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

Kokusai Electric  / Equity Capital Markets

<ul>
<li>A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments: <a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525 JP)</a> lock-up expiry and <a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a>, <a href="https://www.smartkarma.com/entities/bharti-hexacom" target="_blank" data-smartkarma-citation="entities:40858:1" rel="noopener">Bharti Hexacom (6597372Z IN)</a> IPOs.</li>
<li>Event-Driven developments: <a href="https://www.smartkarma.com/entities/langham-hospitality-inv-ss" target="_blank" data-smartkarma-citation="entities:760:1" rel="noopener">Langham Hospitality Inv Ss (1270 HK)</a>, <a href="https://www.smartkarma.com/entities/intellicentrics-global-holding" target="_blank" data-smartkarma-citation="entities:40901:1" rel="noopener">IntelliCentrics Global Holding (6819 HK)</a> <a href="https://www.smartkarma.com/entities/jastec-co-ltd" target="_blank" data-smartkarma-citation="entities:9201:1" rel="noopener">Jastec Co Ltd (9717 JP)</a>, <a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a>, <a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP)</a>, <a href="https://www.smartkarma.com/entities/isetan-singapore-ltd" target="_blank" data-smartkarma-citation="entities:6762:1" rel="noopener">Isetan Singapore (ISET SP)</a>.     </li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Kokusai Electric (6525 JP) lock-up expiry and HD Hyundai Marine Solution (443060 KS), Bharti Hexacom (6597372Z IN) IPOs.
Event-Driven developments: Langham Hospitality Inv Ss (1270 HK), IntelliCentrics Global Holding (6819 HK) Jastec Co Ltd (9717 JP), JSR Corp (4185 JP), Best World International (BEST SP), Isetan Singapore (ISET SP).     


Weekly Deals Digest (07 Apr) - Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 52 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Four new deals discussed on Smartkarma: <a href="https://www.smartkarma.com/entities/austal-ltd" target="_blank" data-smartkarma-citation="entities:14420:1" rel="noopener">Austal  (ASB AU)</a>'s spurned Offer; <a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World (BEST SP)</a>'s Exit Offer; <a href="https://www.smartkarma.com/entities/isetan-singapore-ltd" target="_blank" data-smartkarma-citation="entities:6762:1" rel="noopener">Isetan Singapore (ISET SP)</a>'s parent Offer; and (maybe) <a href="https://www.smartkarma.com/entities/langham-hospitality-inv-ss" target="_blank" data-smartkarma-citation="entities:760:1" rel="noopener">Langham Hospitality (1270 HK)</a>'s privatisation. </li>
<li>Key updates took place on: <a href="https://www.smartkarma.com/entities/azure-minerals-ltd" target="_blank" data-smartkarma-citation="entities:16538:1" rel="noopener">Azure Minerals (AZS AU)</a>, <a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a>, <a href="https://www.smartkarma.com/entities/intellicentrics-global-holding" target="_blank" data-smartkarma-citation="entities:40901:1" rel="noopener">IntelliCentrics Global Holding (6819 HK)</a> and <a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a>.</li>
</ul>


I tally 52 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Four new deals discussed on Smartkarma: Austal  (ASB AU)'s spurned Offer; Best World (BEST SP)'s Exit Offer; Isetan Singapore (ISET SP)'s parent Offer; and (maybe) Langham Hospitality (1270 HK)'s privatisation. 
Key updates took place on: Azure Minerals (AZS AU), Genex Power Ltd (GNX AU), IntelliCentrics Global Holding (6819 HK) and JSR Corp (4185 JP).


(Mostly) Asia-Pac M&A: Austal, Best World, Isetan Singapore, Langham Hospitality, Azure, Genex Power

<ul>
<li>After flagging a proposed delisting exercise last month, direct seller <a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP)</a> has <a href="https://links.sgx.com/FileOpen/2024%2004%2003%20BWIL%20Exit%20Offer%20Ann.ashx?App=Announcement&amp;FileID=794527" target="_blank" rel="noopener">announced</a> an Exit Offer lead by Best World founders Dora Hoan and Doreen Tan.</li>
<li>The Offer Price is S$2.50/share, a 42.86% premium to undisturbed. The Offer requires approval from 75% of disinterested shareholders. Hoan, Tan and concert parties holding 65.12%, are required to abstain.</li>
<li>Best World shares resumed trading on November 2022 after 42 months of suspension, subsequent to media reports and a short seller raising regulatory concerns over its Chinese business model.</li>
</ul>


After flagging a proposed delisting exercise last month, direct seller Best World International (BEST SP) has announced an Exit Offer lead by Best World founders Dora Hoan and Doreen Tan.
The Offer Price is S$2.50/share, a 42.86% premium to undisturbed. The Offer requires approval from 75% of disinterested shareholders. Hoan, Tan and concert parties holding 65.12%, are required to abstain.
Best World shares resumed trading on November 2022 after 42 months of suspension, subsequent to media reports and a short seller raising regulatory concerns over its Chinese business model.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP)</a> has disclosed an exit offer through selective capital raising and delisting. The offer of S$2.50 is a 42.9% premium to the undisturbed price of S$1.75. </li>
<li>The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).</li>
<li>The headcount test is a risk. The offer is light as only 66.7% of retained earnings will be distributed and the consideration will be covered 1.6x by the net cash.</li>
</ul>



Best World International (BEST SP) has disclosed an exit offer through selective capital raising and delisting. The offer of S$2.50 is a 42.9% premium to the undisturbed price of S$1.75. 
The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).
The headcount test is a risk. The offer is light as only 66.7% of retained earnings will be distributed and the consideration will be covered 1.6x by the net cash.


Best World (BEST SP): Not the Best Exit Offer

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

Best World International / Forensic Accounting

<a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP),</a> a Singapore based beauty and wellness products player, has been on a back-foot for almost two years when its shares were stopped from trading on the SGX back in May 2019. This was primarily on the back of fictitious growth in China coupled with fabricated sales to one of its import agent, reported by <a href="https://www.businesstimes.com.sg/companies-markets/sales-of-drs-secret-in-china-best-worlds-best-kept-secret" target="_blank" rel="noopener">Business Times Article</a> and <a href="https://www.bonitasresearch.com/wp-content/uploads/dlm_uploads/2019/04/BonitasResearch-Short-Best_World-SGX_CGN-BBerg_BEST-Fraud-24April2019.pdf" target="_blank" rel="noopener">Bonitas Research Report</a>.
Since China was the epicenter reason of its starry financials, the regulator (SGX RegCo) had to take immediate action and consequently ordered Best to conduct an independent audit regarding its complicated business model in China. Once PwC had concluded their investigation, the SGX RegCo had asked the company to address the various disclaimer of opinions post which the company engaged BDO Advisory Pte Ltd and came up with a list of measures.
The company had also announced its newly audited results for the F18, F19 and F20 that make adjustments to the irregularities. It has complied with the regulator and also kept on publishing the results after the trading halt. The recent announcements have been very critical wherein the company has come up with its trading resumption proposal alongside a strong Q4 growth. It also has a regular track record of doing buybacks, and also did a buyback of SGD 8.6 mn in mid 2019. Thus, Best remains one of the hot topics since a couple of months.
From a forensic point of view, it is clear that there are visible green-shoots when it comes to growth, but some of the fundamentals indicate that there is a mighty chance of aggressive revenue recognition. Even if the stock gets resumed on the bourse, the fundamentals are running adrift from being strong.
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This insight does not deep dive into the audit assessment but rather assesses how the recent financials look like.
</div>

Best World International (BEST SP), a Singapore based beauty and wellness products player, has been on a back-foot for almost two years when its shares were stopped from trading on the SGX back in May 2019. This was primarily on the back of fictitious growth in China coupled with fabricated sales to one of its import agent, reported by Business Times Article and Bonitas Research Report.
Since China was the epicenter reason of its starry financials, the regulator (SGX RegCo) had to take immediate action and consequently ordered Best to conduct an independent audit regarding its complicated business model in China. Once PwC had concluded their investigation, the SGX RegCo had asked the company to address the various disclaimer of opinions post which the company engaged BDO Advisory Pte Ltd and came up with a list of measures.
The company had also announced its newly audited results for the F18, F19 and F20 that make adjustments to the irregularities. It has complied with the regulator and also kept on publishing the results after the trading halt. The recent announcements have been very critical wherein the company has come up with its trading resumption proposal alongside a strong Q4 growth. It also has a regular track record of doing buybacks, and also did a buyback of SGD 8.6 mn in mid 2019. Thus, Best remains one of the hot topics since a couple of months.
From a forensic point of view, it is clear that there are visible green-shoots when it comes to growth, but some of the fundamentals indicate that there is a mighty chance of aggressive revenue recognition. Even if the stock gets resumed on the bourse, the fundamentals are running adrift from being strong.

This insight does not deep dive into the audit assessment but rather assesses how the recent financials look like.


Best World International: Fundamentals Still Pose Some Gray Areas

Singapore

Best World International Limited sources, formulates, brands, and distributes a range of health and lifestyle products under the BWL, Avance, DORS, DR's Secret, and DRs Seager brand names.  The Company also distributes a range of third-party cosmetics and skin care products under the brand C'bon.

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Best World International (BEST SP)

Weekly Deals Digest (07 Apr) - Kokusai Electric, HD Hyundai Marine, Langham, Jastec, JSR, Best World

Last week, notable developments occurred in Event-Driven (Langham Hospitality, IntelliCentrics, Jastec, JSR, Best World, Isetan) and ECM (Kokusai...

Arun George

(Mostly) Asia-Pac M&A: Austal, Best World, Isetan Singapore, Langham Hospitality, Azure, Genex Power

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Best World (BEST SP): Exit Stage Left

This is done. Trading at a 3.7%/19.5% gross/annualised spread assuming mid-late June payment. That's attractive, although this is not a super...

David Blennerhassett

Best World (BEST SP): Not the Best Exit Offer

The vote is a risk. The offer is light as only 66.7% of retained earnings will be distributed, and the consideration will be covered by 1.6x of the...

Arun George

Best World International: Fundamentals Still Pose Some Gray Areas

Best world recently made several announcements, such as addresses to independent audit report, results etc. Even though growth is visible, the...

Nitin Mangal

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