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.

Event-Driven

<ul>
<li>On 13th Apr 2021, Grab (0967655D SP) announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of US$39.6bn.</li>
<li>The merger and listing will be completed on 2nd Dec 2021.</li>
<li>In this note, we will talk about valuations and the lock-up release schedule.</li>
</ul>


On 13th Apr 2021, Grab (0967655D SP) announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of US$39.6bn.
The merger and listing will be completed on 2nd Dec 2021.
In this note, we will talk about valuations and the lock-up release schedule.


Grab SPAC Listing - Thoughts on Valuation, Lock-Up Release

<ul>
<li>On 13th Apr 2021, Grab (0967655D SP) announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of US$39.6bn.</li>
<li>The merger and listing will be completed on 2nd Dec 2021.</li>
<li>In this note, we will talk about the recent updates since the company first reported its plans to list.</li>
</ul>


On 13th Apr 2021, Grab (0967655D SP) announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of US$39.6bn.
The merger and listing will be completed on 2nd Dec 2021.
In this note, we will talk about the recent updates since the company first reported its plans to list.


Grab SPAC Listing - Still Firing on Only One Cylinder - Lit by Consumer Incentives

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Yangzijiang Shipbuilding / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yangzijiang-shipbuilding-holdings-limited" target="_blank" data-smartkarma-citation="entities:660:1" rel="noopener">Yangzijiang Shipbuilding (YZJSGD SP)</a> has <a href="https://links.sgx.com/FileOpen/YZJ_Announcement_final.ashx?App=Announcement&amp;FileID=692475" target="_blank" rel="noopener">proposed</a> a spin-off and listing of the company's investment segment.</li>
<li>Currently, its principal activities under the investment segment consist of microfinancing, debt investments at amortised cost, and other investments. The proposed spin-off and listing may be completed in 6-12 months.</li>
<li>As of 1 November 2021, Yangzijiang 's secured orders are the largest in its history. </li>
</ul>



Yangzijiang Shipbuilding (YZJSGD SP) has proposed a spin-off and listing of the company's investment segment.
Currently, its principal activities under the investment segment consist of microfinancing, debt investments at amortised cost, and other investments. The proposed spin-off and listing may be completed in 6-12 months.
As of 1 November 2021, Yangzijiang 's secured orders are the largest in its history. 


Yangzijiang Shipbuilding (YZJSGD SP): Investment Ops Spin-Off

<ul>
<li>Kakao Bank (KB) is South Korea’s largest digital bank. It's a subsidiary of Kakao, which holds a 27.3% stake post listing.</li>
<li>It is a branchless digital bank that only started operations in 2017. As of Sep 21, it had a loan book of US$21bn, deposit base of US$24bn and 17.4m customers.</li>
<li>Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea.</li>
</ul>


Kakao Bank (KB) is South Korea’s largest digital bank. It's a subsidiary of Kakao, which holds a 27.3% stake post listing.
It is a branchless digital bank that only started operations in 2017. As of Sep 21, it had a loan book of US$21bn, deposit base of US$24bn and 17.4m customers.
Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea.


2022 High Conviction - Kakao Bank - A Long Way to Go

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-11/Capture_27.PNG' alt='Daiwa house logistics' />
 </figure>
 <div class='content-caption'>Daiwa house logistics</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
Daiwa House Logistics Trust (DHLT), which has an initial portfolio (IPO Portfolio) of 14 logistics properties in Japan with an aggregate appraised value of approximately ¥80,570.0 million (S$952.9 million), made its debut on the Singapore Exchange last Friday (Nov 26). 
The initial public offer (IPO) attracted strong support from institutional, corporate, and retail investors.

The placement tranche was 4.9 times subscribed while the public tranche was 9.5 times subscribed. 
In addition, cornerstone investors, including Bangkok Life Assurance Public Co, Credit Suisse, DBS, DWS Investments Australia, Kuang Ming Investments, Nomura Singapore, Hazelview Securities, and Metro ARC Investments, have subscribed for an aggregate of 336 million units, which represents 49.8 per cent of the total number of outstanding units at the IPO.

Despite having an IPO portfolio of pure Japan assets, DHLT is established with the investment strategy of principally investing in a portfolio of income-producing logistics and industrial real estate assets located across Asia.

The Reit believes that there is strong growth potential for logistics and industrial assets throughout South-east Asia, where its sponsor, Daiwa House Industry, has completed 9 logistics assets across the region and has 5 logistics facility projects under development across Vietnam, Indonesia and Malaysia as at Sep 30, 2021. 
DHLT offers a diversified initial IPO portfolio of 14 assets which are spread across various regions in prime industrial locations in Japan.

The Reit manager believes that this diversified portfolio will minimise concentration risk and allow it to take advantage of markets which have traditionally been overlooked by existing Japanese-listed and private Reits.

The 14 properties are closely interlinked with transportation and shipping networks, which is attractive for DHLT's large third-party logistics (3PL) and e-commerce tenant base.

The Reit manager has strong commitment to environment, social and governance (ESG) principles, and noted that approximately 95.7 per cent of the IPO portfolio by NLA is certified green by the Development Bank of Japan (DBJ) Green Building Certification Programme, a rating system in Japan which evaluates and measures the environmental and social awareness characteristics of real estate properties.

As at Oct 1, 2021, the IPO portfolio's occupancy rate is 96.3 per cent with 26 tenants.

All of the properties are fully occupied, apart from DPL Sapparo Higashi Kariki and DPL Koriyama.

The aggregate weighted average lease expiry (WALE) for the IPO portfolio by occupied net lettable area (NLA) is 7.2 years as at Jun 30, 2021.

According to the IPO prospectus, the forecasted annualised distribution yield for the period between Oct 1, 2021 and Dec 31, 2021 is 6.3 per cent while the projected distribution yield for financial year 2022 is 6.5 per cent, representing respective spreads of 625 bps and 645 bps compared to the 10-year Japan government bond yield of 0.05 per cent as at Oct 1, 2021.

Following the listing of DHLT, the Singapore Reit and property trust sector now consists of 43 listed trusts of which 9 are industrial Reits (including DHLT).

The average distribution yield of the 9 industrial Reits is 6.1 per cent, including DHLT's forecasted annualised yield of 6.3 per cent for 2021. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/logistics-s-reit-with-pure-japan-assets-lists-on-sgx"> read </a>the original version.
</body></html>


      
    
    Daiwa house logistics


Daiwa House Logistics Trust (DHLT), which has an initial portfolio (IPO Portfolio) of 14 logistics properties in Japan with an aggregate appraised value of approximately ¥80,570.0 million (S$952.9 million), made its debut on the Singapore Exchange last Friday (Nov 26).  
The initial public offer (IPO) attracted strong support from institutional, corporate, and retail investors.

The placement tranche was 4.9 times subscribed while the public tranche was 9.5 times subscribed.  
In addition, cornerstone investors, including Bangkok Life Assurance Public Co, Credit Suisse, DBS, DWS Investments Australia, Kuang Ming Investments, Nomura Singapore, Hazelview Securities, and Metro ARC Investments, have subscribed for an aggregate of 336 million units, which represents 49.8 per cent of the total number of outstanding units at the IPO.

Despite having an IPO portfolio of pure Japan assets, DHLT is established with the investment strategy of principally investing in a portfolio of income-producing logistics and industrial real estate assets located across Asia.

The Reit believes that there is strong growth potential for logistics and industrial assets throughout South-east Asia, where its sponsor, Daiwa House Industry, has completed 9 logistics assets across the region and has 5 logistics facility projects under development across Vietnam, Indonesia and Malaysia as at Sep 30, 2021.  
DHLT offers a diversified initial IPO portfolio of 14 assets which are spread across various regions in prime industrial locations in Japan.

The Reit manager believes that this diversified portfolio will minimise concentration risk and allow it to take advantage of markets which have traditionally been overlooked by existing Japanese-listed and private Reits.

The 14 properties are closely interlinked with transportation and shipping networks, which is attractive for DHLT's large third-party logistics (3PL) and e-commerce tenant base.

The Reit manager has strong commitment to environment, social and governance (ESG) principles, and noted that approximately 95.7 per cent of the IPO portfolio by NLA is certified green by the Development Bank of Japan (DBJ) Green Building Certification Programme, a rating system in Japan which evaluates and measures the environmental and social awareness characteristics of real estate properties.

As at Oct 1, 2021, the IPO portfolio's occupancy rate is 96.3 per cent with 26 tenants.

All of the properties are fully occupied, apart from DPL Sapparo Higashi Kariki and DPL Koriyama.

The aggregate weighted average lease expiry (WALE) for the IPO portfolio by occupied net lettable area (NLA) is 7.2 years as at Jun 30, 2021.

According to the IPO prospectus, the forecasted annualised distribution yield for the period between Oct 1, 2021 and Dec 31, 2021 is 6.3 per cent while the projected distribution yield for financial year 2022 is 6.5 per cent, representing respective spreads of 625 bps and 645 bps compared to the 10-year Japan government bond yield of 0.05 per cent as at Oct 1, 2021.

Following the listing of DHLT, the Singapore Reit and property trust sector now consists of 43 listed trusts of which 9 are industrial Reits (including DHLT).

The average distribution yield of the 9 industrial Reits is 6.1 per cent, including DHLT's forecasted annualised yield of 6.3 per cent for 2021.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Logistics S-Reit with pure Japan assets lists on SGX

Singapore

DBS Group Holdings Limited and its subsidiaries provide a variety of financial services.  The Company offers services including mortgage financing, lease and hire purchase financing, nominee and trustee, funds management, corporate advisory and brokerage .  DBS Group also acts as the primary dealer in Singapore government securities.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

DBS Group Holdings (DBSDY US)

Grab SPAC Listing - Thoughts on Valuation, Lock-Up Release

On 13th Apr 21, Grab announced that it plans to go public in the US in partnership with Altimeter Growth Corp at an equity val of US$39.6bn. In...

Sumeet Singh

Grab SPAC Listing - Still Firing on Only One Cylinder - Lit by Consumer Incentives

In Apr 21, Grab announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of...

Sumeet Singh

Yangzijiang Shipbuilding (YZJSGD SP): Investment Ops Spin-Off

Pricing does not reflect this latest shipbuilding supercycle: the current order book is ~50% higher than the last supercycle. YSH's major yards are...

David Blennerhassett

2022 High Conviction - Kakao Bank - A Long Way to Go

Kakao Bank (KB) is South Korea’s largest digital bank. It's a subsidiary of Kakao, which holds a 27.3% stake post listing.

Sumeet Singh

REIT Watch - Logistics S-Reit with pure Japan assets lists on SGX

Daiwa House Logistics Trust (DHLT), which has an initial portfolio (IPO Portfolio) of 14 logistics properties in Japan with an...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)