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>On 22 July, <a href="https://www.smartkarma.com/entities/arvida-group-ltd" target="_blank" data-smartkarma-citation="entities:14485:1" rel="noopener">Arvida (ARV NZ)</a> entered a scheme implementation agreement with Stonepeak at NZ$1.70, a 65.0% premium to the undisturbed price.</li>
<li>The transaction will require OIO approval, statutory supervisors' consent and shareholder approval. The <a href="https://www.smartkarma.com/entities/metlifecare-ltd" target="_blank" data-smartkarma-citation="entities:19219:1" rel="noopener">Metlifecare Ltd (MET NZ)</a> precedent suggests that the OIO and statutory supervisor should be forthcoming.</li>
<li>The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the gross/annualised spread was 4.9%/14.2%.  </li>
</ul>


On 22 July, Arvida (ARV NZ) entered a scheme implementation agreement with Stonepeak at NZ$1.70, a 65.0% premium to the undisturbed price.
The transaction will require OIO approval, statutory supervisors' consent and shareholder approval. The Metlifecare Ltd (MET NZ) precedent suggests that the OIO and statutory supervisor should be forthcoming.
The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the gross/annualised spread was 4.9%/14.2%.  


Arvida Group (ARV NZ): Stonepeak’s Binding Proposal at NZ$1.70

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>On June 27, <a href="https://www.smartkarma.com/entities/keywords-studios-plc" target="_blank" data-smartkarma-citation="entities:23476:1" rel="noopener">Keywords Studios (KWS LN)</a> received an updated cash offer of 2,450p/share from EQT (3.9% lower than initial 2,550p), 66.7% premium, implied EV €2,405 million, 13.2x EV/fwd NTM EBITDA,</li>
<li>22.4x Fwd P/E. The likelihood of a strategic buyer making an offer is low, while the offer from EQT is opportunistic, which will seek to merge Keywords with Virtuos.</li>
<li>The revised lower offer and the small extension to the PUSU deadline do not inspire optimism. Nevertheless, EQT remains a credible bidde. Gross spread stands at 5.9%. Maintain long.</li>
</ul>


On June 27, Keywords Studios (KWS LN) received an updated cash offer of 2,450p/share from EQT (3.9% lower than initial 2,550p), 66.7% premium, implied EV €2,405 million, 13.2x EV/fwd NTM EBITDA,
22.4x Fwd P/E. The likelihood of a strategic buyer making an offer is low, while the offer from EQT is opportunistic, which will seek to merge Keywords with Virtuos.
The revised lower offer and the small extension to the PUSU deadline do not inspire optimism. Nevertheless, EQT remains a credible bidde. Gross spread stands at 5.9%. Maintain long.


EQT/Keywords Studios: Lower Revised Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/keywords-studios-plc" target="_blank" data-smartkarma-citation="entities:23476:1" rel="noopener">Keywords Studios (KWS LN)</a> is in advanced discussions with EQT regarding a 2,550p/share possible cash offer (+1.76p final dividend), which the Board is minded to recommend. PUSU deadline is 15 June.</li>
<li>Premium (including divi) is c.74%; the implied equity value is c. €2,363 million and the implied EV is c. €2,477 million. The offer seems fair vs. the median of comparables. </li>
<li>The offer is pitched at a level that cannot be refused, even considering that Keywords Studios seemed grossly mispriced before the offer from EQT. Gross spread is 11.7%. Long.</li>
</ul>



Keywords Studios (KWS LN) is in advanced discussions with EQT regarding a 2,550p/share possible cash offer (+1.76p final dividend), which the Board is minded to recommend. PUSU deadline is 15 June.
Premium (including divi) is c.74%; the implied equity value is c. €2,363 million and the implied EV is c. €2,477 million. The offer seems fair vs. the median of comparables. 
The offer is pitched at a level that cannot be refused, even considering that Keywords Studios seemed grossly mispriced before the offer from EQT. Gross spread is 11.7%. Long.


EQT/Keywords Studios: An Offer You Can't Refuse

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perficient-inc" target="_blank" data-smartkarma-citation="entities:19838:1" rel="noopener">Perficient Inc (PRFT US)</a> agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.</li>
<li>I understand EQT has opted to present an offer that the Board could not refuse, on both EV/Fwd EBITDA and Fwd P/E basis.</li>
<li>Spread is 3.6%/6.2% (gross/annualised, assuming settlement by 16 December). Long.</li>
</ul>



Perficient Inc (PRFT US) agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.
I understand EQT has opted to present an offer that the Board could not refuse, on both EV/Fwd EBITDA and Fwd P/E basis.
Spread is 3.6%/6.2% (gross/annualised, assuming settlement by 16 December). Long.


EQT to Acquire Perficient for $3.0 Billion

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

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/trial-holdings-inc" target="_blank" data-smartkarma-citation="entities:36821:1" rel="noopener">Trial Holdings (5882 JP)</a> was hoping for better luck with its listing this time around.</li>
<li>For placements, it was a very busy week for a change with most regions, apart from Hong Kong, chipping in.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Trial Holdings (5882 JP) was hoping for better luck with its listing this time around.
For placements, it was a very busy week for a change with most regions, apart from Hong Kong, chipping in.


ECM Weekly (11th Mar 2024) - Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding

Sweden

EQT AB operates as an investment firm. The Company invests in equity, ventures, infrastructure, and real estate properties. EQT serves customers worldwide.

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EQT (EQT SS)

Arvida Group (ARV NZ): Stonepeak’s Binding Proposal at NZ$1.70

The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the...

Arun George

EQT/Keywords Studios: Lower Revised Offer

On June 27, Keywords received an updated (lower) cash offer of 2,450p/share from EQT, 66.7% premium, implied EV €2,405 million, 13.2x EV/fwd NTM...

Jesus Rodriguez Aguilar

EQT/Keywords Studios: An Offer You Can't Refuse

Keywords Studios (KWS LN) is in advanced discussions with EQT regarding a 2,550p/share possible cash offer (+1.76p final dividend), which the Board...

Jesus Rodriguez Aguilar

EQT to Acquire Perficient for $3.0 Billion

Perficient Inc (PRFT US) agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.

Jesus Rodriguez Aguilar

ECM Weekly (11th Mar 2024) - Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

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