ECM Weekly (25 May 2019) - ESR Cayman, Hansoh Pharma, Tai Hing, China East Edu, Haitong UniTrust

669 Views25 May 2019 01:51

SUMMARY

Aequitas Research puts out a weekly update on the deals that have been covered by Smartkarma Insight Providers recently, along with updates for upcoming IPOs.

This will be the third week in a row we are saying: there are more IPOs coming in Hong Kong!Momentum seems to be holding up as we head into the end of Q2. First off, there will be 4 IPOs starting to trade throughout next week. Mulsanne Group Holding Ltd (1817 HK) will debut first on Monday.

This would be interesting to watch because the IPO utilized the new pricing mechanism in Hong Kong to price its IPO below the bottom end of its indicated price range rather than withdraw and refile. This mechanism reminds us of the pricing flexibility of US IPOs wherein companies could price below its indicative price range to ensure that it performs well on its debut despite poor demand during bookbuild. Xinyi Energy Holdings Ltd (3868 HK), Frontage Holdings (1521 HK), and MabPharm (2181 HK) will trade on Tuesday, Thursday, and Friday respectively.

For upcoming bookbuilds, Tai Hing (1719303D HK) and China Tobacco International (GHALPZ CH) have filed their PHIP this week and will be likely be opening their books next week. We are also hearing that CSSC Hong Kong Shipping Co Ltd (0931049D CH) and China East Education (EASTEDU HK) will open books on Monday while Hansoh Pharmaceutical (HANSOH HK) will be on Tuesday.

IPO activity in other countries have been fairly muted. Eagle Hospitality Trust (EAGLEHT SP) finally started trading in Singapore. Its share price closed 6% down as the IPO was undersubscribed. We will leave the updates on the IPO to Sumeet Singh on Monday.

In the U.S, GSX Techedu (GSX US) will launch its book next week while Meten (MEDU US) which just filed its US$100m IPO with the SEC will be premarketing next week.

Accuracy Rate:

Our overall accuracy rate is 72.4% for IPOs and 63.9% for Placements

(Performance measurement criteria is explained at the end of the note)

New IPO filings

Sinic Holdings (Hong Kong, >US$100m)
Meten International Edu (the U.S, US$100m)

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.

Source: Aequitas Research, Smartkarma

News on Upcoming IPOs

Analysis on Upcoming IPOs

Name	Insight
Hong Kong
AB Inbev	Ab InBev Asia Pre-IPO - A Brief History of the Asia Pacific Operations - Eeking Out Growth in China
AB Inbev	Ab InBev Asia Pre-IPO - Quick Note - More like CR Beer Rather than Tsingtao
AB Inbev	Ab InBev Asia Pre-IPO - On Its Way to Potentially Being the Biggest HK IPO This Year
AB Inbev	Budweiser Brewing APAC Pre-IPO - It Will Be a US$5bn+ Raise Owing to Its Clean Balance Sheet
Ascentage	Ascentage Pharma (亚盛医药) IPO: Too Early for an IPO
Ant Financial	Ant Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
CIMC Veh	CIMC Vehicle (中集车辆): Market Leader of Semi-Trailers but Little Growth Ahead
Clarity	Clarity Medical (清晰医疗) IPO: Proxy to HK SMILE Surgery Demand
ByteDance	ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)
ByteDance	ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)
East Edu	China East Education (中国东方教育) Pre-IPO - The Company Known for Its Culinary School
China Tobac	China Tobacco International (IPO): The Monopolist Will Not Recover
China Tobac	China Tobacco Intl (HK) IPO: Proxy For the Chinese Cigarette Consumption
CSSC	CSSC (HK) Shipping IPO: A Cyclical Business Masked as an Income Stock
ESR	ESR Cayman Pre-IPO - A Giant in the Making
ESR	ESR Cayman Pre-IPO - Earnings and Segment Analysis
ESR	ESR Cayman Pre-IPO- First Stab at Valuation
ESR	ESR Cayman Pre-IPO - Updates from PHIP - Growth Remains on Track
ESR	ESR Cayman Pre-IPO - Updated Valuation and Key Risks
ESR	ESR Cayman Pre-IPO - Peer Comparison Quick Take - Bigger than Some, Much Smaller than Others
Hansoh	Hansoh Pharma (翰森制药) IPO: New Numbers, Pre-IPO Dividend and Boyu Investment (Part 3)
Hansoh	Hansoh Pharma (翰森制药) IPO: Thoughts on Valuation
Hansoh	Hansoh Pharma (翰森制药) IPO: Competitive Landscape of HS-10296
Helenbergh	Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions
Hut Chi-Med	Hutchison-China Med (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities
Jinxin	Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector
MicuRx	MicuRx Pharma (盟科医药) IPO: Betting on Single Drug in the Not so Attractive Antibiotic Segment
MabPharm	MabPharma (迈博医药) IPO: Assembled for a Trade?
MabPharm	MabPharm (迈博医药) IPO: Thoughts on Valuation (Part 2)
SH Henlius	Shanghai Henlius (复宏汉霖) IPO: Not an Impressive Biosimilar Portfolio
Tubatu	Tubatu Group Pre-IPO - Performing Better than Qeeka but Growing Much Slower, US$1bn a Stretch
Tubatu	Tubatu Group Pre-IPO - Online -> Online + Offline -> Online -> ?
South Korea
KMH Shilla	KMH Shilla Leisure IPO Preview (Part 1) - Highly Profitable Operator of Public Golf Courses in Korea
KMH Shilla	KMH Shilla Leisure IPO Preview (Part 2) - Valuation Analysis
Plakor	Plakor IPO Preview (Part 1)
Zinus	Zinus IPO Preview (Part 1) - An Amazing Comeback Story (#1 Mattress Brand on Amazon)
India
Aakash Edu	Aakash Education Pre-IPO - Fast Growth in an Attractive Sector
Anmol Ind	Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotels	Bharat Hotels Pre-IPO - Catching up with Peers
CMS Info	CMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal Crop	Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
Flemingo	Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country
NSE	NSE IPO Preview- Not Only Fast..its Risky and Expensive
NSE	National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some
Mazagon	Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. Bector	Mrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta
Lodha	Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
Lodha	Lodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
IndiaMart	IndiaMART Pre-IPO - Getting and Retaining Subscribers Seems to Be Difficult
PNB Met	PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers
Malaysia
QSR	QSR Brands Pre-IPO - As Healthy as Fast Food
The U.S
Douyu	Douyu (斗鱼直播) IPO: Leader At a Cost
Douyu	Douyu (斗鱼直播) IPO: Comparison with Huya (Part 2)
GSX	GSX Techedu (跟谁学) IPO Early Thoughts - Successful Pivot Away from Marketplace Model
Meten	Meten International Edu (美联国际教育) Early Thoughts - Unclear Strategies