ECM Weekly (27 September 2020) - Ant Group, Chindata, SCG Packaging, JHBP/Genor, Neuedu, UTI AMC

Hong Kong IPOs are still on a roll. Joy Spreader Interactive Technology (6988 HK) broke its IPO price on Wednesday despite its strong institutional and retail subscription but Ming Yuan Cloud Group (909 HK) still closed 86% higher than its IPO price on debut.

IPO activity is busier than ever. For upcoming HK IPOs, Radiance filed its draft prospectus likely to raise US$500m after its March filing lapsed earlier. Weihai City Commercial Bank (WECCBZ CH) was approved and filed its PHIP for its US$800m IPO whereas Excellence Commercial Property (1611267D CH) and First Services was reported to have won HKEX approval but has yet to file their PHIP. There were also reports that POP MART (POP HK) is looking to raise US$600m as early as October. We have covered most of these IPOs in:

• Weihai City Commercial Bank Pre-IPO - More of an Asset Manager Rather than a Lender
• Radiance Holdings (金辉控股) Pre-IPO - Property Mgt Svc Sold Out at a Ridiculously Cheap Valuation
• Pop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth
• Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer?
• Pop Mart Pre-IPO - Peer Set and Valuation
• Excellence Commercial Property (卓越商企服务) Pre-IPO - Diversifying Away from Excellence Group

As for HK bookbuilds, JHBP (Genor) (6998 HK) launched its IPO bookbuild with a strong cornerstone lineup and closed a day earlier. Neusoft Education (9616 HK) launched its bookbuild last Friday and was said to have priced at the top-end. The company is listing this coming Tuesday. Lastly, Everest Medicines (EVEREST HK) launched its IPO bookbuild on Friday and Ke Yan, CFA, FRM discussed his take on valuation.

• JHBP/Genor (嘉和生物) IPO: Undemanding Valuation with a Strong Investor Line-Up
• Neuedu (东软教育) IPO: Fairly Valued but Quality Domestic Investors
• Everest Medicines (云顶新耀) Pre-IPO: Thoughts on Valuation

Also, not forgetting Ant Financial (1051260D CH), Sumeet Singh shared his thoughts on the mega IPO's valuation and how it stacks up against peers.

• Ant Group Pre-IPO: First Stab at Valuation
• Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk
• Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits

Next week will be packed with HK secondary listings too. There will be three more ADR secondary listing debut after Huazhu Group (HTHT US) successful listing last week; Zai Lab Ltd (ZLAB US) on Monday and ZTO Express (ZTO US) and Baozun Inc. (BZUN US) on Tuesday.

• Zai Lab HK Trading - Interest and Behaviour in Line with Huazhu, Highest Concentration so Far
• ZTO Express Secondary Listing - Smaller than Expected
• Baozun HK Secondary Listing - Large Dilution Needs a Large Correction

IPO activity in the rest of Asia looks busy too. In India, UTI Asset Management (UTIAMC IN) launched its IPO at a discount to peers but still doesn't look cheap enough. In Thailand, SCG Packaging (SCGP TB) is looking to raise up to US$1.2bn. In Japan, Kioxia (6600 JP), formerly Toshiba Memory Corporation started bookbuild to raise up toUS$2.9bn. Last, but not least, and perhaps the most thematically favorable IPO as compared to the previous two, Chindata (CD US) is looking to raise about US$500m and launched its bookbuild on Thursday.

• Chindata Group IPO - Riding High on Sector Momentum
• Kioxia IPO: Push Factors for a NAND Pure-Play Premium Valuation
• SCG Packaging IPO - Unexciting
• UTI Asset Management IPO - Probably Not Cheap Enough

For other upcoming IPOs in rest of Asia, we are likely going to see MR D.I.Y. Group (1706769D MK) launch its bookbuild soon and we took a look at valuation with updated assumptions and peer valuation. We also took a first look at MINISO Group Holdings (MNSO US) which just filed for U.S. IPO, likely to raise US$1bn.

• MR. D.I.Y. Pre-IPO - Updates and Thoughts on Valuation
• MINISO (名创优品) Pre-IPO - Asset-Light and Fairly Resilient Despite COVID

Placements this week:

• Kingsoft Cloud (金山云) Placement - Selling Slightly Ahead Lock-Up
• JS Global Lifestyle (JS 环球生活) - Big Large Share Price Run-Up, Large Sell Down Overhang