ECM Weekly (7 February 2021) - Kuaishou, New Horizon, SciClone, Cloopen

More IPOs will likely rush to list in Hong Kong after seeing Kuaishou Technology (1024 HK)'s spectacular debut. If share priced had only doubled, valuation would be expensive but not exorbitant. But with the 161% gain on first day, share price could use a little breather. But momentum may not let up since there are expectations of passive flows buying in the near term.

• Kuaishou Technology IPO Trading - Might Be Doubling but Still Not near Bubbling
• Kuaishou IPO Trading - Bubbling Now, Spread Out Index Inclusion Might Keep It Going for a Bit

We are already expecting a handful of Hong Kong secondary listings and this week, there were news reports that Tencent Music (TME US) has selected banks for the listing, which could raise as much as US$5bn. There was also reports that said Naiyuki (Naixue Tea) is looking to list in Hong Kong with a US$500m deal size, a change from its initial US IPO plans.

• China ADRs Secondary Listing - Pipeline Looks Rich, Have Three Years to Move

IPO bookbuild launch this week include New Horizon Health (NHH HK) while we are hearing that Sciclone Pharmaceuticals, Inc (SCLN US) is premarketing after getting its approval from HKEX.

• New Horizon Health (诺辉健康) IPO: Room to Fly
• SciClone Pharma (赛生药业) Pre-IPO: PHIP Updates and Thoughts on Valuation

In India, Indigo Paints (INDIGOPN IN) and Home First Finance (HFF IN) traded well as expected while Brookfield India Real Estate Trust (BIREIT IN) closed its IPO bookbuild with 8x oversubscription rate. We covered the IPO last week:

• Brookfields India Real Estate Trust IPO - Not Very Convincing but the Yield Looks Tempting
• Indigo Paints (IP IN) | Channel Interactions Suggest a Differentiated Strategy
• Home First Finance IPO Trading - Hot Space but Limited Discount

Further away from home, in the US, Cloopen Group Holding Ltd (RAAS US) launched its IPO on Thursday and was already looking to close books early (a day later) citing strong demand. We shared out thoughts on the company as well as trade idea via Hi Sun Technology China (818 HK).

• Cloopen (容联.云通讯) Pre-IPO - Forecast, Assumptions, and Valuation
• Cloopen (容联.云通讯) Pre-IPO - Investments in Cloopen + Pax Global > Hi Sun Tech Market Cap
• Cloopen (容联.云通讯) IPO - Hi Sun Tech Angle Gets More Attractive

Last but not least, Thai Beverage (THBEV SP)'s beer unit is looking to premarket as early as March while Aztech (AZ SP) has already started pre-marketing its US$225m IPO and it is looking to launch in early March.

• ThaiBev Beer Brewery Pre-IPO/Spin-Off - Early Take - Aiming to Build an ASEAN Champion?
• ThaiBev Beer Brewery Pre-IPO/Spin-Off - Valuation Estimates and Implications

Placements this week:

• Jinxin Fertility (锦欣生殖) Placement - Setting up for Acquisitions
• Wuxi Biologics Placement - Laying the Groundwork for Future Growth