sciclone Pharmaceuticals (6600 HK) and Joinn Laboratories (H) (6127 HK) launched their bookbuilds to raise up to US$281m and US$843m, respectively. Ke Yan, CFA, FRM shared his thoughts on deals in:

• SciClone (赛生药业) IPO: A Mediocre Deal
• Joinn Lab (昭衍新药) A+H: Visible Upside

Cheerwin (CHEER HK) won approval for its Hong Kong IPO and has been premarketing this week. Books will likely open soon (likely this coming week). We also covered of other upcoming IPOs such as Bairong (1569395D CH), Betta Pharmaceuticals (300558 CH) (A+H), Intco Medical Technology Co., Ltd-A (300677 CH), and most importantly, our first look at JD Logistics (JDL HK).

• JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond
• Bairong Pre-IPO - The Negatives - Playing with Its Own Data
• Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1
• Betta Pharma (贝达医药) A+H: Tier 2 Player Struggled to Break Out
• Cheerwin (朝云集团) Pre-IPO - Monetizing a Mature Business

In the U.S, Coupang (CPNG US) filed its prospectus last week and bookbuild will likely be launched soon. We looked at the good and bad of the company and the competitive landscape that it operates in.

• Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers
• Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch
• Coupang Pre-IPO - Fair Bit of Competition but It's Doing Better than Most Local Peers

Singapore IPO market is also looking good this year with Aztech (AZ SP) likely to launch its books very soon (next week) and Thai Beverage (THBEV SP) confirming its plans to spin out BeerCo.

• ThaiBev BeerCo Pre-IPO - Declining Rev and Mkt Share Concerns but Good Cost Control
• ThaiBev BeerCo Pre-IPO - Thoughts on BeerCo and ThaiBev HoldCo Valuation

In India, Brookfield India Real Estate Trust (1862893D IN) raised about US$520m in its IPO. Share price didn't hold up well likely due to issues regarding the quality of assets.

• Brookfields India Real Estate Trust IPO Trading - Mixed Bag

Placements:

• Japan Airport Terminal Placement - Big Dilution and Not Accretive Means It Needs to Trade Lower
• Hua Hong Semiconductor Placement - NEC Selling Its 7.6% Stake in Hua Hong
• Keppel REIT Placement - Well-Flagged, Accretive Acquisition