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Smartkarma: ECM Coverage Weekly Update (1 September 2017)

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.

It's a long weekend for everyone in Singapore!

We are starting to see ECM activity ramp up this week and will likely continue as we get closer to the 4th quarter of 2017. This week was peppered with placements while IPOs start to creep up with Sisram Medical launching this week and Dixon Tech and Bharat Road launching next week.

Ongoing Placements:

Yangzijiang Shipbuilding (YZJSGD SP)'s US$157m placement raised eyebrows because the company is in a net cash position and could just utilize bank borrowings to fund any potential acquisition. As a result, share price quickly fell through the deal price of SGD1.53. However, we give the benefit of the doubt that the management will make accretive acquisitions given its good track record. After Thursday market close, it was announced that Ren Letian, CEO of Yangzijiang, bought 2m shares of the company in open market at an average price of SGD1.508 which will potentially give some short term price support.

Ain Holdings Inc. (9627 JP) priced its placement at JPY7,760 per share at a 3% discount to 30th August close price. Its share price is currently holding up well now, trading about 3.7% above deal price. We were positive on the company because it was an extended deal and valuation is reasonable relative to peers. 

Reliance Worldwide Corp Ltd (RWC AU) 's chairman, Jonathan Munz, sold 20% of the company's total outstanding shares. We are negative on the deal mainly because of its expensive valuation relative to peers and the fact that the family cashed out just days after being released from escrow, seeming a little too eager to capture its 52-week high price. While share price held up well the day after placement, it has corrected significantly on Friday and it is just 1.4% above deal price.

China Sce Property Holdings (1966 HK) is a small property developer in China focusing on Tier 1 and Tier 2 cities. It raised about US$170m with its upsized option fully subscribed. Share price is currently holding up very well, about 5.5% above deal price.


Sisram Medical Ltd (1696 HK) just launched its IPO on Thursday and will be closing next Friday. We will be putting a note out on the company next week. Mitsubishi Estate Logistics REIT will close next Tuesday too.

Accuracy Rate:

Our overall accuracy rate is 73% for IPOs and 62.7% for Placements.

(Performance measurement criteria is explained at the end of the note)

New IPO filings this week

  • China Education Group (Hong Kong, US$300m)

Below is a snippet of our IPO tool on upcoming events for the next week. Our IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

Source: Smartkarma

News on Upcoming IPOs

  • Chinese Celebrity-Backed Fintech Firm Is Said to Pick IPO Banks
  • AirAsia Seeks Back-Door Listing on Indonesia Stock Exchange
  • TOA Paint sniffs out $400m Thai IPO 
  • Subsidiary of PTPP to Hold IPO by November 2017
  • Logistics firm plans to raise P5B via IPO

List of pre-IPO Coverage on Smartkarma

Name Insight
Hong Kong
AAB International AAB International Pre-IPO Review - Stuck with a Dirty Diaper 
Cenmintang Cenmintang IPO Preview: A Beverage and Snack Play Whose Growth Is Hard to Grasp
China Feihe China Feihe IPO Preview: Goat Bless Infant Formula Milk?
China New Uni China New University IPO Preview: Track Record and Focus Attractive
China Literature China Literature IPO Preview: Time to Monetize Its Rich Content Library
Bank of Jiujiang Scraping the Bottom of the Barrel: Bank of JiuJiang
Razer Razer Pre-IPO Review - For Gamers. By Gamers. But, Is It for Investors?
Shandong Int'l Trust Shandong Int'l Trust Pre-IPO - Faltering Growth and Profitability Despite Aid from Prop Book
Zhongan Insurance ZhongAn Insurance IPO Preview: How Long Will Early Bird Advantage Last? (Part 1)
Zhongan Insurance ZhongAn Online P&C Insurance IPO Preview: How to Justify Its Valuation (Part 2)
South Korea
Bodyfriend Bodyfriend IPO Preview: Part I (Goodbye Osim, Hello Bodyfriend) Bodyfriend) 
CJ OliveNetworks CJ OliveNetworks - On A Fast Track to an IPO in 2017? 
Data Solution Datasolution IPO Summary - Questions Remain on Growth, but Market Seems Excited
Gentle Monster Gentle Monster IPO - A Monster Growth

IsMedia IPO Summary - Smartphone Camera Tester Maker

Korea Exchange Korea Exchange IPO - Question Is When, Not If
Outin Futures Outin Futures Corp IPO Preview (Part 1),  Valuations (Part 2)
Woowa Bro Woowa Brothers Corp IPO Preview (Part 1) - The Most Popular Food Delivery Service in Korea
V-One Tech V-One Tech IPO Summary - Another OLED Stock IPO,  IPO Bookbuilding Results
Matrimony Pre-IPO Review: Impressive Operating Performance but Legal Concerns Loom
NSE National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some
NSE NSE IPO Preview- Not Only Fast..its Risky and Expensive
United States 
Best Inc. Best Logistics Technologies Reportedly Prepares for $1bn+ IPO
Best Inc. Best Inc IPO, Part 2 of 2: Valuation Versus Chinese Express Peers

This insight is part of Smartkarma. For more follow this link.

This post first appeared on Smartkarma | Intelligent Investing, please read the originial post: here

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Smartkarma: ECM Coverage Weekly Update (1 September 2017)


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