bullish

ECM Weekly (26 Apr 2020) - Kingsoft Cloud, WeDoctor, Akesobio, Kotak Mahindra Bank

374 Views26 Apr 2020 12:44
SUMMARY

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.

Accuracy Rate:

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)

New IPO filings this week

  • Hangzhou Tigermed (US$1bn, Hong Kong)
  • Ebang International (~US$100m, U.S.)

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

NameInsight
Hong Kong
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
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) Pre-IPO: Why Facebook Should Worry About TikTok

ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)

ByteDance

ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H?

ByteDance

ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants

ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok

ByteDance

ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India

GTMH

GreenTown Mgt (绿城管理) Pre-IPO - Sacrificed Margins in Pursuit of Growth, Muddled by JVs

Helenbergh

Helenbergh (海伦堡) Early Thoughts - The Usual Red Flag - Related Party Transactions

Hepalink

Shenzhen Hepalink (海瑞普) A+H: A Heparin-API King but Nothing Too Exciting

Hepalink

Shenzhen Hepalink (海瑞普) A+H: FY2019 Results Snippet and Valuation Update

Kilcoy

Kilcoy Global Foods Pre-IPO - Rapid Earnings Growth on the Back of Margin Improvement

Kilcoy

Kilcoy Global Foods Pre-IPO - A Lot of Things Still Remain Unexplained

Kintor

Kintor Pharma (开拓药业) Pre-IPO: Interesting Prostate Cancer Drug but Low in Core Assets

Kintor

Kintor Pharma (开拓药业) Pre-IPO: Thoughts on Valuation

MegviiMegvii (旷视) Pre-IPO - Remarkable Growth (Part 1)
MegviiMegvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential
MegviiMegvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent
MegviiMegvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis
MegviiMegvii (旷视) Pre-IPO - Initial Thoughts on Valuation
PeijiaPeijia Medical (沛嘉医疗) Pre-IPO: Reminiscence of Venus Medtech?
Smoore

Smoore Tech (麦克韦尔) IPO: Hidden E-Cigarette Player Behind the FEELM Technology

Smoore

Smoore Tech (麦克韦尔) Pre-IPO: 6Y and 1H2019 Financials Show Technology Driven Growth

Smoore

Smoore Intl (思摩尔国际) Pre-IPO: Tripling Capacity in Three Years

Smoore

Smoore Intl (思摩尔国际) Pre-IPO: Thoughts on E-Cig Regulation

TaslyTasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
YeahkaYeahka (移卡) Pre-IPO Review - Growing in an Increasingly Competitive Space
YeahkaYeahka (移卡) Pre-IPO - Peer Analysis and Early Thoughts on Valuation
Zhenro SvcZhenro Services (正荣服务) Pre-IPO - Diversifying Away from Zhenro Property Group
Zhenro SvcZhenro Services (正荣服务) Pre-IPO - Peer Comparison and Thoughts on Valuation
WeDoctorWeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More
WeDoctorWeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor
India
ASKASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Aakash EduAakash Education Pre-IPO - Fast Growth in an Attractive Sector
Anmol IndAnmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders
Bharat Hotel

Bharat Hotels Pre-IPO - Catching up with Peers

Burger King

Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster

Burger King

Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex

Bajaj En

Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It

CAMSCAMS Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance
CMS InfoCMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal CropCrystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
ESAF SFBESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party
Equitas SFBEquitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing
Equitas SFBEquitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing
Flemingo Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country
Emami CemEmami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO
IRFCIndian Railway Finance Pre-IPO - Low Risk, Low Margin Business
NSENSE IPO Preview- Not Only Fast..its Risky and Expensive
NSENational Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some
MazagonMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
MindspaceMindspace Business Parks REIT Pre-IPO - Decent Growth but Not All Assets Are Equal
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta

LIC

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO

Lodha

Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
Penna CemPenna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid
PNB MetPNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers
Samhi HotelsSamhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace
Malaysia
Mr DIYMr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia
Mr DIYMr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition
Mr DIYMr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share
Mr DIYMr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
Thailand
SCGPSCGP Pre-IPO - Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage
The U.S
CDPCDP Holdings Pre-IPO Review - Highly Reliant on Best Inc.
CloudMindsCloudMinds Inc Early Thoughts - Still Nascent
Kingsoft CloudKingsoft Cloud (金山云) Pre-IPO: The Leading Cloud Provider in China
Kingsoft CloudKingsoft Cloud (金山云) Pre-IPO: Video Streaming Exposure and Aggressive Industry Forecast
Kingsoft CloudKingsoft Cloud (金山云) Pre-IPO: Thoughts on Peers and Valuation
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