ECM Weekly (4 October 2020) - JD Health, MINISO, Everest Med, Weihai Comm Bank, JD Digits
Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Hong Kong continues its steady stream of IPOs. This week Weihai City Commercial Bank (WECCBZ CH) and Everest Medicines (1952 HK) launched their IPO bookbuilds. We covered them in:
- Weihai City Commercial Bank IPO - Needs to Trade 30-50% Lower to Be In-Line with Peers
- Everest Medicines (云顶新耀) IPO: Overvalued for the Portfolio but Sentiment Is Strong
Pipeline still looks strong considering that JD Health (JDH HK) and the troubled Evergrande Real Estate Group (3333 HK)'s property management arm filed their draft prospectus with the Hong Kong Exchange. We covered JD Health and other upcoming IPOs in:
- JD Health (京东健康) Pre-IPO - Well-Positioned to Ride China’s Healthcare Digitalization
- JD Digits: Dependence on JD.com - A Bottleneck
- MINISO (名创优品) Pre-IPO - Store Walkthrough - Co-Branding Allows for Stronger Pricing
IPO debuts this week have generally done well too. ZTO Express (ZTO US) and Zai Lab Ltd (ZLAB US) both traded well, holding above deal price whereas Baozun Inc. (BZUN US) failed to, largely due to being priced at a narrow discount despite of its large dilution. In India, Computer Age Management Services (CAMS IN) listing did well despite its expensive valuation. Its strong insti and HNI subscription relative to recent larger IPOs have been a good indicator. In the U.S, Chindata (CD US) priced at the top end and closed 20% on the first day but has since then retraced to just about 3.7% above IPO price.
- Baozun HK Secondary Trading - Weakest Link of the Current Lot
- ZTO Express Secondary Trading - Insti Little Weaker, Retail Little Stronger but Doing Well so Far
- Zai Lab HK Trading - Interest and Behaviour in Line with Huazhu, Highest Concentration so Far
- Computer Age Management IPO Trading - One of the Highest Subscriptions Driven by Insti and HNIs
- Neuedu (东软教育) IPO Trading: Fairly Valued
- Chindata Group IPO Trading - Would Book Profits if It Trades at a Premium
Placements this week:
Accuracy Rate:
Our overall accuracy rate is 73.1% for IPOs and 66.4% for Placements
(Performance measurement criteria is explained at the end of the note)
New IPO filings this week
- Jacobio Pharma (US$400m, Hong Kong)
- Evergrande (US$1bn, Hong Kong)
- JD Health (US$1bn, 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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- ECM Weekly (25 October 2020) - Ant Group, Lufax, JW Thera, Shimao Svcs, GDS Secondary, Nanofilm25 Oct 2020
- ECM Weekly (18 October 2020) - Lufax, Simcere, KWG Living, GDS, Jacobio18 Oct 2020
- ECM Weekly (11 October 2020) - Excellence Comm, MR DIY, Converge ICT, Simcere, SciClone, JW Thera11 Oct 2020
- MINISO (名创优品) Pre-IPO - Store Walkthrough - Co-Branding Allows for Stronger Pricing03 Oct 2020
- JD Health (京东健康) Pre-IPO - Well-Positioned to Ride China’s Healthcare Digitalization29 Sep 2020
- ECM Weekly (27 September 2020) - Ant Group, Chindata, SCG Packaging, JHBP/Genor, Neuedu, UTI AMC27 Sep 2020