ECM Weekly (8 September 2018) - Qutoutiao, Viomi, 111 Inc., Meituan, Haidilao

Next week will be an exciting week for the ECM space as a few key IPOs will list beginning with 111 Inc (YI US) and NIO Inc (NIO US) which are expected to price on Tuesday, 11th September, and likely start trading the day after. So far, we heard that books have been covered since earlier this week but nothing on whether it is oversubscribed. The performance of these IPOs will likely set the tone for the subsequent Chinese ADR listings this and next quarter such as Qutoutiao Inc (QTT US), which will list on Friday, and the much anticipated Tencent Music which we heard will likely list in October.

Beyond that, in Hong Kong, China Chunlai Education (1969 HK) will be braving the China education storm by being the first to list after the proposed change in the law. Hong Kong-listed education stocks have mostly been smashed, especially the recently listed Hope Education Group Co Ltd (1765 HK). The company will be listing on the 13th of September.

Hua Medicine Ltd (2552 HK) is also looking to go against the odds after the spectacular crash of Ascletis Pharma Inc (1672 HK) last month. In Ke Yan, CFA, FRM 's insight, he explained that the IPO valuation is priced to perfection and leaves little upside for a company with just a single drug that is undergoing Phase III clinical trial.

We are hearing that Sichuan Haidilao Catering (0172918D HK) will be launching its bookbuild next Monday and other IPOs doing their pre-marketing rounds are China Renaissance Holdings (US$500m), Midea Real Estate (Hong Kong, US$500m), and Osotspa Energy (Thailand, US$600m). Lodha Developers (LODHA IN) is also expected to launch a smaller IPO this month. In the U.S., other IPOs in the pipeline are LAIX Inc (LAIX US) , X Financial (XYF US) , Viomi Technology Co Ltd (VIOT US) , and Studio City.