ECM Weekly (28 Oct 2019) - Samhi Hotel, JS Global, Megvii, Innocare, Bytedance

The overall IPO pipeline is still looking strong. We heard that China Feihe (FEIHE HK) is looking to launch its bookbuild on Monday while ESR is guiding its pricing to be around the mid-point. However, sentiment has not been ideal. Momentum stemming from Budweiser Brewing Company APAC (1876 HK) and Topsports International (6110 HK) strong debut has somewhat fizzled as there news that JS Global Lifestyle (1691 HK) pulled its IPO even after pricing at the low-end of its IPO price range.

Aside from JS Global, in the US, Youdao (DAO US)'s debut had been a disaster. Despite of the small float and support coming from Orbis and William Ding (indication of interest), shares close 26% below its IPO price on the first day.

We are hearing that Lizhi FM, a Xiaomi-backed Chinese podcast app, is planning to lodge a public filing soon while China's WeWork, uCommune, has filed confidentially for an IPO. This week, YX Asset Recovery, a delinquent consumer debt collection service provider in China filed its IPO listing whereas FangDD (DUO US) is bookbuilding and it will close its books on the 31st and list on the 1st of November.

Back in Australia, sentiment remained poor despite having a number of companies trying to list. PropertyGuru (PGU AH) became the latest victim, pulling its IPO. This wasn't exactly a surprise as Sumeet Singh mentioned in his notes that valuation at the IPO price range is too expensive. Either way, this is the fourth Australia IPO to be pulled in the past month which bodes poorly for Onsite Rental (ONSITE AU)'s IPO which is expected to start bookbuild on Monday.