ECM Weekly (29 Mar 2020) - Wuxi AppTec, Kintor Pharma, Softbank Group-Driven Placements and More!
Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
We finally get a placement in this week as global markets rebounded. Sumeet Singh covered Cochlear Ltd (COH AU) US$478m placement earlier this week which was upsized to about US$530m. Share price held up well above the A$140 price and closed 11% above on Friday.
This week, we looked at some potential trade/investment ideas around potential upcoming events and past IPOs. Softbank Group's potential selldown will probably be the talk of the town for a while as the company announced that it is looking to monetize its investments to support JPY2 trillion share buyback, repayment of debt, buyback of bonds and increase cash buffer. But, there were no specific timeline given.
- Softbank Group-Driven Placement - Softbank Corp - Sell Down Will Be Supported by Yield
- Alibaba's Softbank Driven Placement - Sounds Big but May Not Be as Large in the End
- Trade/Investment Ideas from 2019/20 IPOs
- Trade/Investment Ideas for 2019/20 China ADR Listings
- Potential Trade Ideas - Asia-Pacific Companies that May Access Capital Markets
For upcoming IPOs, we are hearing that WeDoctor has already picked its bookrunners for the deal and that they will probably look to launch their IPO in the second half of the year. The company is said to be looking to raise US$1bn and could be valued up to US$10bn.
As markets held up better this week, deals are finally starting to move along. Akeso was reported to seek listing approval for its Hong Kong IPO as early as this week while there were two new Hong Kong IPO filings, Radiance Holdings (real estate developer) and Redsun Services (property management service provider).
This week, Ke Yan, CFA, FRM also shared his thoughts on Kintor's valuation for its upcoming IPO and WuXi AppTec Co. Ltd. (2359 HK)'s proposed A and H-share US$1.7bn private placement.
Accuracy Rate:
Our overall accuracy rate is 73.5% for IPOs and 65.2% for Placements
(Performance measurement criteria is explained at the end of the note)
New IPO filings this week
- Radiance (US$500m, Hong Kong)
- Redsun Services (US$100m, Hong Kong)
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.
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