ECM Weekly (2nd May 2021) - JD Logistics, Powergrid InvIT, Shanghai Hanyu, Monde Nissin, Hello Inc

Asia IPO pipeline continues to build up with multiple new filings. Zomato filed its draft prospectus in India and Del Monte Philippines in the Philippines, looking to raise US$1bn and US$790m, respectively. In the U.S, Hello Inc (last Friday), Ximalaya, Qiniu Cloud filed with the SEC. The former two companies are looking to raise about US$1bn each while Qiniu Cloud is likely targeting a US$500m IPO. Hong Kong had a number of filings with R&F Property Services being the notable one, looking to raise US$700m.

JD Logistics, SF REIT, Edding Group, and New Hope Service have won approval for their Hong Kong listings. JD Logistics was aiming to raise US$4bn and should start premarketing this coming week. SF REIT got its approval last week and filed its PHIP last Sunday. It is looking to raise US$300m and will likely launch its bookbuild next week. The latter two are expected to raise up to US$300m and US$150m, respectively.

• Edding Group (亿腾医药) Pre-IPO: Distributor Turning Pharmaceutical

• Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party

• JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War

• JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond

• JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation

• SF REIT Pre-IPO - One Trick Pony, Who’s Not Doing the Trick

Hong Kong placement deal flow slowed (naturally) from a record last week. Wuxi Biologics Holdings came back to the market to sell another block ahead of its stipulated lock-up from January this year. The selldown was largely expected. Other placements in Hong Kong included Tsingtao Brewery Co Ltd H (168 HK) and Fuyao Glass Industry Group (3606 HK). In the Philippines, AC Energy Corp (ACEN PM)'s re-IPO was priced close to the low-end. The deal will trade on 14th May.

• Wuxi Biologics Placement - Market Is Likely Well-Positioned for the Selldown

• Tsingtao Brewery Placement - Fosun Is Back Again, Settling into a Pattern

• Fuyao Glass Placement - Expected Deal but Expensive Valuation

• AC Energy Re-IPO - Lots of Moving Parts, Needs the Dust to Settle

In Hong Kong, we wrote on Shanghai Hanyu Medical Technology (SHM HK), a leading player in the mitral valve devices market. While the company has a huge market potential, it had a weak investor line-up and lack of management experience .

• Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time

Zhaoke Ophthalmology Pharmaceutical (6622 HK) debuted below its IPO price on Thursday despite having a decent cornerstone line-up. It closed 25% below IPO price on Friday.

• Zhaoke Ophthalmic (兆科眼科): Could Be Over-Valued for Pre-IPO Round

• Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation

• Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Beware of Aggressive “Guidance”

• Zhaoke Ophthalmic (兆科眼科) IPO: Rationalize the Valuation

• Zhaoke Ophthalmic (兆科眼科) IPO Trading: Strong Cornerstone Doesn’t Save the Deal

For China ADRs, we initiated on Hello Inc (1883864D US). The company operates a mobile app, Hello, which provides local services that includes two-wheeler services and a carpooling market place.

• Hello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable

In India, Powergrid Infrastructure Investment Trust (1883964D IN) launched its IPO bookbuild on Thursday. Books will close on Monday and shares will trade on 17th May.

• POWERGRID InvIT Pre-IPO - Always going to be tricky with a declining yield

• POWERGRID InvIT IPO - Assets Are Fine, Declining Yield Is Not

In the Philippines, Monde Nissin Corp’s (0191881D PM) has started premarketing. We compared its meat alternative business with global competitors and shared our thoughts on valuation.

• Monde Nissin Pre-IPO - The Positives - High Market Share

• Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA

• Monde Nissin Pre-IPO - Peer Comparison for Food Business

• Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business

• Monde Nissin Pre-IPO - Thoughts on Valuation

Credits to Clarence Chu for helping out with the note.