ECM Weekly (7th November 2021) - KakaoBank, Ventia, Paytm, Mitratel, SF Intra-City, Sapphire Foods

Events next week:

We got a small respite with various IPO debuts this week before the final sprint to the end of the year. Hong Kong IPOs have not been doing well. The three debuts this week broke deal price and only Shanghai MicroPort MedBot Group (2252 HK) managed to claw back to trade above its IPO price. This was only after the deal was downsized significantly.

• MicroPort MedBot IPO Trading - Decent Demand But Upside Is Limited from the Top-End
• Beijing Airdoc (北京鹰瞳科技) IPO Trading - Poor Demand but Could Still Do Well
• Clover (三叶草生物) IPO Trading: Level for Accumulation

We initiated on SF Intra-City (1874747D CH), the intra-city on-demand delivery arm of SF Holding, which was reported to be seeking approval from Hong Kong exchange soon, and Shukun (Beijing) Technology (1702626D CH), a China-based AI-assisted medical imaging solution company.

• SF Intra-City (顺丰同城) Pre-IPO - Growing Unsustainably Fast with a Glaring Lack of Disclosure
• Shukun Technology (数坤网络科技) Pre-IPO: Promising AI-Assisted Diagnosis

Australian IPOs traded within our expectations. Judo Capital (JDO AU) managed to post a modest 9% return in its first week of trading whereas Vulcan Steel (VSL AU) had a bit of shaky debut before closing 4.9% above IPO price on Friday.

• Judo Bank IPO Trading - Strong Demand for a Fast-Growing Bank Serving a Niche
• Vulcan Steel Limited IPO Trading - Don't See a Reason for Paying a Premium

We initiated on Ventia (VNT AU) , an essential infrastructure services provider, which is looking to open books on 15th November and debut on 19th November.

• Ventia IPO - At Your Service, Everywhere
• Ventia IPO - Strong Revenue Visibility, Valuation Appears Reasonable

In Korea, Kakao Pay (377300 KS) managed to trade well despite the delays and closed 114% higher on its first day and closed 84% above its IPO price on Friday.

• Kakao Pay IPO Trading - Won't Be Chasing

Debuts aside, KakaoBank (323410 KS) six-month IPO lock-up expiry was due this week and we estimated that there will be about 20m shares that will be freed up.

• Kakao Bank Lock-Up - Watch Out for Netmarble Led Blocks

In Indonesia, we re-visited Mitratel (1319Z IJ)'s IPO and shared our thoughts on updates since bookbuild launch and index fast entry inclusion requirements. The IPO was reported to be priced at IDR800 per share, close to the bottom end of the price range.

• Dayamitra (Mitratel) IPO - Quick Note - Updates and Index Inclusion

In India, Sumeet Singh shared his final thoughts on valuation of Paytm (PAYTM IN)'s IPO.

• Paytm IPO - Still Needs a Whole Lot of Hope to Justify Valuation. Index Might Hold It up Briefly
• Sapphire Foods IPO - Delivery Growing, Stores Shrinking

Last, but not least, tearsheet for the week:

• Thai Life Insurance Pre-IPO Tearsheet
• Quwan Holding Limited Pre-IPO Tearsheet