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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric (2580 HK)</a> is the fifth-largest air conditioner provider globally as measured by volume. It has launched an HKEx IPO to raise up to US$462 million.</li>
<li>I discussed the investment case in <strong><em><a href="https://www.smartkarma.com/insights/aux-electric-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:198161" rel="noopener">Aux Electric IPO: The Investment Case</a></em></strong>. </li>
<li>In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.</li>
</ul>



Aux Electric (2580 HK) is the fifth-largest air conditioner provider globally as measured by volume. It has launched an HKEx IPO to raise up to US$462 million.
I discussed the investment case in Aux Electric IPO: The Investment Case. 
In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.


Aux Electric IPO (2580 HK): Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric Co Ltd (0917839D HK)</a> is the fifth-largest air conditioner provider globally as measured by volume. It is seeking to raise US$600 million.     </li>
<li>Aux is known for its aggressive low pricing, which has helped it establish itself as an affordable option to larger peers.</li>
<li>The investment case is bullish due to strong growth, increasing contract liabilities, encouraging margin profile despite the low-price strategy/higher ODM mix and cash generation.  </li>
</ul>



Aux Electric Co Ltd (0917839D HK) is the fifth-largest air conditioner provider globally as measured by volume. It is seeking to raise US$600 million.     
Aux is known for its aggressive low pricing, which has helped it establish itself as an affordable option to larger peers.
The investment case is bullish due to strong growth, increasing contract liabilities, encouraging margin profile despite the low-price strategy/higher ODM mix and cash generation.  


APAC IPOs & Placements, Aequitas Research

Nicholas Tan

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric Co Ltd (0917839D HK)</a>  is looking to raise up to US$600m in its upcoming Hong Kong IPO.</li>
<li>It is one of the global top five air conditioner providers, with capabilities covering the design, R&amp;D, production, sales and related services of household and central air conditioners.</li>
<li>In this note, we look at the firm’s past performance.</li>
</ul>



Aux Electric Co Ltd (0917839D HK)  is looking to raise up to US$600m in its upcoming Hong Kong IPO.
It is one of the global top five air conditioner providers, with capabilities covering the design, R&amp;D, production, sales and related services of household and central air conditioners.
In this note, we look at the firm’s past performance.


Rosita Fernandes

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric Co Ltd (0917839D HK)</a>  (AECL) is looking to raise about US$100m in its upcoming Hong Kong IPO. The bookrunners for the deal are CICC and Oriental Securities.</li>
<li>AECL is engaged in the design, R&amp;D, manufacturing, sales, and after-sales services of both household and central air conditioners, with operations spanning over 150 countries and regions.</li>
<li>According to F&amp;S Report, AECL was among the top five global air conditioner providers by sales volume in 2024, with a market share of 7.1%.</li>
</ul>



Aux Electric Co Ltd (0917839D HK)  (AECL) is looking to raise about US$100m in its upcoming Hong Kong IPO. The bookrunners for the deal are CICC and Oriental Securities.
AECL is engaged in the design, R&amp;D, manufacturing, sales, and after-sales services of both household and central air conditioners, with operations spanning over 150 countries and regions.
According to F&amp;S Report, AECL was among the top five global air conditioner providers by sales volume in 2024, with a market share of 7.1%.


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The December rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.</li>
<li>The net round-trip trade across all stocks across the five indices is estimated at HK$50bn (US$6.4bn). There is size to trade in a lot of stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi (1810 HK)</a> is the biggest buy due to HSIII Index inclusion and capping, while <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> is the biggest capping sell.</li>
</ul>


The December rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.
The net round-trip trade across all stocks across the five indices is estimated at HK$50bn (US$6.4bn). There is size to trade in a lot of stocks.

Xiaomi (1810 HK) is the biggest buy due to HSIII Index inclusion and capping, while Alibaba (9988 HK) is the biggest capping sell.


HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.4bn of Flows Post Capping (Dec 2025)

Hong Kong

Aux Electric Co., Ltd. designs, develops, manufactures, and sells air conditioners. The Company produces household air conditioners, central air conditioners, and provides related services. Aux Electric markets its products across worldwide.

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Aux Electric (2580 HK)

Aux Electric IPO (2580 HK): Valuation Insights

Aux has launched an HKEx IPO to raise up to US$462 million. In this note, I present my forecasts and valuation. My analysis suggests that the IPO...

Arun George

Aux Electric IPO: The Investment Case

Aux Electric, the fifth-largest air conditioner provider globally, is seeking to raise US$600 million through an HKEx IPO. In this note, I discuss...

Arun George

Aux Electric Pre-IPO: Competitive Niche

Aux Electric is looking to raise up to US$600m in its upcoming Hong Kong IPO. It is one of the global top five air conditioner providers. In this...

Nicholas Tan

Aux Electric Co Ltd Pre-IPO Tearsheet

Aux Electric Co Ltd is set to raise $100m in Hong Kong IPO, with bookrunners CICC and Oriental Securities. The company is a top global air...

Rosita Fernandes

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.4bn of Flows Post Capping (Dec 2025)

The Dec rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use today's closing prices for capping. The round-trip trade across the...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Aux Electric IPO (2580 HK): Valuation Insights

Aux has launched an HKEx IPO to raise up to US$462 million. In this note, I present my forecasts and valuation. My analysis suggests that the IPO...

Arun George

Aux Electric IPO: The Investment Case

Aux Electric, the fifth-largest air conditioner provider globally, is seeking to raise US$600 million through an HKEx IPO. In this note, I discuss...

Arun George

Aux Electric Pre-IPO: Competitive Niche

Aux Electric is looking to raise up to US$600m in its upcoming Hong Kong IPO. It is one of the global top five air conditioner providers. In this...

Nicholas Tan

Aux Electric Co Ltd Pre-IPO Tearsheet

​Aux Electric Co Ltd is set to raise $100m in Hong Kong IPO, with bookrunners CICC and Oriental Securities. The company is a top global air...

Rosita Fernandes

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.4bn of Flows Post Capping (Dec 2025)

The Dec rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use today's closing prices for capping. The round-trip trade across the...

Brian Freitas

Aux Electric Co Ltd is set to raise $100m in Hong Kong IPO, with bookrunners CICC and Oriental Securities. The company is a top global air...