Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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

Coronado Global Resources Inc / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/27473" target="_blank" data-smartkarma-citation="entities:27473:1">Coronado Global Resources Inc (CRN AU)</a> plans to raise up to US$1bn in its Australian IPO. The company is domiciled in the US and hence, will issues CDRs in Australia. Its almost wholly owned by a resource sector oriented PE and has been built over the past seven years through a series of acquisitions, mostly in the US apart from one this year in Australia, which was also its biggest one. 
The acquisitions have all been of stable operational assets and hence, will provide a steady stream of cash flows. There could be some upside from development assets as well, though the timeline of the development of these remains uncertain. There is also the potential for future acquisitions, which is aided by CGR's debt-lite balance sheet. Based on the company's estimates, investors could be in line for a 10-12% dividend yield for 2019.
2020 is a different issue though as most reports seem to be forecasting a decline in met coal prices for an extended period of time. With production stable and prices coming down and not much improvement in cash cost per tonne, it's hard to see how the company will be able to sustain its 10-12% dividend yield beyond 2019. In addition, all the mines have been acquired for an amount that is less than half of the implied EV at the low-end, with the biggest two acquisitions having been done only over the past two years.

Coronado Global Resources Inc (CRN AU) plans to raise up to US$1bn in its Australian IPO. The company is domiciled in the US and hence, will issues CDRs in Australia. Its almost wholly owned by a resource sector oriented PE and has been built over the past seven years through a series of acquisitions, mostly in the US apart from one this year in Australia, which was also its biggest one. 
The acquisitions have all been of stable operational assets and hence, will provide a steady stream of cash flows. There could be some upside from development assets as well, though the timeline of the development of these remains uncertain. There is also the potential for future acquisitions, which is aided by CGR's debt-lite balance sheet. Based on the company's estimates, investors could be in line for a 10-12% dividend yield for 2019.
2020 is a different issue though as most reports seem to be forecasting a decline in met coal prices for an extended period of time. With production stable and prices coming down and not much improvement in cash cost per tonne, it's hard to see how the company will be able to sustain its 10-12% dividend yield beyond 2019. In addition, all the mines have been acquired for an amount that is less than half of the implied EV at the low-end, with the biggest two acquisitions having been done only over the past two years.

Coronado Global Resources IPO - Stable Assets, Great Yield but Its Also Likely to Be the Peak Yield

Australia

Yancoal Australia Ltd. provides mining services. The Company mines, sells, exports, and markets clean and coking coal. Yancoal operates internationally.

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Yancoal Australia (YAL AU)

Coronado Global Resources IPO - Stable Assets, Great Yield but Its Also Likely to Be the Peak Yield

Coronado Global Resources Inc (CRN AU) plans to raise up to US$1bn in its Australian IPO. The company is domiciled in the US and hence, will issues...

Sumeet Singh

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