ECM Weekly (9 Nov 2019) - Phoenix Tree, I-Mab, Tyro Payments, Pharmaron, Heaven-Sent

Hong Kong IPOs' performance was mixed this week. ESR Cayman (1821 HK)'s struggled to hold above its IPO price after an strong debut while Changsha Broad Homes (2163 HK), which just got listed on Wednesday, is already trading 7% below its IPO price. On the other hand, Shanghai Kindly Instrument-H (1501 HK) closed 29% above its IPO price on the first day of trading.

Next week, Sinomab Bioscience Ltd (3681 HK) and China Feihe (6186 HK) will listed on the 12th and 13th of November respectively. Pharmaron IPO has been approved and filed its PHIP while Heaven-Sent Gold Group has already launched its IPO bookbuild. Ke Yan, CFA, FRM share his thoughts on valuation for both IPOs in:

• Heaven-Sent Gold (硅谷天堂黄金) IPO: An OTM Option
• Pharmaron (康龙化成) A+H Listing: 3Q2019 Numbers and Thoughts on Valuation

China ADRs listings have been pushing through with their IPOs at lower valuation as seen from Ecmoho (MOHO US), 36Kr Holdings (1753455D US) and Q&K International (QK US)'s much smaller deal size than initially filed. This doesn't bode well for new IPO filings like YX Asset Recovery (YX US), which we hear is premarketing for its IPO, Phoenix Tree, I-Mab, Ehang and etc.

• Phoenix Tree (Danke) Pre-IPO - Another WeWork - Nothing Is Improving Apart from Revenue
• I-Mab (天境生物) Pre-IPO: Strong Management and Investor Backing with Differentiated Products

In other markets, we are also hearing that Bangkok Commercial Asset Management (BAM) is starting its premarketing this month after getting regulatory approval for the IPO in October. There were also reports that Sri Trang Gloves will look to IPO in 1H 2020.

In Australia, despite the setbacks, Tyro Payments (TYRO AU)'s IPO is looking promising so far as Sumeet Singh analyzed the company's business model and track record in:

• Tyro Payments IPO - A Lot to like Apart from Its Earnings Profile and Churn Rate