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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/invocare-ltd" target="_blank" data-smartkarma-citation="entities:9044:1" rel="noopener">Invocare Ltd (IVC AU)</a> disclosed a revised non-binding indicative proposal from TPG at A$13.00 per share, a mere 2.8% above the previously rejected proposal of A$12.65 per share.</li>
<li>
<a href="https://www.smartkarma.com/entities/tpg-inc" target="_blank" data-smartkarma-citation="entities:35361:1" rel="noopener">TPG Inc (TPG US)</a> has secured a five-week exclusive due diligence. The Board intend to unanimously recommend a binding proposal at no less than A$13.00 per share. </li>
<li>The Board’s capitulation for a marginal bump reflects the lack of a Plan B. While, not a knockout bid, the offer is reasonable. The gross spread stands at 4.6%. </li>
</ul>



Invocare Ltd (IVC AU) disclosed a revised non-binding indicative proposal from TPG at A$13.00 per share, a mere 2.8% above the previously rejected proposal of A$12.65 per share.

TPG Inc (TPG US) has secured a five-week exclusive due diligence. The Board intend to unanimously recommend a binding proposal at no less than A$13.00 per share. 
The Board’s capitulation for a marginal bump reflects the lack of a Plan B. While, not a knockout bid, the offer is reasonable. The gross spread stands at 4.6%. 


InvoCare (IVC AU): Board Capitulates to TPG’s Small Bump

<ul>
<li>
<a href="https://www.afr.com/street-talk/pe-buyer-chases-invocare-stake-ubs-runs-raid-20230306-p5cpvl" target="_blank" rel="noopener">AFR reports</a> that TPG Capital, through UBS, is seeking to acquire 14.4m or 10.00% of <a href="https://www.smartkarma.com/entities/invocare-ltd" target="_blank" data-smartkarma-citation="entities:9044:1" rel="noopener">Invocare Ltd (IVC AU)</a>'s outstanding shares at A$12.65, a 41.3% premium to the undisturbed price.</li>
<li>If the aftermarket raid is successful, TPG will follow the tried-and-test private equity playbook of securing a pre-bid stake before lobbing a non-binding offer at A$12.65 per share</li>
<li>TPG has timed its move to take advantage of the post-results price slump. While not a knockout offer, it is a starting point for the Board to secure better terms.</li>
</ul>



AFR reports that TPG Capital, through UBS, is seeking to acquire 14.4m or 10.00% of Invocare Ltd (IVC AU)'s outstanding shares at A$12.65, a 41.3% premium to the undisturbed price.
If the aftermarket raid is successful, TPG will follow the tried-and-test private equity playbook of securing a pre-bid stake before lobbing a non-binding offer at A$12.65 per share
TPG has timed its move to take advantage of the post-results price slump. While not a knockout offer, it is a starting point for the Board to secure better terms.


InvoCare (IVC AU): TPG Capital Makes a Move

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>The volatile market environment prompted us to seek for companies with secured demand, high earnings quality and solid financial position - <a href="https://www.smartkarma.com/entities/fu-shou-yuan-international" target="_blank" data-smartkarma-citation="entities:18168:1" rel="noopener">Fu Shou Yuan International (1448 HK)</a> fits these criteria.</li>
<li>It has established earnings record, favourable demographic environment, good reserve for growth and upside from geographical expansion. We like its emphasis on shareholder return through rising payout and share buyback. </li>
<li>Its net cash position, which amounted to 20% of the market capitalisation, adds further comfort to us. Meanwhile, valuations are not stretched relative to international peers.</li>
</ul>


The volatile market environment prompted us to seek for companies with secured demand, high earnings quality and solid financial position - Fu Shou Yuan International (1448 HK) fits these criteria.
It has established earnings record, favourable demographic environment, good reserve for growth and upside from geographical expansion. We like its emphasis on shareholder return through rising payout and share buyback. 
Its net cash position, which amounted to 20% of the market capitalisation, adds further comfort to us. Meanwhile, valuations are not stretched relative to international peers.


Fu Shou Yuan (1448 HK): An Everlasting Growth Business

United States

Carriage Services, Inc. operates funeral homes and cemeteries in the United States.  The Company provides a complete range of services relating to funerals, burials, and cremations.  Carriage also sells related products and merchandise such as caskets, burial vaults, garments, and memorials.

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Carriage Services (CSV US)

InvoCare (IVC AU): Board Capitulates to TPG’s Small Bump

The Board’s capitulation for a marginal bump reflects the lack of a Plan B. While, not a knockout bid, the offer is reasonable. At the last close,...

Arun George

InvoCare (IVC AU): TPG Capital Makes a Move

TPG is seeking a 10% pre-bid stake and will subsequently lob a non-binding offer at A$12.65. While not a knockout offer, it is a good starting...

Arun George

Fu Shou Yuan (1448 HK): An Everlasting Growth Business

Fu Shou Yuan offers good insulation from economic downturn from its unique exposure to the death care service market in China. It has strong cash...

Osbert Tang, CFA

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