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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Equity Capital Markets

Sunway Construction Group Bh / Equity Capital Markets

Sunway Construction (SCGB) plans to raise US$120m in its IPO, through issuance of secondary shares.SCGB's order book declined over 2014, after posting decent growth in the preceding years. This means the stock is at its lowest revenue coverage ratio (order book/previous financial year revenue) since the past three years, and isn't exactly in a position of strength at the time of listing. To add to that, while the shares are at a discount to its larger more diversified peers, however, the IPO range is at a premium to its smaller/similar sized peers, owing to its parent banking on the stock becoming the largest pure-play contractor.In our view, given the lack of evidence of robust construction demand (order book declined again in 1Q15), combined with this being a secondary offering and hence, not really providing any performance triggers to SCGB (new money/expansion/acquisition etc), and valuations being fair (at best), we would avoid the deal.

Sunway Construction (SCGB) plans to raise US$120m in its IPO, through issuance of secondary shares.SCGB's order book declined over 2014, after posting decent growth in the preceding years. This means the stock is at its lowest revenue coverage ratio (order book/previous financial year revenue) since the past three years, and isn't exactly in a position of strength at the time of listing. To add to that, while the shares are at a discount to its larger more diversified peers, however, the IPO range is at a premium to its smaller/similar sized peers, owing to its parent banking on the stock becoming the largest pure-play contractor.In our view, given the lack of evidence of robust construction demand (order book declined again in 1Q15), combined with this being a secondary offering and hence, not really providing any performance triggers to SCGB (new money/expansion/acquisition etc), and valuations being fair (at best), we would avoid the deal.

No signs of turnaround in order book leads us to believe that the IPO is fairly valued - at best