ECM Weekly (31st October 2021) - Patym, PolicyBazaar, Nykaa, HeMo, Clover Bio, UJU, Airdoc, Mitratel

Events next week:

It's listings galore next week! There will be a debut every day spanning from Australia to Korea and India then back to Hong Kong to close off the week.

In Hong Kong, we took a final look at Clover Biopharmaceuticals (2197 HK), Beijing Airdoc Technology (2251 HK),Uju Holding (1948 HK), and ANE Logistics (1292621D CH) IPOs and shared our thoughts on valuation.

• Uju Holding IPO - Asking Valuation Is a Stretch
• Uju Holding IPO - Margin Compression Looks to Persist
• Beijing Airdoc (北京鹰瞳科技) Pre-IPO - New PHIP Updates
• Beijing Airdoc (北京鹰瞳科技) IPO - Reasonable Valuation for a Small Niche
• Clover (三叶草生物) Pre-IPO: Thoughts on Valuation
• Clover (三叶草生物) IPO: Valuation with a Margin of Safety
• ANE Logistics IPO - Weird Disclosures Continue

We also initiated on HeMo Bioengineering (HMB HK), a China-based interventional medical device company with a focus on neuro-vascular and peripheral diseases.

• HeMo Bioengineering (禾木生物工程) Pre-IPO: Signs of Lacking Innovation

India ECM busy as ever. FSN E-Commerce Ventures (Nykaa) (1003622D IN) and Policybazaar Insurance Web Aggregator (1569999D IN) launched their IPO bookbuilds. Nykaa will close its bookbuild on Monday and look to list on 11th November while PolicyBazaar will close its bookbuild on 4th November.

Paytm (PAYTM IN) will launch India’s biggest IPO the week after with anchor books closing on 5th November.

• Paytm (One 97) IPO - RHP Updates - Better Disclosures, Signs of Turning Around
• PB Fintech (Policybazaar) Pre-IPO - The Negatives - Patchy Data, Strategy Missteps
• PB Fintech (Policybazaar) IPO - Increasing Competition Will Keep Ad Spending High
• FSN E-Commerce (Nykaa) IPO - Beauty Showing Signs of Improvement but Its Too Expensive for Our Taste

In Australia, unfortunately, the much awaited SG Lottery (SGL AU) did not make it to its IPO. The company was acquired by Brookfield. For debuts, GQG Partners (GQG AU) opened higher on Monday but struggled to stay above IPO price for the rest of the week as expected.

• GQG Partners IPO Trading - Poor Liquidity, Trading Below IPO Price

Whereas APM (1934849D AT), an international human services provider company, closed its institutional bookbuild this week and will look to list on 16th November.

• APM Human Services IPO - Strong past Growth but Has Ample Unhappy Employees and Clients

Finally, in Indonesia, Mitratel (1319Z IJ) opened books for its IPO, looking to raise about US$1.3bn. We thought that valuation is attractive towards the low-end of the price range. Books will close this Thursday and list on 22nd November.

• Dayamitra (Mitratel) IPO - Decent Upside at the Low-End

Placements also kept us busy this week and they were sizable ones with deal size more than US$1bn, with the exception of China Yuhua Education (6169 HK). Overall, placement performance was shaky. Yuhua collapsed lower after breaking its deal price on trade date while Li Ning is also trading below its deal price. But we think that BYD and Macquarie should up well on Monday owing to favorable deal dynamics.

• Li Ning Placement - Momentum Remains Strong. Past Deals Have Done Well.
• China Yuhua Education Placement - Proceeds Will Be Put to Good Use
• BYD (比亚迪汽车) Placement - Should Cruise Through Smoothly
• Macquarie Group Placement - Similar to Its 2019 Placement Which Did Well

Last, but not least, tearsheet for the week:

• Wanda Commercial Management Group Tearsheet