Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

Cheerwin Group IPO: Doing Its Best to Innovate, Diversify and Grow in a Mature Market

Cheerwin IPO: Fairly Valued Compared to Recent IPOs in the Household, Personal and Pet Care Markets

JD Logistics IPO: Margin Improvement Likely with Expanding External Revenues and Falling Costs

Suzhou Basecare Medical IPO Valuation: Attractive Even at the Upper End of the IPO Pricing

New Horizon Health IPO Trading Update: A Blockbuster IPO but It’s Time You Plan an Exit Strategy

SciClone Pharmaceutical IPO: Future Prospects for Zadaxin Troubling

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Kuaishou IPO Trading Update: Further Upside Seems Limited; We Are Looking for Exit Points

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Sciclone Pharmaceuticals / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/sciclone-pharmaceuticals-holdings-limited" target="_blank" data-smartkarma-citation="entities:17351:1" rel="noopener">Sciclone Pharmaceuticals (6600 HK)</a> , a biopharmaceutical company with an integrated platform for product development and commercialisation has filed for an IPO on the Hong Kong Stock Exchange. The company has set the terms for its IPO, where it plans to issue approx. 116m shares at an indicative IPO price range of HK$17.2-18.8 per share to raise about HK$1.9-2.0bn (approx. US$240-263m).The company plans to use about 30% of the net IPO proceeds on potential acquisition of drug targets in China or in other global markets and funding the in-licensing of new drug candidates. SciClone also plans to use 28% of the net proceeds on repaying its existing debt and the remainder will be spent on the development and commercialisation of clinical-stage product candidates, fund ongoing clinical studies, recruitments and other general corporate purpose and working capital needs.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 134.0pt;">SciClone Pharmaceuticals IPO Details</td></tr>
<tr>
<td style="width: 50.0pt;">No. of Shares Issued</td>
<td style="width: 84.0pt;">                                                 115,984,500</td>
</tr>
<tr>
<td style="width: 50.0pt;">IPO Price per Share (HK$)</td>
<td style="width: 84.0pt;">17.2-18.8</td>
</tr>
<tr>
<td style="width: 50.0pt;">Offer as a % of Outstanding Shares</td>
<td style="width: 84.0pt;">17.11%</td>
</tr>
<tr>
<td style="width: 50.0pt;">Total Shares Outstanding (m)</td>
<td style="width: 84.0pt;">                                                 677,874,263</td>
</tr>
<tr>
<td style="width: 50.0pt;">Net Proceeds (HK$m)</td>
<td style="width: 84.0pt;">1,861.3-2039.5</td>
</tr>
<tr>
<td style="width: 50.0pt;">Market Capitalisation (HK$m)</td>
<td style="width: 84.0pt;">11,659.4-12,744.0</td>
</tr>
<tr>
<td style="width: 50.0pt;">Enterprise Value (HK$m)</td>
<td style="width: 84.0pt;">12,725-13,810</td>
</tr>
</tbody></table><div class="content-caption">Source: Company Disclosures, LSR (enterprise value is after adjusting for net debt as of Sep 2020 and net proceeds from the IPO)</div>In our previous insight on the company’s IPO, we discussed SciClone’s business model, segments and financials. We highlighted that though the company’s proprietary product Zadaxin enjoys the first mover advantage (as the first branded thymalfasin drug) in China, we remain concerned about the future prospects for Zadaxin if it is chosen for volume-based procurement catalog in China.

Sciclone Pharmaceuticals (6600 HK) , a biopharmaceutical company with an integrated platform for product development and commercialisation has filed for an IPO on the Hong Kong Stock Exchange. The company has set the terms for its IPO, where it plans to issue approx. 116m shares at an indicative IPO price range of HK$17.2-18.8 per share to raise about HK$1.9-2.0bn (approx. US$240-263m).The company plans to use about 30% of the net IPO proceeds on potential acquisition of drug targets in China or in other global markets and funding the in-licensing of new drug candidates. SciClone also plans to use 28% of the net proceeds on repaying its existing debt and the remainder will be spent on the development and commercialisation of clinical-stage product candidates, fund ongoing clinical studies, recruitments and other general corporate purpose and working capital needs.
SciClone Pharmaceuticals IPO Details

No. of Shares Issued
                                                 115,984,500


IPO Price per Share (HK$)
17.2-18.8


Offer as a % of Outstanding Shares
17.11%


Total Shares Outstanding (m)
                                                 677,874,263


Net Proceeds (HK$m)
1,861.3-2039.5


Market Capitalisation (HK$m)
11,659.4-12,744.0


Enterprise Value (HK$m)
12,725-13,810

Source: Company Disclosures, LSR (enterprise value is after adjusting for net debt as of Sep 2020 and net proceeds from the IPO)In our previous insight on the company’s IPO, we discussed SciClone’s business model, segments and financials. We highlighted that though the company’s proprietary product Zadaxin enjoys the first mover advantage (as the first branded thymalfasin drug) in China, we remain concerned about the future prospects for Zadaxin if it is chosen for volume-based procurement catalog in China.

SciClone Pharmaceuticals IPO Valuation: Not Pleasing