ECM Weekly (23 March 2019) - ESR, Sun Car, Ruhnn, CanSino, Frontage, Wuxi Bio, WiseTech,

Theme of the week: Block trades/Placements + news flow on upcoming IPOs

Starting with placements, the shareholders of Wuxi Biologics (Cayman) Inc (2269 HK) are back on the market again to sell some shares. They been quite consistent with the selling and our team have covered the company the IPO each of the placements. Wisetech Global (WTC AU) and Platinum Asset Management (PTM AU) also had blocks that were sold earlier this week. The former did excceedingly well post-placement, currently more than 10% above its deal price while the latter had struggled as a result of Kerr and his ex-wife selling a portion of their shares in the company.

As for upcoming IPOs, Hong Kong ECM activity is ramping up. Megvii, the Chinese AI startup is looking to list in Hong Kong or US whereas China Feihe (FEIHE HK) is said to be revisit its US$1bn HK IPO. Ke Yan, CFA, FRM has covered the latter in this insight almost two years ago.

We also heard that Frontage had already met investors and Ke Yan, CFA, FRM has provided preliminary thoughts on valuation in:

• Frontage Holding (方达控股) IPO: Updates from 2018 Numbers

Mulsanne Group (previously known as Alpha Smart (GXG)), Xinyi Energy Holdings, CMGE Tech, and 360 ludashi (鲁大师) re-filed their draft prospectuses. We have covered Mulsanne and Xinyi Energy in:

• Alpha Smart Pre-IPO - PE Investors Recovered 56% of Their Cost in Two Years but Left It in Debt
• Xinyi Energy (信义能源) IPO: High Dividend Yield but Depreciating Asset
• CMGE Tech (中手游) Pre-IPO Review - Unfortunate Timing

360 ludashi's previous filing indicated that its IPO deal size will be small (<US$100m). However, the updated financials shown an almost 50% YoY PATMI growth which could put its IPO at a borderline deal size of US$100m if growth maintains at 50%.

In the U.S, Yunji Inc. (YJ US) filed for a US$200m IPO. The company runs a Chinese e-commerce site that uses a social platform to promote its products. We will be writing an early note on the company next week.

In Singapore, Eagle Hospitality REIT is said to have started investor education for its IPO while Lendlease is planning to raise up to US$500m for its retail REIT according to media reports.

In other ASEAN markets, there are also a handful of IPOs to watch out for.

• In Indonesia, Lion Air is said to be targeting US$1bn listing in the third quarter of this year and it is starting to gauge investor interest. MAP Actif has already started pre-marketing its IPO.
• In Thailand, Kerry Express Thailand is said to have hired banks to prepare for a >US$100m IPO.
• In Malaysia, QSR Brands (QSR MY) has started to pre-market for its US$500m IPO. Sumeet Singh had previously written an early note:
  • QSR Brands Pre-IPO - As Healthy as Fast Food