ECM Weekly (27 June 2020) - Smoore, Ocumension, Hepalink, Immunotech, Sri Trang Gloves, Yum China HK

It has been a hectic week in the ECM space. In Hong Kong, Hygeia Healthcare Group (6078 HK) and Kangji Medical (9997 HK) will list on Monday while Shenzhen HepaLink Pharmaceutical (H) (HEPALINK HK) and Immunotech Biopharm (IMMBIO HK) launched their bookbuild earlier this week and will be listing the week after.

• Hygeia Healthcare (海吉亚) IPO Trading: Upside Might Take Time to Crystalize
• Kangji Medical (康基医疗) IPO Trading: Ample Upsides as Peer Performed Well
• Shenzhen Hepalink (海瑞普) A+H: Hot Deal that Might Not Fly
• Immunotech Biopharm (永泰生物) IPO: Behind the Curve in Cell Therapy

In Thailand, Sri Trang Gloves' bookbuild closed mid-week and will debut next week.

• Sri Trang Gloves IPO - One to Keep an Eye for +ve Effect of COVID-19

There are also more than a handful more approvals that have came through with PHIP filed on HKEX. We have covered most of the names in our notes this week:

• GreenTown Management Holdings (绿城管理) Pre-IPO - Peer Comparison and Preliminary Thoughts on Valuation
• Cathay Media (华夏视听) Pre-IPO: Volatile Drama Earnings Smoothened by Private University
• Yum China HK Listing - Early Look - Relatively Bigger Deal Should Have a Relatively Bigger Impact
• Ocumension (欧康维视) Pre-IPO: All Ready for a Great Listing Except a Block Buster
• Smoore Intl (思摩尔国际) Pre-IPO: PHIP Updates, A Slow yet Encouraging Start in 2020

As if those were not enough, four more property and construction management services companies filed their draft prospectus and, out of which, KWG Living Group and A-City Group stand out in terms of size as they are expecting to raise about US$400m each. Hillhouse-backed Genor Biopharma has also filed its draft prospectus (under the name JHBP (CY) Holdings) and was earlier expected to raise about US$200m in its IPO.

Beyond Hong Kong, we may start to see more listings come through in India soon as we are getting more newsflow of listings in the country. This week there was also the re-filing of Mindspace REIT.

For China ADRs, there was only Agora Inc. (API US)'s listing on Friday, which did well, to say the least. Agora's shares closed about 150% above its IPO price, which was already priced 11% above the original range. Clearly, I was wrong to focus on valuation and data disclosure and not see Agora for the potential it could achieve.

• Agora Inc. IPO - Same Issues at Unattractive Valuation
• Agora IPO Trading - Hyped Up and Priced Above Top-End

It has also been a busy week for placements and we are seeing deals not just from Australia but across Asia Pacific. Here are our coverage for the week:

• Challenger Placement - Room for New Shareholders But We Remain Lukewarm
• MINT Placement - Known Asset, More Data Centres, Less SME Exposure -> Heading in the Right Direction
• GLP J-REIT Placement - Setting a New Trend for JREITs
• XD Inc. (心动有限公司) Placement - Company Sells First to Lock-In Cash
• Embassy Office Parks REIT Placement - To Big to Swallow if Its Not a Reverse Enquiry
• IDP Education Placement - Last Deal Was a Smash Hit, This One Won't Be as Lucky
• HDFC Placement - Early Look - Looking to Raise US$1.9bn
• Qantas Placement - Banking on a Trans-Tasman Travel Bubble
• Osotspa Placement - Resilient Business but Founding Family Is Selling