ECM Weekly (26th September 2021) - Hanyu Med, Abbisko, SenseTime, ANE, Nykaa, Prudential HK

Events next week:

Hong Kong IPO is getting busier with a few IPOs looking to launch soon after getting approval from HKEX. They include Shanghai MicroPort MedBot Group (MMG HK), Shanghai Hanyu Medical Technology (SHM HK), Abbisko Cayman (ABB HK), ANE Logistics (1292621D CH), and Beijing Airdoc Technology (BAT HK), which we have covered this week:

• Shanghai Hanyu (捍宇医疗) Pre-IPO: Thoughts on Valuation
• Abbisko (和誉) Pre-IPO: Strong Team but FGFR Inhibitors Not Convincing Yet
• ANE Logistics Pre-IPO - PHIP Updates - Underlying Growth Is Far from Clear
• Beijing Airdoc (北京鹰瞳科技) Pre-IPO - A Niche Field with Merits but Can It Sell?
• MicroPort MedBot Pre-IPO - RoboDoc - Pre-Revenue, Has a Large Competitor but a Large Market as Well

This week, Tam Jai, a restaurant chain operator, launched its US$179m IPO on Thursday. The company will price on 28th and trading debut will be on 7th October.

• Tam Jai International IPO - Favourable Risk to Reward at Low End

Asymchem Laboratories (002821 CH) and Lingyi-iTech received CSRC approval for their potential US$1.5bn and US$2bn H-shares listing, respectively. We also covered SenseTime Group (1475539D HK) which is likely to try to list by the end of this year.

• Asymchem Labs A/H Listing Early Look - Fast Growing, Relatively Insulated
• SenseTime Group (商汤集团) Pre-IPO - Fast-Growing but Still Finding Its Footing

And the U.S. finally gets breath of life with FWD Group Holdings (FWD US), the insurance business of Pacific Century Group, filing its prospectus with the SEC for a US$3bn IPO.

In India, we initiated on FSN E-Commerce Ventures (Nykaa) (1003622D IN) which is looking to raise around US$550m. The company is the leader in Beauty and Personal Care Platform in India in terms of value of products sold in FY21.

• FSN E-Commerce (Nykaa) Pre-IPO - Mixed Bag - Fashion Growing, Beauty Slowing

In Korea, we compared Simone to peers and shared our final thoughts on IPO valuation. The IPO’s bookbuild was delayed till mid October.

• Simone IPO - Peer Comparison and an Uncompelling Valuation

For IPO debuts, Simplex Holdings (4373 JP) traded well closing 27% higher on the first day whereas Broncus (2216 HK), owing to its expensive valuation and relatively poor IPO demand, closed almost 20% below IPO price based on Friday's close price.

• Broncus (堃博医疗) IPO Trading: Chilled for a Reason but Mind the Share Concentration
• Simplex Holdings IPO Trading - Listing Round 2

Tearsheets for newly filed IPOs this week:

• Vedant Fashions Pre-IPO Tearsheet
• Shui on Xintiandi Pre-IPO Tearsheet
• AIM Vaccine (艾美疫苗) Pre-IPO Tearsheet (Refiled)

It’s another busy week in the placement space. Transurban raised about US$2bn for the acquisition of the remaining 49% stake in WestConnex with a shortfall bookbuild that was priced close (2% discount) to its undisturbed price. Prudential also launched its US$2.9bn international and public offering in Hong Kong which had been well flagged. The deal was reportedly priced at HK$143.80, about 2.8% discount to Friday’s close price.

• Transurban Entitlement and Shortfall - Well Flagged Deal for a Well Known Asset
• Prudential Hong Kong Offering - Well Flagged Pivot to Asia, Mind the Liquidity Gap
• Centuria Industrial REIT - Past Deals Have Done Well, but This Deal Is Much Bigger
• Momo.com Placement - Selldown by Woori, Could Be Worth a Small Bet