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

Huaqin Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/huaqin-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40954:1" rel="noopener">Huaqin Technology (603296 CH)</a>, the world’s largest consumer electronics original design manufacturer, is pre-marketing an H-Share listing to raise around US$1 billion.   </li>
<li>Huaqin ranked as the largest consumer electronics ODM globally in 2024, with 22.5% market share.</li>
<li>The investment case is bearish as Huaqin’s rapid growth has come at the cost of margins and cash generation. Also, the valuation is unattractive compared to peer multiples. </li>
</ul>



Huaqin Technology (603296 CH), the world’s largest consumer electronics original design manufacturer, is pre-marketing an H-Share listing to raise around US$1 billion.   
Huaqin ranked as the largest consumer electronics ODM globally in 2024, with 22.5% market share.
The investment case is bearish as Huaqin’s rapid growth has come at the cost of margins and cash generation. Also, the valuation is unattractive compared to peer multiples. 


Huaqin H Share Listing: The Investment Case

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

Index Rebalance

GigaDevice Semiconductor  / Index Rebalance

<ul>
<li>With the review period complete, there are 5 non-constituents in direct inclusion zone and 5 current constituents in direct deletion zone. However, as usual, there will be discretion used.</li>
<li>5 changes result in a one-way turnover of 6.4%, leading to a round-trip trade of CNY 13bn (US$1.9bn). Index arb balances will increase the impact on the stocks.</li>
<li>Impact on the forecast adds varies between 0.2-0.3x ADV while the impact on the forecast deletes is a lot higher at 0.5-1.9x ADV. Index arb balance will further increase flow/impact.</li>
</ul>


With the review period complete, there are 5 non-constituents in direct inclusion zone and 5 current constituents in direct deletion zone. However, as usual, there will be discretion used.
5 changes result in a one-way turnover of 6.4%, leading to a round-trip trade of CNY 13bn (US$1.9bn). Index arb balances will increase the impact on the stocks.
Impact on the forecast adds varies between 0.2-0.3x ADV while the impact on the forecast deletes is a lot higher at 0.5-1.9x ADV. Index arb balance will further increase flow/impact.


SSE50 Index Rebalance Preview: Forecast Changes & Borderline Names for June

APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC 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.

WT Microelectronics / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wt-microelectronics-co-ltd" target="_blank" data-smartkarma-citation="entities:19712:1" rel="noopener">WT Microelectronics (3036 TT)</a> (WT Micro) is looking to raise up to US$393m, selling 90m shares(18m GDRs)via a GDR offering. It is also selling a two-year zero-coupon CB to raiseUS$350m.</li>
<li>Similar to previous GDR listings, the firm has undergone a long drawn out process prior to launching the deal, having to jump through a number of board/shareholder/regulatory approval loops.</li>
<li>In this note, we run the deal through our ECM framework and comment on deal dynamics.</li>
</ul>



WT Microelectronics (3036 TT) (WT Micro) is looking to raise up to US$393m, selling 90m shares(18m GDRs)via a GDR offering. It is also selling a two-year zero-coupon CB to raiseUS$350m.
Similar to previous GDR listings, the firm has undergone a long drawn out process prior to launching the deal, having to jump through a number of board/shareholder/regulatory approval loops.
In this note, we run the deal through our ECM framework and comment on deal dynamics.


WT Micro GDR Offering - Slightly Larger Deal to Digest, Discount Mostly in Line With Recent Deals

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wt-microelectronics-co-ltd" target="_blank" data-smartkarma-citation="entities:19712:1" rel="noopener">WT Microelectronics (3036 TT)</a> is looking to raise up to US$450m in its upcoming global depository receipts offering. The firm is also looking to raise another US$350m via convertible bonds.</li>
<li>In mid Oct 2025, WT Micro announced its board’s resolution to issue between 65-90m common shares via a GDR offering.</li>
<li>Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.</li>
</ul>



WT Microelectronics (3036 TT) is looking to raise up to US$450m in its upcoming global depository receipts offering. The firm is also looking to raise another US$350m via convertible bonds.
In mid Oct 2025, WT Micro announced its board’s resolution to issue between 65-90m common shares via a GDR offering.
Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.


WT Micro GDR Early Look - Not a Small One to Digest but Last Offering Did Well

China Northern Rare Earth Group High-Tech / Index Rebalance

China Northern Rare Earth Group High-Tech (600111 CH)

China Northern Rare Earth Group High-Tech

<ul>
<li>With the review period complete, there are 6 non-constituents in direct inclusion zone and 4 current constituents in direct deletion zone. However, as usual, there will be discretion used.</li>
<li>4 changes result in a one-way turnover of 4%, leading to a round-trip trade of CNY 17bn (US$2.4bn). Index arb balances will increase the impact on the stocks.</li>
<li>The index committee has used discretion in selecting the index adds and deletes and that could continue to be the case at this review too.</li>
</ul>


With the review period complete, there are 6 non-constituents in direct inclusion zone and 4 current constituents in direct deletion zone. However, as usual, there will be discretion used.
4 changes result in a one-way turnover of 4%, leading to a round-trip trade of CNY 17bn (US$2.4bn). Index arb balances will increase the impact on the stocks.
The index committee has used discretion in selecting the index adds and deletes and that could continue to be the case at this review too.


SSE50 Index Rebalance Preview: 4 Potential Changes in December

Taiwan

Foxconn Industrial Internet Co., Ltd. operates as a communication network equipment development company. The Company develops and sells network switches, routers, wireless devices, web servers, set top boxes, smart home gateways, and other products. Foxconn Industrial Internet also manufactures storage equipment.

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Foxconn Industrial Internet (601138 CH)

SSE50 Index Rebalance Preview: Forecast Changes & Borderline Names for June

There could be 5 changes. Estimated one-way turnover is 6.4% and round-trip trade is CNY 13bn (US$1.9bn). Index arb balance will increase flow and...

Brian Freitas

WT Micro GDR Offering - Slightly Larger Deal to Digest, Discount Mostly in Line With Recent Deals

WT Microelectronics (WT Micro) is looking to raise up to US$393m, selling 90m shares (18m GDRs) via a GDR offering. It is also selling a two-year...

Akshat Shah

WT Micro GDR Early Look - Not a Small One to Digest but Last Offering Did Well

WT Microelectronics (3036 TT) is looking to raise up to US$450m in its upcoming global depository receipts offering. The firm is also looking to...

Akshat Shah

SSE50 Index Rebalance Preview: 4 Potential Changes in December

There could be 4 changes for the index in Dec. The index committee has used discretion in the past and that is likely to continue. One-way turnover...

Brian Freitas

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Huaqin H Share Listing: The Investment Case

Huaqin, the world’s largest consumer electronics original design manufacturer, is pre-marketing an H-Share listing to raise around US$1 billion. In...

Arun George

SSE50 Index Rebalance Preview: Forecast Changes & Borderline Names for June

There could be 5 changes. Estimated one-way turnover is 6.4% and round-trip trade is CNY 13bn (US$1.9bn). Index arb balance will increase flow and...

Brian Freitas

WT Micro GDR Offering - Slightly Larger Deal to Digest, Discount Mostly in Line With Recent Deals

WT Microelectronics (WT Micro) is looking to raise up to US$393m, selling 90m shares (18m GDRs) via a GDR offering. It is also selling a two-year...

Akshat Shah

WT Micro GDR Early Look - Not a Small One to Digest but Last Offering Did Well

WT Microelectronics (3036 TT) is looking to raise up to US$450m in its upcoming global depository receipts offering. The firm is also looking to...

Akshat Shah

SSE50 Index Rebalance Preview: 4 Potential Changes in December

There could be 4 changes for the index in Dec. The index committee has used discretion in the past and that is likely to continue. One-way turnover...

Brian Freitas