IFR - 07.07.2018

ASIA-PACIFIC

CHINA

CHINA TOWER STARTS PRE-MARKETING

Mobile phone infrastructure company CHINA

TOWER has started pre-marketing a Hong

Kong IPO of up to US$10bn, according to

people close to the deal.

Pre-marketing will last two weeks, and

bookbuilding is tentatively scheduled to run

from July 18 to 25.

One of the determining factors on whether

or not China Tower will open books as

planned is the debut performance of Chinese

smartphone maker Xiaomi next Monday.

China Tower, which could be valued at up

to US$40bn, is planning to raise US$8bn–

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CICC and Goldman Sachs are the joint sponsors.

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the world’s largest IPO since Chinese

e-commerce giant Alibaba raised US$25bn

from a US IPO in 2014.

China Mobile, China Unicom and China

Telecom set up China Tower in July 2014 to

be responsible for the construction,

maintenance and operations of their

telecommunications towers and

infrastructure across the country.

China Mobile holds a 38% stake in China

Tower, China Unicom has 28.1% and China

Telecom 27.9%. State asset management

lRMû#HINA2EFORMû(OLDINGûHASûAûûSTAKE

WALNUT STREET FILES FOR US$1bn IPO

WALNUT STREET GROUP, an online discounter

operating the Pinduoduo mobile e-commerce

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The American depositary shares will be

listed either on Nasdaq or the New York

Stock Exchange.

The Shanghai-based company’s revenues

REACHEDû2MBBNûM ûINûTHEûlRSTû

quarter of 2018 from Rmb37m a year

PREVIOUSLYûACCORDINGûTOûTHEûlLINGû,OSSESû

remained broadly steady at Rmb201m

versus Rmb207.7m a year earlier.

Pinduoduo was formed three years ago

ANDûINûTHEûlLINGûCLAIMEDûMûACTIVEûUSERSû

of its mobile platform, which allows

consumers to group together to increase the

discounts offered by merchants.

CICC, Credit Suisse and Goldman Sachs are

the bookrunners.

YANCOAL AUSTRALIA FILES IN HONG KONG

Coal miner YANCOAL AUSTRALIA has submitted

an application for a dual primary listing on

the Hong Kong stock exchange. The listing

could raise up to US$800m, according to a

person close to the deal. The company,

which is currently listed on Australia

Securities Exchange, said in a statement that

it would retain its Australian listing.

Current shareholders will be able to

participate in the Hong Kong capital raising on a

pro rata basis once the application is approved.

“Yancoal has applied for a dual listing in

the interests of increasing liquidity in

Yancoal’s shares and to help further

diversify Yancoal’s investor base,” Yancoal

chairman Baocai Zhang said.

Yancoal Australia shareholders have to

approve the listing proposal in September.

Shanghai-listed Yanzhou Coal Mining

owns 65.5% of Yancoal Australia and

supports the dual listing plan. The other

large shareholders are Cinda International

and miner Glencore, which hold respective

stakes of 16.7% and 6.8%.

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after tax of A$229m (US$169m) on revenue

of A$2.6bn. It operates four coal mines and

MANAGESûlVEûOTHERSûACROSSû.EWû3OUTHû

Wales, Queensland and Western Australia.

BOCI Asia, CMB International Capital and

Morgan Stanley are the joint sponsors for the

dual listing.

Last August, Yancoal Australia completed

a US$2.35bn rights issue as part of a

US$2.5bn stock offering to raise funds for its

US$2.69bn acquisition of Coal and Allied

Industries from subsidiaries of Rio Tinto.

E-HOUSE LAUNCHES HONG KONG IPO

E-HOUSE (CHINA) ENTERPRISE, a real estate

transaction service provider, has started

bookbuilding for a Hong Kong IPO of up to

HK$5.71bn (US$727m).

The company is selling 323m primary

SHARESûFORûAûûFREE

mOATûATûANûINDICATIVEû

price range of HK$14.38–$17.68 each.

There is a greenshoe of 48m primary shares.

WEEK IN NUMBERS

Three-year high
„ GLOBAL ECM ACTIVITY TOTALLED
US$403.2bn IN H1 2018, FLAT TO H1 2017
AND THE SECOND CONSECUTIVE FIRST
HALF TO SURPASS US$400bn. THERE
WERE 2,664 ECM OFFERINGS BROUGHT
TO MARKET, A 5% DECREASE ON H1 2017,
WHICH WAS THE LARGEST FIRST HALF FOR
GLOBAL ECM SINCE H1 1996. GLOBAL IPO
ACTIVITY HIT US$98.6bn, A 22% INCREASE
ON LAST YEAR AND THE STRONGEST
OPENING PERIOD FOR IPOs SINCE 2015

24%
„ AVERAGE YEAR-TO-DATE AFTERMARKET
RETURN FROM 90 US IPOs (NOT INCLUDING
SPACs) IN THE FIRST HALF OF 2018,
COMPARED WITH A S&P 500 RETURN OF
1.9% OVER THE SAME PERIOD. OF THE 90
IPOs, TECHNOLOGY AND BIOTECH WERE
THE HOTTEST SECTORS, REPRESENTING
18 AND 28 DEALS RESPECTIVELY, WITH
BANKERS EXPECTING MORE OF THE SAME
IN THE SECOND HALF

US$10bn
„ PRE-MARKETING HAS BEGUN FOR
A HONG KONG IPO OF UP TO US$10bn
FOR MOBILE PHONE INFRASTRUCTURE
BUSINESS CHINA TOWER. THE FLOAT
WOULD BE THE WORLD’S LARGEST SINCE
CHINESE E-COMMERCE GIANT ALIBABA
RAISED US$25bn FROM A US FLOAT IN
2014

US$1.2m
„ NORWEGIAN SOFTWARE DEVELOPER
OPERA WAS BOUGHT BY A CHINESE
CONSORTIUM OF INTERNET FIRMS IN 2016
FOR US$1.2m. THE BUSINESS HAS NOW FILED
FOR A NASDAQ IPO OF UP TO US$115m

Rmb9m

(US$1.4m)
„ ASCLETIS PHARMA BECOMES THE FIRST
BIOTECH COMPANY TO SEEK LISTING
APPROVAL FROM THE STOCK EXCHANGE
OF HONG KONG SINCE THE APRIL 30 RULE
CHANGE THAT BIOTECH FIRMS WITH NO
PROFITS OR REVENUES CAN LIST IN HONG
KONG. ASCLETIS POSTED 2017 REVENUE
OF Rmb9m (US$1.4m), DOWN 85% FROM
A YEAR EARLIER. ASCLETIS’ FILING WAS
SWIFTLY FOLLOWED BY FILINGS FROM
HUA MEDICINE, INNOVENT BIOLOGICS
AND US-HEADQUARTERED AOBIOME
THERAPEUTICS

GLOBAL BLOCK TRADES AND

ACCELERATED BOOKBUILDS

BOOKRUNNERS: 1/1/2018–30/6/2018

Managing No of Total Share

bank or group issues US$(m) (%)

1 Goldman Sachs 59 15,539.28 16.1

2 Morgan Stanley 55 13,885.19 14.4

3 Citigroup 50 12,035.57 12.5

4 JP Morgan 42 9,988.87 10.4

5 BAML 19 7,676.22 8.0

6 UBS 29 5,821.29 6.0

7 Credit Suisse 27 5,079.19 5.3

8 Barclays 25 3,769.44 3.9

9 Deutsche Bank 19 2,167.45 2.2

10 Jefferies 20 1,627.85 1.7

Total 381 96,346.05

Global, including all domestic and international deals

Source: Thomson Reuters SDC code: C2a