IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Mapletree Logistics Trust / Equity Capital Markets

<p>On Tuesday, <a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035:1" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> unveiled plans to raise around S$250 million through a private placement of new units. The private placement price range is set at S$1.579-1.617 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisition of seven assets in Malaysia (S$269.9 million for one asset), Vietnam (S$53.3 million for two assets) and China (S$60.7 million for four assets). </p><div class="content-highlight"><p>Overall, we believe that the proposed acquisitions are sensible, but MLT’s valuation at the placement price range is not compelling.</p></div>

On Tuesday, Mapletree Logistics Trust (MLT SP) unveiled plans to raise around S$250 million through a private placement of new units. The private placement price range is set at S$1.579-1.617 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisition of seven assets in Malaysia (S$269.9 million for one asset), Vietnam (S$53.3 million for two assets) and China (S$60.7 million for four assets). Overall, we believe that the proposed acquisitions are sensible, but MLT’s valuation at the placement price range is not compelling.

Mapletree Logistics Trust Placement: Sensible Acquisitions, Full Placement Price

<div><p><a href="https://www.smartkarma.com/entities/esr-cayman-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Cayman (ESR HK)</a> has relaunched a larger IPO to raise as much as HK$11.4 billion ($1.45 billion). The indicative price range of HK$16.20-17.40 per share implies a market cap of $6.27-6.74 billion, which is in line with the market cap range of the earlier aborted IPO. </p></div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/esr-cayman-ipo-preview-a-moving-story" target="_blank" rel="noopener">our IPO initiation note</a>, we noted that ESR has robust fundamentals and growth prospects. In <a href="https://www.smartkarma.com/insights/esr-cayman-ipo-moving-pieces" target="_blank" rel="noopener">our PHIP update note</a>, we noted that while the 1H19 numbers have several moving pieces, the interims continue to suggest that ESR has sound fundamentals. Our valuation analysis suggests that we would participate at most at the low-end of the proposed IPO price range.</p></div></div>

ESR Cayman (ESR HK) has relaunched a larger IPO to raise as much as HK$11.4 billion ($1.45 billion). The indicative price range of HK$16.20-17.40 per share implies a market cap of $6.27-6.74 billion, which is in line with the market cap range of the earlier aborted IPO. In our IPO initiation note, we noted that ESR has robust fundamentals and growth prospects. In our PHIP update note, we noted that while the 1H19 numbers have several moving pieces, the interims continue to suggest that ESR has sound fundamentals. Our valuation analysis suggests that we would participate at most at the low-end of the proposed IPO price range.

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

CapitaLand Ascendas REIT / Equity Bottom-Up

<p>SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;</p>
<p>As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market</p>
<p>SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments<br>REIT Indices:</p>
<ul>
<li>FTSE ST REIT Index: 37 out of the 44 trusts represented</li>
<li>iEdge S-REIT Index: 36 out of the 44 trusts represented</li>
</ul>
<h2>Key Statistics At a Glance</h2>
<ul>
<li>Average dividend yield of 6.2%</li>
<li>Average 3-year annualised total return of 10.8%</li>
<li>Average gearing ratio of 34.5%</li>
<li>10 year market cap CAGR of 22%</li>
</ul>

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;
As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market
SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments REIT Indices:

FTSE ST REIT Index: 37 out of the 44 trusts represented
iEdge S-REIT Index: 36 out of the 44 trusts represented

Key Statistics At a Glance

Average dividend yield of 6.2%
Average 3-year annualised total return of 10.8%
Average gearing ratio of 34.5%
10 year market cap CAGR of 22%


Chartbook: SREITs & Property Trusts -  October 2019

Mapletree Industrial Trust / Equity Capital Markets

<p>On Tuesday, <a href="https://www.smartkarma.com/entities/mapletree-industrial-trust" target="_blank" data-smartkarma-citation="entities:40:1" rel="noopener">Mapletree Industrial Trust (MINT SP)</a> unveiled plans to raise around S$350.0 million through a private placement of new units. The private placement price range is set at S$2.211-2.265 per new unit. </p><div class="content-highlight"><p>The proceeds from the placement will be used to partially fund the proposed acquisitions through a 50:50 JV with Mapletree Investments. Overall, we believe that proposed acquisitions are attractive and bolster MINT’s credentials as an emerging datacentre play. While the valuation is full compared to Industrial S-REITs, we think that it looks attractive for investors seeking datacentre exposure.</p></div>

On Tuesday, Mapletree Industrial Trust (MINT SP) unveiled plans to raise around S$350.0 million through a private placement of new units. The private placement price range is set at S$2.211-2.265 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisitions through a 50:50 JV with Mapletree Investments. Overall, we believe that proposed acquisitions are attractive and bolster MINT’s credentials as an emerging datacentre play. While the valuation is full compared to Industrial S-REITs, we think that it looks attractive for investors seeking datacentre exposure.

Mapletree Industrial Trust Placement: Reasonable for an Emerging Datacentre Play

<p>On Monday, <a href="https://www.smartkarma.com/entities/keppel-dc-reit" target="_blank" data-smartkarma-citation="entities:85:1" rel="noopener">Keppel DC REIT (KDCREIT SP)</a> unveiled plans to raise around S$473.8 million through a private placement and a preferential placing of new units. The private placement price range is set at S$1.703-1.744 per unit, and the preferential offering is set at a price range of S$1.67-1.71 per new unit. </p><div class="content-highlight"><p>The proceeds from the placement will be used to partially fund the proposed acquisitions of 99.0% interest in Keppel DC Singapore 4 and 100.0% interest in 1-Net North Data Centre. Overall, we believe that proposed acquisitions are attractive but the valuation is full, and we think that investors will be better served looking for a lower entry point.</p></div>

On Monday, Keppel DC REIT (KDCREIT SP) unveiled plans to raise around S$473.8 million through a private placement and a preferential placing of new units. The private placement price range is set at S$1.703-1.744 per unit, and the preferential offering is set at a price range of S$1.67-1.71 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisitions of 99.0% interest in Keppel DC Singapore 4 and 100.0% interest in 1-Net North Data Centre. Overall, we believe that proposed acquisitions are attractive but the valuation is full, and we think that investors will be better served looking for a lower entry point.

Singapore

ESR-LOGOS Real Estate Investment Trust (“ESR-LOGOS REIT”) is a leading New Economy and future-ready Asia Pacific S-REIT. Listed on the Singapore Exchange Securities Trading Limited since 25 July 2006, ESR-LOGOS REIT invests in quality income-producing industrial properties in key gateway markets.

As at 28 April 2022, ESR-LOGOS REIT holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties with total assets of approximately S$5.5 billion. Its portfolio comprises 84 properties located across the developed markets of Singapore (63 assets) and Australia (21 assets), with a total gross floor area of approximately 2.4 million sqm, as well as investments in three property funds in Australia. ESR-LOGOS REIT is also a constituent of the FTSE EPRA Nareit Global Real Estate Index. 

ESR-LOGOS REIT is managed by ESR-LOGOS Funds Management (S) Limited (the “Manager”) and sponsored by the ESR Group (“ESR”). The Manager is owned by ESR (67.3%), Shanghai Summit Pte. Ltd. (25.0%), and Mitsui & Co., Ltd (7.7%), respectively.

For further information on ESR-LOGOS REIT, please visit www.esr-logosreit.com.sg.

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ESR-LOGOS REIT (EREIT SP)

Mapletree Logistics Trust Placement: Sensible Acquisitions, Full Placement Price

On Tuesday, Mapletree Logistics Trust (MLT SP) unveiled plans to raise around S$250 million through a private placement of new units. The private...

Arun George

ESR Cayman IPO Valuation: A Full Price

ESR Cayman (ESR HK) has relaunched a larger IPO to raise as much as HK$11.4 billion ($1.45 billion). The indicative price range of HK$16.20-17.40...

Arun George

Chartbook: SREITs & Property Trusts - October 2019

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) & Property Trusts. Based on the FTSE ST REIT Index, the dividend...

Singapore Exchange Ltd (SGX)

Mapletree Industrial Trust Placement: Reasonable for an Emerging Datacentre Play

On Tuesday, Mapletree Industrial Trust (MINT SP) unveiled plans to raise around S$350.0 million through a private placement of new units. The...

Arun George

Keppel DC REIT Placement: A Full Price

On Monday, Keppel DC REIT (KDCREIT SP) unveiled plans to raise around S$473.8 million through a private placement and a preferential placing of new...

Arun George

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