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

Auckland Intl Airport / Equity Capital Markets

<ul>
<li>Auckland City Council plans to sell 7% of <a href="https://www.smartkarma.com/entities/auckland-intl-airport-ltd" target="_blank" data-smartkarma-citation="entities:597:1" rel="noopener">Auckland Intl Airport (AIA NZ)</a>  to fund its budget requirements for 2023-24.</li>
<li>Auckland City Mayor has been talking about selling the stake since at least Dec 2022 and hence, the deal is already very well flagged.</li>
<li>In this note, we will talk about the possible placement and other deal dynamics.</li>
</ul>


Auckland City Council plans to sell 7% of Auckland Intl Airport (AIA NZ)  to fund its budget requirements for 2023-24.
Auckland City Mayor has been talking about selling the stake since at least Dec 2022 and hence, the deal is already very well flagged.
In this note, we will talk about the possible placement and other deal dynamics.


Auckland Airport Possible Placement - Will Be Very Well Flagged US$540m Block

New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>Strong aeronautical pricing irrespective of potential reduction: AIA announced very strong aeronautical pricing for its PSE4 pricing period (FY23–FY27), which reflects a targeted post-tax return of 8.7%.</li><li>Capex drives a substantial lift in RAB: AIA's strong aeronautical price path is being driven by a major capex bulge and resultant RAB growth.</li><li>Draft input methodologies review report lowers the excess return available for airports</li></ul>

Strong aeronautical pricing irrespective of potential reduction: AIA announced very strong aeronautical pricing for its PSE4 pricing period (FY23–FY27), which reflects a targeted post-tax return of 8.7%.Capex drives a substantial lift in RAB: AIA's strong aeronautical price path is being driven by a major capex bulge and resultant RAB growth.Draft input methodologies review report lowers the excess return available for airports

Auckland Airport: The Sky Is High for Aero Pricing

<ul><li>The Commerce Commission's (ComCom) ​​​final input methodologies (IMs) report provides a material aeronautical return uplift for Auckland Airport (AIA) compared to the draft report of June 2023.</li><li>There are four key positive implications for AIA. (1) Its incentive to continue to invest in its airport development programme has increased, meaning the prospect of higher capex for longer. </li><li>(2) The new IMs support another step-up in airport pricing for its next pricing period, PSE5 (FY28–FY32). </li></ul>

The Commerce Commission's (ComCom) ​​​final input methodologies (IMs) report provides a material aeronautical return uplift for Auckland Airport (AIA) compared to the draft report of June 2023.There are four key positive implications for AIA. (1) Its incentive to continue to invest in its airport development programme has increased, meaning the prospect of higher capex for longer. (2) The new IMs support another step-up in airport pricing for its next pricing period, PSE5 (FY28–FY32). 

Auckland Airport - ComCom U-Turn Provides Christmas Cheer

<ul>
<li>Auckland City Council plans to sell around 4.5% of <a href="https://www.smartkarma.com/entities/auckland-intl-airport-ltd" target="_blank" data-smartkarma-citation="entities:597:1" rel="noopener">Auckland Intl Airport (AIA NZ)</a> to fund its budget requirements for 2023-24.</li>
<li>The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24.
The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Auckland Airport Placement - Well Flagged, LO Support but Still a Bit Tricky

<ul><li>Auckland Airport (AIA) reported a strong bounce-back in post-COVID profitability in FY23, exceeding the top end of management's guidance band and our estimates, but the forward earnings track is lower than anticipated.</li><li>The passenger (pax) recovery is in full swing and will be boosted by higher aeronautical charges in FY24, partially offset by continued high cost inflation.</li><li> AIA's balance sheet is changing, with record capex in FY23 to be materially exceeded in FY24. </li></ul>

Auckland Airport (AIA) reported a strong bounce-back in post-COVID profitability in FY23, exceeding the top end of management's guidance band and our estimates, but the forward earnings track is lower than anticipated.The passenger (pax) recovery is in full swing and will be boosted by higher aeronautical charges in FY24, partially offset by continued high cost inflation. AIA's balance sheet is changing, with record capex in FY23 to be materially exceeded in FY24. 

Auckland Airport - FY23 — The Capex and Opex Show

New Zealand

Auckland International Airport Limited owns and operates the Auckland International Airport.  The Airport includes a single runway, an international terminal and two domestic terminals.  The Airport also has commercial facilities which includes airfreight operations, car rental services, commercial banking center and office buildings.

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Auckland Intl Airport (AIA NZ)

Auckland Airport Possible Placement - Will Be Very Well Flagged US$540m Block

Auckland Airport just reported its full year results, this in effect frees its largest shareholder, Auckland City Council to progress with its...

Sumeet Singh

Auckland Airport: The Sky Is High for Aero Pricing

Auckland Airport's (AIA) aeronautical pricing outlook is strong, though not as strong as its current pricing schedule suggests given the likely...

Forsyth Barr

Auckland Airport - ComCom U-Turn Provides Christmas Cheer

The Commerce Commission's (ComCom) final input methodologies (IMs) report provides a material aeronautical return uplift for Auckland Airport...

Forsyth Barr

Auckland Airport Placement - Well Flagged, LO Support but Still a Bit Tricky

Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24. In this note, we...

Sumeet Singh

Auckland Airport - FY23 — The Capex and Opex Show

Auckland Airport (AIA) reported a strong bounce-back in post-COVID profitability in FY23, exceeding the top end of management's guidance band and...

Forsyth Barr

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Auckland Airport Possible Placement - Will Be Very Well Flagged US$540m Block

Auckland Airport just reported its full year results, this in effect frees its largest shareholder, Auckland City Council to progress with its...

Sumeet Singh

Auckland Airport: The Sky Is High for Aero Pricing

Auckland Airport's (AIA) aeronautical pricing outlook is strong, though not as strong as its current pricing schedule suggests given the likely...

Forsyth Barr

Auckland Airport - ComCom U-Turn Provides Christmas Cheer

The Commerce Commission's (ComCom) ​​​final input methodologies (IMs) report provides a material aeronautical return uplift for Auckland Airport...

Forsyth Barr

Auckland Airport Placement - Well Flagged, LO Support but Still a Bit Tricky

Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24. In this note, we...

Sumeet Singh

Auckland Airport - FY23 — The Capex and Opex Show

Auckland Airport (AIA) reported a strong bounce-back in post-COVID profitability in FY23, exceeding the top end of management's guidance band and...

Forsyth Barr

The Commerce Commission's (ComCom) final input methodologies (IMs) report provides a material aeronautical return uplift for Auckland Airport...