ECM Weekly (29 November 2020) - JD Health, Evergrande Svcs, CR Svcs, Pop Mart, Nuix and More

It has been another busy week in the ECM space. There were a few big launches in Hong Kong. Evergrande Property Services (6666 HK) and China Resources Mixc Lifestyle Services (1209 HK) are the two latest property services companies to come to market with deal sizes of US$2bn and US$1.5bn. Both IPOs had substantial support from cornerstone investors. Evergrande Svcs's support came from a long list of China investors whereas CR Mixc pulled in reputable institutional heavy weights such as GIC, Hillhouse, Matthews Funds, CDH and etc.

• CR Mixc Lifestyle Services (华润万象生活) IPO - Needs Time to Prove Itself
• Evergrande Services (恒大物业) IPO - Overhang Issues

Then there was JD Health (6618 HK) US$3.5bn bookbuild launch which also drew interests from a few familiar names, GIC, Tiger Global, BlackRock, Hillhouse and etc. We discussed valuation, updates post Ali Health's results, and index implications in our notes:

• JD Health (京东健康) IPO - Ali Health 1H Results Read Through and Index Inclusions
• JD Health (京东健康) IPO - Paying to Ride the Early Innings of Healthcare Transformation

Other upcoming Hong Kong IPOs that will likely launch in the coming week includes POP MART (POP HK), Harbour Biomed (HMD HK), Sino-Ocean Service (1827597D HK) and Blue Moon Group Holdings (BMG HK) which we have covered them over the past few weeks, including updates from PHIP filing.

• Pop Mart Pre-IPO - PHIP Updates - Still Riding on past Expansion
• Pop Mart Pre-IPO - PHIP - Valuation Updates
• Sino-Ocean Services (远洋服务) Pre-IPO - Nothing Stands Out
• Blue Moon Group Pre-IPO - Valuation Updates
• HBM (和珀医药) Pre-IPO: Thoughts on Valuation

Last but not least, New Horizon Health (NHH HK), which Ke Yan, CFA, FRM has covered this week, will probably list some time next year and expecting to raise up to US$300m

• New Horizon Health (诺辉健康) Pre-IPO: A Hot Medical Device Deal in Making

In Australia, Nuix (NXL AU) will debut this coming Friday while Dalrymple Bay Infrastructure (DBI AT) is expected trade on the Tuesday the week after. We covered them in the two notes:

• Nuix Limited IPO - A Stable and Predictable Niche
• Dalrymple Bay Infrastructure - Highly Curious Timing

In India, sentiment is gearing to be ready for more IPOs, especially after the strong performance of Gland Pharma (7172753Z IN) last Friday. Burger King India (BKI IN) revealed its bookbuild details and anchor book will open on the 2nd of December. Aside form that, Sumeet Singh also covered Brookfield India REIT's fundamental, positives, and negatives in two notes.

• Brookfields India Real Estate Trust Pre-IPO - The Positives- Provides Different Geographic Exposure
• Brookfields India Real Estate Trust Pre-IPO- The Negatives- Asset Details Leave Questions Unanswered
• Burger King India Pre-IPO - Has Been Growing Fast and Plans to Grow Even Faster
• Burger King India Pre-IPO - Peer Comparison Yields Interesting Nuggets on Profitability and Capex

In the U.S, aside from the incredible rally of recently listed China EVs, there hasn't been much activity. 17 Education and Technology (YQ US) is the latest online tuition provider that is looking to raise up to US$300m. But a major decision will be made next week to decide whether Chinese firms need to comply with audit-oversight rules.

• 17 Edu & Tech (一起教育) Pre-IPO: Far from Profitability

Placements this week:

• China Hongqiao Placement - Deep Discount for a Big Deal
• ESR Cayman Placement - Back to Sell Again
• Bega Cheese Placement + Entitlement Offer - A Sensible Acquisition