Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of IPO & Placements for Aequitas Research. At Aequitas we cover all IPOs and placements across Asia-Pac with a deal size of at least US$100m. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%. 
Prior to Aequitas. I was heading Content Strategy for Smartkarma, along with covering IPOs & Placement. In an earlier life I have covered ASEAN property and the banking space in India.

Head of Research, IPOs & Placements

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Aag Energy Holdings / Equity Capital Markets

Asian American Gas Energy (AAG) plans to raise US$400m through&nbsp;its IPO, to further develop and explore its two Coal Bed Methane (CBM) assets .The deal scores a marginally positive score on our framework with most of it&nbsp;stemming from well over half the book being covered by cornerstones, combined with the fact that valuations at lower and middle end appear reasonable. While the government has been trying to increase the usage of gas in China's energy mix, which augurs well for the companies long term prospects, however, we note that the government's efforts&nbsp;seem to have hit a wall with lower oil prices, which has made gas in China noncompetitive, and thus, the sector has been out of favor with investors for the past year. This might limit potential upside from the IPO. In addition, mid-cap HK IPOs too have had a mediocre run, and this being a second attempt at listing for AAG, it doesn't augur well for potential returns.&nbsp;On the whole we remain lukewarm on the deal and would be inclined to take the deal towards the lower to mid end, but we would expect limited upside.

Asian American Gas Energy (AAG) plans to raise US$400m through&nbsp;its IPO, to further develop and explore its two Coal Bed Methane (CBM) assets .The deal scores a marginally positive score on our framework with most of it&nbsp;stemming from well over half the book being covered by cornerstones, combined with the fact that valuations at lower and middle end appear reasonable. While the government has been trying to increase the usage of gas in China's energy mix, which augurs well for the companies long term prospects, however, we note that the government's efforts&nbsp;seem to have hit a wall with lower oil prices, which has made gas in China noncompetitive, and thus, the sector has been out of favor with investors for the past year. This might limit potential upside from the IPO. In addition, mid-cap HK IPOs too have had a mediocre run, and this being a second attempt at listing for AAG, it doesn't augur well for potential returns.&nbsp;On the whole we remain lukewarm on the deal and would be inclined to take the deal towards the lower to mid end, but we would expect limited upside.

Future prospects might be good but remain a long way off. We remain lukewarm on the deal.