ECM Weekly (6 December 2020) - Blue Moon Group, Pop Mart, HBM, Burger King India, and More

Starting off with IPOs in Hong Kong first, Harbour Biomed (2142 HK), POP MART (POP HK), and Blue Moon Group Holdings (BMG HK) opened their bookbuild on Monday (for the former two) and Friday, respectively, whereas we are hearing that Netjoy (NETJOY HK) and Sino-Ocean Service (1827597D HK) will be coming next week. Pop Mart closed its bookbuild a day early, citing strong demand.

• Blue Moon Group IPO - Not a Clean Wash
• Pop Mart IPO - Making You Pay Well for Growth
• Netjoy (云想科技) Pre-IPO: Growth Stalled for the Short Video Marketer
• Sino-Ocean Services (远洋服务) Pre-IPO - Nothing Stands Out
• HBM (和铂医药) IPO: Strong Cornerstone Not a Performance Guarantee

In India, Burger King India (BKI IN) finally launched its IPO, more than a year after it filed its Draft Red Herring Prospectus. While the company was not offered at a cheap valuation, it still has a long growth runway. Sumeet Singh also took the chance to visit some of Brookfield India Real Estate Trust (BIREIT IN) properties.

• Burger King India IPO - Can Still Grow Fast
• Brookfields India Real Estate Trust Pre-IPO- Gurgaon Site Visit Takeaways

In the U.S, Ke Yan, CFA, FRM covered 17 Education and Technology (YQ US) valuation which we thought didn't exactly stand out in terms of growth and had the worst cost structure. Sumeet Singh took some time off looking at APAC IPOs to understand the Airbnb Inc (9865065Z US) and shared his thoughts in:

• Airbnb IPO - Time for a Good Break - Even from the Share Lock-Up
• 17 Edu & Tech (一起教育) IPO: Inferior Cost Structure, Overvalued Deal

For trading debuts this week, Evergrande Property Services (6666 HK) traded flat which was well within expectations. What was surprising was the fact that the company/bookrunners looked to close books a few hours early last week to maybe draw out some FOMO bids by maybe implying that demand was strong. But in actual fact, as per our trading note, demand wasn't great.

• Evergrande Services (恒大物业) IPO Trading - Slightly Weaker Demand

17 Education and Technology (YQ US) traded higher intraday but closed just 0.7% above deal price whereas Nuix (NXL AU) closed about 50.8% higher than its IPO price. Nuix will probably still need some time to find its footing since Friday's trading was on a deferred settlement basis whereas settlement will happen coming Monday and normal settlement trading will begin the day after.

• Nuix Limited IPO Trading - Aiming for a Modest Debut

Last, but not least, there had been a surge in placement/follow-on offering by companies and shareholders. The common theme across these deals had been that they were mostly opportunistic. Shareholders looked to cash in on their positions whereas companies sought to lock in more cash as share price traded higher.

• Li Auto (理想汽车) Placement - Opportunistic but Still a Worth a Bet Among EV Peers
• Longfor Placement - Chairwoman/Co-Founder Selling in the Mix
• Dada Nexus (达达集团) Placement - Proving Its Worth; Traded Well Since IPO
• Recruit Holdings Placement - Another Major Selldown But, This Time, with a Much Shorter Time Frame
• GLP J-REIT Placement - Already Back for More but Still Getting Good Accretion
• Yeahka (移卡) Placement - Selling Just as Lock-Up Expires
• Xiaomi Placement - Price Back to Where It Was in Sept. This Time, It's Different.
• ANA Holdings Placement - Bigger but Not Necessarily Better Deal than JAL