Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Smartkarma

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Wenzhou Kangning Hospital / Equity Capital Markets

Following our fellow healthcare expert Kemp's note on <a href="http://www.smartkarma.com/insights/an-interesting-sub-sector-but-do-the-numbers-work" target="_blank">Wenzhou Kangning</a> Hospital, the company recently launched its IPO to raise US$73-88m for expansion.In this insight, we cover the following topics:<ul><li>Kemp has earlier pointed out the lack of data transparency. We have done further work and uncovered important development that isn't highlighted by book runners. </li><li>We put the deal through our framework and it rates borderline for participation  </li><li>We note that recent deals like Obstetrics and Gynaecology (O&amp;G) specialist hospital Harmonicare (1509 HK) has not done well since its IPO.  </li><li>Overall we think the risk reward profile of the IPO does not justify participation. </li></ul>More folds below...

Following our fellow healthcare expert Kemp's note on Wenzhou Kangning Hospital, the company recently launched its IPO to raise US$73-88m for expansion.In this insight, we cover the following topics:Kemp has earlier pointed out the lack of data transparency. We have done further work and uncovered important development that isn't highlighted by book runners. We put the deal through our framework and it rates borderline for participation  We note that recent deals like Obstetrics and Gynaecology (O&amp;G) specialist hospital Harmonicare (1509 HK) has not done well since its IPO.  Overall we think the risk reward profile of the IPO does not justify participation. More folds below...

Kangning Hospital IPO: Unique? Yes. Deserving of a Premium? No.