ECM Weekly (24 Nov 2019) - Alibaba, OneConnect, Tyro Payments, New Frontier Corp, AlphaMab
Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Asia ECM markets are making its final sprint before the end of the year. Hong Kong continue to be active as Huali University Group (1756 HK), Alibaba Group (9988 HK), and Pharmaron Beijing Co Ltd-H (3759 HK) will be trading on Monday, Tuesday, and Thursday, respectively. Huali has already traded down about 7% in Friday's gray market while Alibaba's retail tranche was about 40x over-subscribed. For thoughts on Alibaba's listing and how past large deals have done, read Sumeet Singh's
- Alibaba IPO/Secondary - Neither Here Nor There - Index Announcements, Comparison to Other Deals
- Huali University (华立大学) IPO - Unattractive Valuation
For other upcoming IPOs in Hong Kong, we heard that Poly Property Development (POLY HK) is seeking approval next week, Renrui Human Resources (RHR HK) will be premarketing, and Bank of Guizhou Co Ltd (1147131D CH) is considering launching its H-share IPO this month. Last, but not least, JY Landmark, a property developer will likely launch its US$180m IPO after getting approval last week.
- Renrui Human Resources (人瑞人才) Pre-IPO Review - Riding on China’s Unicorns
- Poly Property Development (保利物业发展) IPO Early Thoughts - Well-Rounded Company
On the other hand, Megvii, which was seeking approval this week, faced with a small setback as the company was required to answer additional questions from the Hong Kong Exchange before getting approved. There were also two other rare setbacks this week with Heaven-Sent Gold (1342 HK) pulling its IPO after launching its IPO bookbuild and Home Credit (HC HK) cancelling its planned IPO after being approved since September.
- Megvii (旷视) Pre-IPO - Initial Thoughts on Valuation
- Home Credit Pre-IPO - PHIP Updates - Origination Flatlining, NPLs Remain High
- Heaven-Sent Gold (硅谷天堂黄金) IPO: An OTM Option
In Thailand, Bangkok Commercial Asset Management (BAM) has launched its IPO for up to US$887m. The deal will price on the 2nd of December and start trading on the 16th of December.
In the U.S., YX Asset Recovery (YX US) was pulled its IPO while Canaan Inc. (CAN US) despite opening high, closed at its IPO price on Thursday and has struggled to stay afloat.
Accuracy Rate:
Our overall accuracy rate is 72.9% for IPOs and 65.2% for Placements
(Performance measurement criteria is explained at the end of the note)
New IPO filings this week
- GeneTron (U.S., ~US$100m)
- Yeahka (Hong Kong, ~US$300m)
Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.
News on Upcoming IPOs
- China’s Ant Financial has no timetable for a listing but targets 2 billion users in a decade
- China firms shunning US as IPO destination
- Singapore's Wilmar eyes regulators' nod for China IPO in early 2020
- Home Credit drops Hong Kong IPO as valuation falls short
- Blacklisted Megvii's US$500 million Hong Kong IPO hit by regulatory setback
Analysis on Upcoming IPOs
- Alibaba IPO/Secondary - Neither Here Nor There - Index Announcements, Comparison to Other Deals
- OneConnect Financial Pre-IPO - The Positives - Prospects Appear Promising
- OneConnect Financial Pre-IPO - The Negatives - Previous Valuation Might Have Been Too Demanding
- New Frontier Corp (和睦家) Trade - A Relisting with a Bigger Asset
- Tyro Payments IPO - Probably Fairly Valued at the High-End but There Is Still the Banking Wild Card
- Tyro Payments IPO - Updates from the Prospectus - Some Good, Some Bad
- Alphamab (康宁杰瑞) Pre-IPO: Promising Readings from PHIP Updates
- EHang Holdings (亿航) Pre-IPO - Not Taking off yet and Probably Not Any Time Soon
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