IPO Weekly: Asset Management Giant is coming

Hong Kong IPO Weekly

As of the first week of 2022, there were 3 newly listed companies offering shares on HKEx, 1 Proofs & PHIPs, and 3 applications Proofs.

Companies offering shares include: the fourth largest paper blanket manufacturer in China $VANOV HOLDINGS(02260)$; The world's leading manufacturer of high-performance rare earth permanent magnet materials $Jl Mag Rare-Earth Co.,Ltd.(300748)$​$JLMAG(06680)$(AH listed); B.Duck Parent Company$SEMK HOLDINGS(02250)$.

The Proofs & PHIPs companies was Huitongda Network.

The newly submitted applications Proofs includes: producers and distributors of online dramas and online movies Endurance entertainmentQingdao, Enterprise AI Solution Provider QINGDAO AINNOVATION TECHNOLOGY GROUP ,$LONGFOR GROUP(00960)$Split property management and commercial operation services Longfor Intelligent Living Limited.

I. QINGDAO AINNOVATION TECHNOLOGY GROUP

Innovation Qizhi is the third largest AI technology-driven solution provider in China, providing AI platform, algorithm, software and AI enabling equipment. Under the two-wheel drive mode of "technical products" + "industry scenes", the company relies on computer vision and machine learning technology to build ManuVision (Machine Vision Intelligent Platform); MatrixVision (Edge Video Intelligent Platform); Orion (Distributed Machine Learning Platform) has AI platform. The chairman and CEO of the company is known as the "pioneer of artificial intelligence"Kai-Fu Lee.

In terms of performance, the manufacturing industry recorded revenue of 282 million yuan, an increase of 202 million yuan over the same period of 2020, accounting for 50.8% of the total revenue; The financial services industry achieved revenue of 193 million yuan, up 26.3% year-on-year, accounting for 34.9% of the total revenue. In 2020 and the first three quarters of 2021, the company's R&D expenditure was 182 million yuan and 177 million yuan respectively, accounting for 39.4% and 32% of the total revenue respectively.

Before the IPO, Innovation Qizhi has completed several rounds of financing, and investment institutions include$Softbank Group Corp(SFTBY)$World-renowned investment banks such as CICC

2. Huitongda Network

Founded in 2010, Tongda is a trading and service platform for corporate customers in China's retail industry, and is committed to providing high-quality goods and services for China's sinking market. According to the scale of trading business facing the sinking market and the overall domestic market in 2020, Huitongda ranks first and third respectively. . Huitongda's trading business mainly provides a variety of commodities to member retail stores and channel cooperative customers through its own e-commerce platform "Huitongda Mall", including household appliances, consumer electronics, agricultural materials, drinks and so on.

In terms of performance, as of September 30, 2021, Huitongda has 57,074 active member retail stores, 13,653 active channel cooperative customers and 4,268 suppliers, forming a retail ecology covering 21 provinces and more than 20,000 townships in China with more than 175,000 SKUs. From 2018 to the first three quarters of 2021, the company's operating income was 29.802 billion yuan, 43.633 billion yuan, 49.629 billion yuan and 46.496 billion yuan respectively; The net losses were 276 million yuan, 305 million yuan, 280 million yuan and 158 million yuan respectively.

The company has obtained 9 rounds of financing, including$China International Capital Corporation(CICC)$,$Alibaba(BABA)$, Shunwei Capital, Huaxia Insurance,$HTSC(06886)$State Grid, State Development and Investment Group, etc.

US IPO Weekly

IPO in the week:

• Amylyx Pharmaceuticals (Amylyx Pharmaceuticals, Inc.$(AMLX)$) The first day performance was-4. 89%;
• CinCor Pharma (CinCor Pharma, Inc.$(CINC)$) +0% on the first day;
• VigilNeuroscience (Vigil Neuroscience, Inc.$(VIGL)$) Performance on the first day-9.64%;
• Amazon's three-way buyer company Hour Loop (Hour Loop Inc$(HOUR)$) +99.75% on the first day of listing.

IPO next week:

• January 12: HILLSTREAM, an anti-cancer drug biomedical company (Hillstream BioPharma Inc.$(HILS)$);
• January 13: Foremost and FGI Industries, manufacturers of kitchen and bathroom products (FGI Industries Ltd.$(FGI)$); Human capital management platform Justworks, Inc. (Justworks, Inc.$(JW)$); TPG, Inc., an asset management giant with an AUM of $700 billion (TPG, Inc.$(TPG)$)

I.The asset management giant TPG

TPG is a top alternative asset management company that grew from a small home start-up. Founded in 1992, TPG created the myth of saving Continental Airlines from bankruptcy. The company is an early investor in Airbnb, a global homestay platform, and Uber, an American taxi application developer. It is also one of the first international private equity firms to enter the Chinese market. It has invested in United Family,$LENOVO GROUP(00992)$, CICC,$PSBC(01658)$,$Ping An Bank Co.,Ltd.(000001)$, Zhonghe Rural Credit, Du Xiaoman Finance,$BIOHEART-B(02185)$, Dingdang fast medicine and other enterprises.

In terms of performance, the revenue from 2018 to 2020 was US $1.404 billion, US $1.988 billion and US $2.115 billion respectively, and the net profit for the same period was US $711 million, US $1.18 billion and US $1.439 billion. Revenue surged 590% to about $3.9 billion in the first nine months of 2021.

This issue ranges from US $28 to US $31, with 33.9 million shares issued, with the highest fundraising exceeding US $1 billion. TPG could be valued at $9.5bn at its offering price.

II. FGI Industries Ltd, a supplier of kitchen and bathroom products (FGI Industries Ltd.$(FGI)$)

FGI Industries is the world's leading supplier of kitchen and bathroom products involved in the restructuring of its parent company Foremost Groups Ltd. ("Foremost") and its subsidiaries. In the past 30 years, the company has established a reputation in the industry for product innovation, quality and excellent customer service. Currently focusing on sanitary ware (mainly toilets, sinks, bases and toilet seats), bathroom furniture (dressers, mirrors and cabinets), shower systems, customer kitchen cabinets and other accessories and other product categories.

FGI Industries products are primarily used for maintenance and renovation ("R& R") activities and are less used in new or commercial buildings. The company sells its products through many customer partners, including mass retail, wholesale and commercial distributors, online retailers and specialty stores.

For the 12 months ending June 30, 2021, FGI Industries had sales of $150 million.

In SPAC, there were 3 SPAC IPOs of shell companies that week.

SPAC DAs:

Energy Vault with Novus Capital Corp. II (Novus Capital Corporation II$(NXU)$)

Financial technology platform Dave with VPC Impact Acquisition Holdings III, Inc. (VPC Impact Acquisition Holdings III, Inc.$(VPCC)$)

FYI