ECM Weekly (23 Feb 2020) - SBI Cards, Peijia Medical, Shenzhen Hepalink, Home First Finance

Hong Kong market continued to stay fairly quiet this week but markets may be gaining back momentum. We are hearing that China Bright Culture Group (CBCG HK) will likely launch its book next week and look to price early March. The company is a second tier TV program production company in China was last reported to seek US$150m in its IPO. Ke Yan, CFA, FRM has already covered the deal earlier in:

• China Bright Culture (煜盛文化) Pre-IPO: Unfavorable Regulatory Environment

There were also news reporting that Megvii Technology (1737211D HK) will be looking to refile its prospectus soon after it has updated its 2019 financials.

In India, SBI Cards (SBICARDS IN) is looking to open its books on 2 March 2020 while the anchor book will be open for one day on the 28th of February. According to reports, the company has already set its price range at Rs750–Rs755 per share which will raise about Rs100bn (US$1.39bn). Sumeet Singh also already looked at the valuation based on the reported price range in his latest note:

• SBI Cards and Payments IPO - Its Expensive, as It Should Be

For the complete coverage of the company, see the notes below:

• SBI Cards and Payments Pre-IPO - The Positives - Ticks a Lot of Boxes
• SBI Cards and Payments Pre-IPO - The Negatives - Banking on a Single Growth Driver
• SBI Cards and Payments Pre-IPO - Valuations - A Tale of Two Revenue Streams

In Singapore, United Hampshire U.S. REIT was said to be looking to kick of investor roadshow for its IPO as early as next week and the REIT is looking to raise about US$350m. This is likely aided by Elite Commercial REIT's good debut earlier this month. We will cover the IPO when the prospectus is available.

Strangely, this week has been a relatively busier week for Australia. We saw primary and secondary placements from five companies, Bendigo And Adelaide Bank (BEN AU), Coles Group Ltd (COL AU), Orica Ltd (ORI AU), Viva Energy Reit (VVR AU), and New Hope Corp (NHC AU). Most of the deals have been holding up above their respective deal price except for Coles and New Hope Corp.

• Bendigo and Adelaide Bank Placement - Cutting Dividend to a Sustainable Level
• Coles Placement - Selldown from Wesfarmers Expected but Discount Is Narrow
• Orica Placement - Not a Game Changer but past Deals Did Well
• Viva Energy REIT Placement - Clean up Trade by Viva Energy