ECM Weekly (25 October 2020) - Ant Group, Lufax, JW Thera, Shimao Svcs, GDS Secondary, Nanofilm

Ant Financial (1051260D CH)'s IPO is finally on the home stretch. PHIP has been filed with HKEX this week and more details on the deal structure were revealed in Alibaba Group (BABA US)'s SEC filing. Other Hong Kong IPOs also rushed to launch; Shimao Services Holdings (873 HK) launched on Monday, GDS Holdings (ADR) (GDS US) on Wednesday and JW Therapeutics (2126 HK) on Thursday. Link to our coverage on these are below.

• Ant Group Pre-IPO: Deal Structure, PHIP Updates, Short-Term Trades
• Ant Group Pre-IPO: Quick Take on FTSE and MSCI's Clearer Guidelines
• Shimao Services (世茂服务) IPO - Paying for Growth
• JW Therapeutics (药明巨诺) Pre-IPO: Pricing with In-License Potential
• JW Therapeutics (药明巨诺) IPO: Free Options for Potential License-In
• GDS Holdings Hong Kong Secondary - Going Big. Will Almost Become Net Cash, for a While.

We are hearing that Sunac Services Holdings (1820476D HK) and Jinke Smart Services (JKS HK) are close to launching their bookbuild soon too as they are in the approval and premarketing phase. We also initiated coverage on upcoming IPOs such as Dida (DIDA HK) and Antengene (ANGENE HK).

• Antengene (德琪医药) Pre-IPO: Proven R&D Track Record by Founder Matters
• Dida Pre-IPO - Making Hay While Big Brother Retreats
• Sunac Services (融创服务) Pre-IPO - Promising Growth & Diversifying Away from Sunac Via Acquisitions
• Jinke Smart Services (金科智慧服务) Pre-IPO - GFA Growth at the Expense of Fees
• Jinke Smart Services (金科智慧服务) Pre-IPO - Peer Comparison and Early Thoughts on Valuation

In the U.S, Lufax Holdings (LU US) launched its IPO bookbuild on Friday, aiming to raise US$2.4bn ahead of Ant's IPO. Sumeet Singh compared the company to peers and shared his thoughts on assumptions and valuations in:

• Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue
• Lufax IPO - Stuck with the Earlier Fundraising Valuation

In India, Kalyan Jewellers got SEBI's approval for IPO but it is only likely to launch early next year. Burger King India refiled its draft prospectus this week and it is planning to offer more primary shares this time round.

• Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster
• Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex

Last, but not least, in Singapore, Nanofilm Technologies International (NTI SP) launched its IPO bookbuild to raise up to US$345m. Books were well covered and reported to be about 19x oversubscription rate. The company will list next Friday.

• Nanofilm Technologies IPO - Impressive Growth and Margins
• Nanofilm Technologies IPO - Expensive but Still Justifiable Valuation

As for trading debuts, MR D.I.Y. Group (MRDIY MK) and Converge ICT Solutions Inc (ITC PM) will list on Monday while Simcere Pharmaceutical Group (2096 HK) will trade on Tuesday but has already fallen 18% below IPO price in its grey market trading. Finally, Nanofilm Technologies International (NTI SP), Shimao Services Holdings (873 HK), and KWG Living Group (3913 HK) will trade on Friday.

• Converge ICT IPO Trading - Long Growth Runway
• MR DIY IPO Trading - Good Demand, Still Very Reasonable Valuation
• Simcere (先声制药) IPO Trading: Mind the Sentiment Changes

Placements:

• Zip Placement - Sorry, It's Not You. It's Me
• Mapletree Logistics Placement - Big Deal, Little Accretion but past Deals Have Done Well