Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Akeso Biopharma Inc (9926 HK) traded well on its Hong Kong IPO debut and closed about 50% above its IPO price. Ke Yan, CFA, FRM discussed deal dynamics and price levels in his trading note:
We are expecting more IPOs to come on the back of Akeso's strong performance giving bankers confidence to launch more deals in Hong Kong. There were news reports that Shenzhen Hepalink Pharma Co., Ltd. (002399 CH) has gotten CSRC approval for its Hong Kong IPO (A/H listing) and Peijia Medical (1740651D CH) has sought for Hong Kong approval this week and WeDoctor is looking to list in Hong Kong (from news earlier). We covered upcoming IPOs in:
However, in an unfortunate turn of events, SCMP reported that Megvii Technology (1737211D HK) may turn to the Star market in Shanghai for listing after its Hong Kong application lapsed in February.
There were also a handful of placements in Hong Kong this week. Sino Biopharmaceutical (1177 HK) struggled to hold above its deal price after its founder sold down some shares worth about US$300m. Hansoh Pharmaceutical (3692 HK), on the other hand, did way better, closed at HKD30.05 on Friday, about 12% above its deal price.
Other market were mostly quiet with a few placements. In Australia, Ramsay Health Care (RHC AU) raised about US$750m in its placement to enhance financial flexibility while Metcash Ltd (MTS AU) raise US$190m to shore up balance sheet and working capital needs. Whereas, in India, Kotak Mahindra Bank (KMB IN) is preparing for an equity capital raise with both primary and secondary shares. The selldown has been well anticipated while the primary raise should help strengthen. With support from index flows, the deal should trade well. Read more in:
Last but not least, another China ADR is ready to brave the U.S. market after Luckin Coffee (LK US)'s scandal. Ebang (EBANG US) filed for a US$100m IPO on Friday. Aside from that, Ke Yan, CFA, FRM continued his coverage on Kingsoft Cloud (1775017D US) with valuation and peer comparison.
Our overall accuracy rate is 73.4% for IPOs and 65.3% for Placements
(Performance measurement criteria is explained at the end of the note)
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.
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