ECM Weekly (9 August 2020) - KE Holdings, Pop Mart, Everest Med, KWG Living, E-Star Comm

Hong Kong IPOs continue its strong performance with Hangzhou Tigermed Consulting (H) (3347 HK) closing 13% above its IPO price in its Friday's debut. As far as we know, there will not be any IPO bookbuild launching next week but we are hearing that Nongfu Spring (NON HK) is seeking from HKEX next week and is aiming for a September listing.3

• Tigermed (泰格医疗) A+H Trading: Insti Buying to Continue Post Listing

There is likely to be a another wave of China ADRs secondary listing coming to Hong Kong. There were news reporting that TAL Education (TAL US) and Gds Holdings (Adr) (GDS US) are making preparations. GDS has already picked banks to start the process whereas TAL has just begun preparations and listing may still come to market as early as this year. Meanwhile, Yum China Holdings, Inc (YUMC US) may launch its secondary listing next month.

Our coverage of upcoming Hong Kong IPOs this week:

• Pop Mart Pre-IPO - Peer Set and Valuation
• Everest Medicines (云顶新耀) Pre-IPO: License-In Specialist Led by Biotech Investors
• KWG Living (合景悠活) Pre-IPO - Strong Growth and Margin Expansion but Overly Reliant on KWG Group
• E-Star Commercial Management Pre-IPO - Better Disclosure in New Prospectus

In the US, activity seemed to be ramping up again. Xpeng Motors filed its prospectus with the SEC. Earlier reports mentioned that the company will likely be raising at least US$700m in its IPO. Aside from that, KE Holdings Inc (BEKE US) announced its price range on Friday. Sumeet Singh already shared his thoughts on valuation and peers:

• KE Holdings/​​Beike Pre-IPO - Thoughts on Valuation, Rumoured Valuation Might Be a Stretch
• KE Holdings/​Beike Pre-IPO - Recent Updates, Peer Comparison

Next week we will also be keeping a close eye on Areit (AREIT PM) a trading debut in Philippines, respectively. AREIT's listing performance is particularly important since it is the first REIT listing in the country and will likely set the tone for subsequent REIT listings. Whereas in India, Mindspace Business Parks REIT (MBP IN) debuted well on Friday, closing 10% above its IPO price. Sumeet Singh shared his thoughts on the trading debut:

• Mindspace Business Park REIT Trading Update - Much Better Debut that Embassy

Placement activity was fairly active too with equity raise across Asia:

• Asahi Group Placement Tracker - No Signs of a Placement Even Though Net Debt to EBITDA Is at 8.2x
• HDFC Placement/Trade Idea - Here Comes the Big Daddy, Might Still Be Worth a Short Term Trade
• Alibaba Health Placement - A Few Headwinds but Multiple Tailwinds
• Hope Education (希望教育) Placement - 2019 Acquisitions Paid off and Finally Made a Comeback in 2020
• Axis Bank Placement - Jumping the Queue
• TOWR IJ Placement - Stock Has Had a Good Run but past Deals Haven't Been Great