APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

JSW Cement Limited / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jsw-cement-limited" target="_blank" data-smartkarma-citation="entities:43870:1" rel="noopener">JSW Cement Limited (9858514Z IN)</a> is looking to raise about US$410m in its India IPO. The IPO has been downsized from US$480m with primary component cut to US$160m from US$180m.</li>
<li>JSW Cement (JSWC) is a cement manufacturing company in India focused on manufacturing green cementitious products comprising blended cement, ordinary portland cement, ground granulated blast furnace slag, among other products.</li>
<li>In our earlier notes, we have looked at the company’s past performance. In this note, we talk about implied valuations in the IPO price range.</li>
</ul>



JSW Cement Limited (9858514Z IN) is looking to raise about US$410m in its India IPO. The IPO has been downsized from US$480m with primary component cut to US$160m from US$180m.
JSW Cement (JSWC) is a cement manufacturing company in India focused on manufacturing green cementitious products comprising blended cement, ordinary portland cement, ground granulated blast furnace slag, among other products.
In our earlier notes, we have looked at the company’s past performance. In this note, we talk about implied valuations in the IPO price range.


JSW Cement IPO - RHP Updates, Peer Comp and Thoughts on Valuations

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 5 October, <a href="https://www.smartkarma.com/entities/san-miguel-corporation" target="_blank" data-smartkarma-citation="entities:22728:1" rel="noopener">San Miguel (SMC PM)</a> announced the acquisition of <a href="https://www.smartkarma.com/entities/eagle-cement-corp" target="_blank" data-smartkarma-citation="entities:31217:1" rel="noopener">Eagle Cement (EAGLE PM)</a> at P22.02/share. The deal triggered notification and clearance with the Philippine Competition Commission</li>
<li>I previously concluded in<a href="https://skr.ma/SBoFQ" target="_blank" rel="noopener"> San Miguel Turns Its Sights To Eagle Cement</a> there was no issue with PCC as the transaction was effectively left pocket, right pocket for SMC/Ramon Ang.</li>
<li>SMC has now announced that the Offer is not subject to approval from the PCC. No surprise there.</li>
</ul>


On the 5 October, San Miguel (SMC PM) announced the acquisition of Eagle Cement (EAGLE PM) at P22.02/share. The deal triggered notification and clearance with the Philippine Competition Commission
I previously concluded in San Miguel Turns Its Sights To Eagle Cement there was no issue with PCC as the transaction was effectively left pocket, right pocket for SMC/Ramon Ang.
SMC has now announced that the Offer is not subject to approval from the PCC. No surprise there.


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.

<ul>
<li>The regulator will not review <a href="https://www.smartkarma.com/entities/san-miguel-corporation" target="_blank" data-smartkarma-citation="entities:22728:1" rel="noopener">San Miguel (SMC PM)</a>’s SPA with <a href="https://www.smartkarma.com/entities/eagle-cement-corp" target="_blank" data-smartkarma-citation="entities:31217:1" rel="noopener">Eagle Cement Corp (EAGLE PM)</a>’s selling shareholders to acquire their combined 88.50% stake at PHP22.02 per share.</li>
<li>We expected approval as the PCC, the regulator, previously viewed San Miguel and ECC as part of the same group. The next step is the execution of a definitive agreement.</li>
<li>The approval paves the way for an MTO of the remaining 11.50% minority shares at PHP22.02, likely next month. At the last close, the spread to the offer is 6.1%.</li>
</ul>


The regulator will not review San Miguel (SMC PM)’s SPA with Eagle Cement Corp (EAGLE PM)’s selling shareholders to acquire their combined 88.50% stake at PHP22.02 per share.
We expected approval as the PCC, the regulator, previously viewed San Miguel and ECC as part of the same group. The next step is the execution of a definitive agreement.
The approval paves the way for an MTO of the remaining 11.50% minority shares at PHP22.02, likely next month. At the last close, the spread to the offer is 6.1%.


Eagle Cement: Regulatory Approval Paves the Way for San Miguel’s MTO at PHP22.02

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eagle-cement-corp" target="_blank" data-smartkarma-citation="entities:31217:1" rel="noopener">Eagle Cement Corp (EAGLE PM)</a>/ECC’s selling shareholders (88.50% of the outstanding shares) have signed a SPA to sell their stake to <a href="https://www.smartkarma.com/entities/san-miguel-corporation" target="_blank" data-smartkarma-citation="entities:22728:1" rel="noopener">San Miguel (SMC PM)</a> at PHP22.02 per share.</li>
<li>Post-Completion of the SPA, San Miguel will be required to launch a mandatory tender offer to acquire the remaining 11.50% minority shares at PHP22.02 per share. </li>
<li>As the regulator previously viewed San Miguel and ECC as part of the same group, regulatory approval should be forthcoming. At the last close, the gross spread is 14.1%.</li>
</ul>



Eagle Cement Corp (EAGLE PM)/ECC’s selling shareholders (88.50% of the outstanding shares) have signed a SPA to sell their stake to San Miguel (SMC PM) at PHP22.02 per share.
Post-Completion of the SPA, San Miguel will be required to launch a mandatory tender offer to acquire the remaining 11.50% minority shares at PHP22.02 per share. 
As the regulator previously viewed San Miguel and ECC as part of the same group, regulatory approval should be forthcoming. At the last close, the gross spread is 14.1%.


Eagle Cement’s Potential MTO of PHP22.02 from San Miguel

<ul>
<li>
<a href="https://www.smartkarma.com/entities/san-miguel-corporation" target="_blank" data-smartkarma-citation="entities:22728:1" rel="noopener">San Miguel (SMC PM)</a>  has announced the acquisition of 88.5% of <a href="https://www.smartkarma.com/entities/eagle-cement-corp" target="_blank" data-smartkarma-citation="entities:31217:1" rel="noopener">Eagle Cement (EAGLE PM)</a>  at P22.02/share a 43% premium to last close, the completion of which triggers an MTO.</li>
<li>The deal will trigger notification and clearance with the Philippine Competition Commission.</li>
<li>The PCC effectively squashed the sale of <a href="https://www.smartkarma.com/entities/lafargeholcim-ltd" target="_blank" data-smartkarma-citation="entities:27916:1" rel="noopener">LafargeHolcim Ltd (LHN SW)</a>'s 85.73% stake in <a href="https://www.smartkarma.com/entities/holcim-philippines-inc" target="_blank" data-smartkarma-citation="entities:22702:1" rel="noopener">Holcim Philippines (HLCM PM)</a>  to SMC in 1Q20 over anti-trust concerns.</li>
</ul>



San Miguel (SMC PM)  has announced the acquisition of 88.5% of Eagle Cement (EAGLE PM)  at P22.02/share a 43% premium to last close, the completion of which triggers an MTO.
The deal will trigger notification and clearance with the Philippine Competition Commission.
The PCC effectively squashed the sale of LafargeHolcim Ltd (LHN SW)'s 85.73% stake in Holcim Philippines (HLCM PM)  to SMC in 1Q20 over anti-trust concerns.


San Miguel Turns Its Sights To Eagle Cement

Philippines

Holcim Philippines Incorporated manufactures and distributes portland cement and pozzolan cement.  The Company was incorporated in 1964.

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Holcim Philippines (HLCM PM)

JSW Cement IPO - RHP Updates, Peer Comp and Thoughts on Valuations

JSW Cement is looking to raise about US$410m in its India IPO. In this note, we talk about the RHP updates, peer comp and implied valuations in the...

Akshat Shah

Eagle Cement: PCC's Foregone Conclusion

This is done. Trading at a gross/annualised spread of 4.9%/24.2% assuming late January payment. Hedge out your currency risk, and get involved...

David Blennerhassett

Eagle Cement: Regulatory Approval Paves the Way for San Miguel’s MTO at PHP22.02

The approval paves the way for an MTO of the remaining 11.50% minority shares at PHP22.02, likely next month. At the last close, the spread to the...

Arun George

Eagle Cement’s Potential MTO of PHP22.02 from San Miguel

The regulator should approve as it previously considered San Miguel and ECC as part of the same group. Timing is the key risk. At the last close,...

Arun George

San Miguel Turns Its Sights To Eagle Cement

This looks done. It should make no difference from an anti-trust point of view whether SMC buys out Ang's stake in ECC or not. Hedge out your...

David Blennerhassett

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