ECM Weekly (23rd May 2021) - Zomato, Angelalign, Youran Dairy, Central China Mgt, Broncus, ForU

India’s IPO pipeline is starting to fill up with five new filings. Aptus Value Housing Finance and CarTrade, an online auto classifieds platform, are looking to raise about US$400m and US$270m, respectively.

Other filings include Devyani International, the largest franchisee for Yum Brands in India, targeting a US$200m IPO. Healthcare firms, diagnostics service provider, Krsnaa Diagnostics, and Supriya Lifesciences are both looking to raise US$165m each.

Notable filings in other exchanges include Novotech Health, TPG-backed Asian clinical research and testing provider, looking to raise US$1.5bn in its Hong Kong IPO. In the Philippines, Robinsons Land-sponsored, RL Commercial REIT, filed for a US$500m IPO.

For live deals in Hong Kong, JD Logistics priced close to its low-end, despite reporting solid demand from institutional and retail investors. The deal raised about US$3.2bn and shares will debut on Friday. New Hope Services also priced at the bottom-end and will debut on Tuesday.

• JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War

• JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond

• JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation

• JD Logistics (京东物流) Pre-IPO - PHIP Updates and Fine-Tuning Valuation

• JD Logistics (京东物流) Pre-IPO - Index Implications - It Will Cut Close

• JD Logistics (京东物流) Pre-IPO - Quick Note - New PHIP with 1Q21 Results Changes Narrative

• JD Logistics (京东物流) IPO - Widening Its Lead

• New Hope Service (新希望服务) IPO - Nothing Particularly Enticing

Property development project management company, Central China Management, launched its bookbuild this week. The deal is slated to price on Monday and will debut on 31st May.

• Central China Management (中原建业) IPO - Concentrated Exposure

Over the past week, Angelalign and China Youran Dairy secured their HKEX approval. The latter has already begun premarketing and it was reported to be looking to raise up to US$800m in its IPO.

• Angelalign (时代天使) Pre-IPO: Medical device player with consumer feature

• Angelalign (时代天使) Pre-IPO: Deserves a Premium to Peers

• Angelalign (时代天使) Pre-IPO: A Strong Ending of 2020

• China Youran Dairy(悠然牧业) Pre-IPO - A Leader Pulling Ahead in a Fragmented Market

• China Youran Dairy(悠然牧业) Pre-IPO - PHIP Updates - Much Better Disclosure

• China Youran Dairy(悠然牧业) Pre-IPO - Peer Comparison - Youran Is the Leader

We also initiated on Broncus Holding, a leading interventional pulmonology company, which just filed its draft prospectus last week. The company is looking to raise US$300m.

• Broncus (堃博医疗) Pre-IPO: Big Potential to Be Tested

In the US, JD-backed Chinese logistics firm, ForU filed its prospectus with the SEC for its US$500m IPO. Data disclosure was abysmally poor, such that it was hard to make sense of what has been happening at the company.

• ForU Worldwide Pre-IPO - Mostly Negatives

We initiated on Indian food services platform, Zomato. With an expected US$1.1bn deal size, this would be the largest listing in India from the tech sector. Sumeet gave a better walkthrough of Zomato’s history on top of the company’s prospectus and shared his thoughts on growth and costs.

• Zomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps

• Zomato Pre-IPO - Food Delivery Revenue Was Probably up 16x

For placements, Mapletree Industrial Trust raised US$385m to partially fund acquisition of 29 data centres in the US. The deal was priced at the top end and was 3.1x subscribed.

• Mapletree Industrial (MINT SP) Placement - Large but Accretive Deal, Becoming More like Keppel DC

The Government of India sold a 1.9% stake in Axis Bank, raising US$560m. The deal was likely expected since they have been selling down since 2019.

• Axis Bank Placement - Well Flagged, past Deals Have Done Well

Swiss Re AG sold down its remaining stake in New China Life Insurance. This being a cleanup trade had held up well even after pricing above initial price range.

• New China Life Placement - Picked the Bottom for Buying, Hopefully Not the Top for Selling
• New China Life Placement - Clean-Up Helps, past Deal Did Well