ECM Weekly (29th August 2021) - Imeik, Helen’s, Jenscare, Dingdang, Simplex, Hyundai Heavy

Events next week:

It is still fairly quiet in the IPO space but Hong Kong's pipeline is swelling, likely heading for a very busy 4Q 2021. SenseTime, ClouDr, 58 Freight (GogoX), and Samoyed Cloud are the notable new filings this week.

Our Hong Kong IPO coverage this week was skewed towards Healthcare and Biotech companies. We initiated on Imeik Technology Development (300896 CH) (A/H listing), Ambio Pharmaceuticals (ABP HK), Jenscare Scientific (JCS HK), and Dingdang Health Technology Group (DDH HK) .

• Imeik Tech (爱美客) A/H Pre-IPO - Dermal Filler Leader Capitalizing on Its Valuation
• AmbioPharm (昂博制药) Pre-IPO: Peptide CDMO Leader Turning Licensor
• Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio
• Dingdang Health Tech (叮当健康) Pre-IPO - Impressive Growth but Not Without Concerns

We also shared our initial thoughts on Helen's International and Simplex IPOs in Hong Kong and Japan, respectively. The former had been pre-marketing this week, and likely to launch its IPO bookbuild next week while the latter will open books the week after on 7th September.

• Helens Intl (海伦司国际) Pre-IPO - Largest Bar Chain Targeted at Youths
• Simplex Holdings Pre-IPO - Steady Topline Growth but Appears to Be at Peak Margins

In India, we initiated on Aditya Birla Sun Life AMC (570499Z IN) which was approved by SEBI earlier this month.

• Aditya Birla Sun Life AMC Pre-IPO - Strong Profit Growth but It's Losing Market Share

However, recent Indian IPOs have failed to perform. CarTrade (CARTRADE IN) , Aptus Value Housing Finance India (APTUS IN), Nuvoco Vistas (NUVOCO IN) broke their respective IPO prices, mostly due to unattractive valuation.

• Aptus Value Housing Finance IPO Trading - Remains One of the Most Expensive HFCs
• Nuvoco Vistas IPO Trading - Tepid Demand
• Cartrade Tech IPO Trading - Decent Demand but It Remains Expensive

Back in Korea, Hyundai Heavy Industries (1748326D KS) opened its books on Thursday and was reported to have been covered a day later. We didn't think there is upside for the IPO based on valuation. On top of that, Korean shipbuilders have been trading weak lately, compared to Chinese shipbuilders. Books will close on Friday, 3rd September and it is expected to list on 16th September.

• Hyundai Heavy IPO - Expensive Valuation and Korea Shipbuilders Have Been Trading Weak
• Hyundai Heavy IPO - Sharp 1H21 Recovery Accompanied with a Surge in Costs

It was another busy week for placements. Some are long-dated; Activia Properties and Showa Denko will price on 1st and 6th September while OBIC, which we covered last week will price on Tuesday, 31st August.

• MR DIY Placement - Has Done Exceptionally Well Since Listing
• IDP Education Placement - Stock Is Expensive and Deal Is Big, but It Is Also Very Well Flagged
• Showa Denko Placement - Relatively Large Deal, past Deal Didn’t Do Well
• Activia Properties Placement - Accretive Deal but Comes with a Weak Backdrop