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

National Storage REIT / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/national-storage-reit" target="_blank" data-smartkarma-citation="entities:13762:1" rel="noopener">National Storage REIT (NSR AU)</a> (NSREIT) aims to raise around US$200m (A$300m) via an institutional placement.</li>
<li>Past deals have ended up doing well, however, the stock now appears toppish and it's unclear if the deal was well flagged.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



National Storage REIT (NSR AU) (NSREIT) aims to raise around US$200m (A$300m) via an institutional placement.
Past deals have ended up doing well, however, the stock now appears toppish and it's unclear if the deal was well flagged.
In this note, we will talk about the placement and run the deal through our ECM framework.


National Storage REIT Placement - Past Deals Have Done Well but Stock Looks Toppish

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

Event-Driven

<ul>
<li>The upcoming rebalance of the MVIS Australia A-REIT Index will be implemented at the close on 17 March. There are no constituent changes, but there are float and capping changes.</li>
<li>Estimated one-way turnover at the rebalance is 1.8% resulting in a one-way trade of A$11.1m. There is limited impact on the index constituents.</li>
<li>The largest inflows are on <a href="https://www.smartkarma.com/entities/stockland" target="_blank" data-smartkarma-citation="entities:661:1" rel="noopener">Stockland</a>, <a href="https://www.smartkarma.com/entities/homeco-daily-needs-reit" target="_blank" data-smartkarma-citation="entities:33526:1" rel="noopener">HomeCo Daily Needs REIT</a>, <a href="https://www.smartkarma.com/entities/gpt-group" target="_blank" data-smartkarma-citation="entities:168:1" rel="noopener">Gpt Group</a> and <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall</a>, while the largest outflows are on <a href="https://www.smartkarma.com/entities/goodman-group" target="_blank" data-smartkarma-citation="entities:959:1" rel="noopener">Goodman Group</a>, <a href="https://www.smartkarma.com/entities/federation-centres" target="_blank" data-smartkarma-citation="entities:335:1" rel="noopener">Vicinity Centres</a>, <a href="https://www.smartkarma.com/entities/dexus" target="_blank" data-smartkarma-citation="entities:403:1" rel="noopener">Dexus Property</a> and <a href="https://www.smartkarma.com/entities/scentre-group" target="_blank" data-smartkarma-citation="entities:9538:1" rel="noopener">Scentre Group</a>.</li>
</ul>


The upcoming rebalance of the MVIS Australia A-REIT Index will be implemented at the close on 17 March. There are no constituent changes, but there are float and capping changes.
Estimated one-way turnover at the rebalance is 1.8% resulting in a one-way trade of A$11.1m. There is limited impact on the index constituents.
The largest inflows are on Stockland, HomeCo Daily Needs REIT, Gpt Group and Charter Hall, while the largest outflows are on Goodman Group, Vicinity Centres, Dexus Property and Scentre Group.


MVIS Australia A-REITs Index Rebalance:  Float/Capping Changes

Vicinity Centres / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/federation-centres" target="_blank" data-smartkarma-citation="entities:335:1" rel="noopener">Vicinity Centres (VCX AU)</a> aims to raise around US$800m (A$1.2bn) in order to shore up its balance sheet. The company has just announced that it won't pay any dividend for 2H20 (half year ending Jun 20), and that its portfolio valuation might be down 11-13%. While the placement itself is highly dilutive. However, the offer price is at multi-year lows and the stock appears to be already trading at a substantial discount to some of its peers.

Vicinity Centres (VCX AU) aims to raise around US$800m (A$1.2bn) in order to shore up its balance sheet. The company has just announced that it won't pay any dividend for 2H20 (half year ending Jun 20), and that its portfolio valuation might be down 11-13%. While the placement itself is highly dilutive. However, the offer price is at multi-year lows and the stock appears to be already trading at a substantial discount to some of its peers. 

Vicinity Centres Placement - Not Black and White but It Could Have Excess Stock

Transurban Group / Equity Capital Markets

Over the past two weeks, Australia and New Zealand have collectively seen over ten placements/entitlement offerings, of which we have covered nine. 
Along with the pick-up in deal activity we have also been fielding more questions about which other companies could come to the market. In this insight, we aim to narrow the list down.

Over the past two weeks, Australia and New Zealand have collectively seen over ten placements/entitlement offerings, of which we have covered nine. 
Along with the pick-up in deal activity we have also been fielding more questions about which other companies could come to the market. In this insight, we aim to narrow the list down.

Australia and New Zealand Candidates for Placement

Singapore Property Analyst

Anni Kum

Thematic (Sector/Industry)

Australia's <a href="https://www.smartkarma.com/entities/lend-lease-group" target="_blank" data-smartkarma-citation="entities:11248:1" rel="noopener">Lend Lease (LLC AU)</a> could be next to list its REIT in Singapore, according to news reports. To be named Lendlease Global Commercial REIT, the total asset value of the IPO could amount to S$1.4bn, comprising two known assets - 313@Somerset<a href="mailto:313@Somerset" target="_blank" rel="noopener"></a> in Singapore and a Grade A office-retail property in Milan, Italy. The listing market capitalization is said to be around S$1bn.Our initial thoughts on this anticipated IPO are that its asset base is small and its portfolio lacks diversity, though the portfolio statistics appear defensive.  The REIT is anchored on 313@Somerset<a href="mailto:313@Somerset," target="_blank" rel="noopener">,</a> a property that local investors are familiar with. However, there are concerns on the weak outlook for retail malls along the Orchard Road shopping belt and the political and economic crisis in Italy. Based on the estimated debt headroom, there is also a slight hint of a possible major rights issue in future for the acquisition of pipeline assets such as JEM and Parkway Parade. With the target launch of the IPO being in mid-September, LendLease could be lodging the preliminary IPO prospectus very soon. We will then have more information to do further evaluation on the REIT. LendLease will also be announcing its 2019 full year results this morning and there could be more updates on the IPO.

Australia's Lend Lease (LLC AU) could be next to list its REIT in Singapore, according to news reports. To be named Lendlease Global Commercial REIT, the total asset value of the IPO could amount to S$1.4bn, comprising two known assets - 313@Somerset in Singapore and a Grade A office-retail property in Milan, Italy. The listing market capitalization is said to be around S$1bn.Our initial thoughts on this anticipated IPO are that its asset base is small and its portfolio lacks diversity, though the portfolio statistics appear defensive.  The REIT is anchored on 313@Somerset, a property that local investors are familiar with. However, there are concerns on the weak outlook for retail malls along the Orchard Road shopping belt and the political and economic crisis in Italy. Based on the estimated debt headroom, there is also a slight hint of a possible major rights issue in future for the acquisition of pipeline assets such as JEM and Parkway Parade. With the target launch of the IPO being in mid-September, LendLease could be lodging the preliminary IPO prospectus very soon. We will then have more information to do further evaluation on the REIT. LendLease will also be announcing its 2019 full year results this morning and there could be more updates on the IPO.

Singapore REIT: Chasing the Next Global REIT IPO

Australia

Vicinity Centres retails asset and property management services. The Company offers a retail property investment and services organization involved in the ownership, management, and development of retail properties. The Company operates shopping centers across Australia.

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Vicinity Centres (VCX AU)

National Storage REIT Placement - Past Deals Have Done Well but Stock Looks Toppish

National Storage REIT (NSR AU) (NSREIT) aims to raise around US$200m (A$300m) via an institutional placement. In this note, we run the deal through...

Sumeet Singh

MVIS Australia A-REITs Index Rebalance: Float/Capping Changes

There are no constituent changes in March but there are float & capping changes. Estimated one-way turnover at the rebalance is 1.8% resulting in a...

Brian Freitas

Vicinity Centres Placement - Not Black and White but It Could Have Excess Stock

Vicinity Centres (VCX AU) aims to raise around US$800m (A$1.2bn) in order to shore up its balance sheet. The company has just announced that it...

Sumeet Singh

Australia and New Zealand Candidates for Placement

Over the past two weeks, Australia and New Zealand have collectively seen over ten placements/entitlement offerings, of which we have covered...

Sumeet Singh

Singapore REIT: Chasing the Next Global REIT IPO

Australia's Lend Lease (LLC AU) could be next to list its REIT in Singapore, according to news reports. To be named Lendlease Global Commercial...

Anni Kum

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