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.

Equity Capital Markets

Lotte Global Logistics / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lotte-global-logistics-co" target="_blank" data-smartkarma-citation="entities:45000:1" rel="noopener">Lotte Global Logistics (LGG KS)</a> aims to raise around US$140m in its Korea IPO via selling a mix of primary and secondary shares.</li>
<li>Lotte Global Logistics is a logistics and shipping company engaged in a comprehensive logistics service business including courier service, land transportation, 3PL, port loading and unloading, and international logistics.</li>
<li>In this note, we talk about the company’s historical performance.</li>
</ul>



Lotte Global Logistics (LGG KS) aims to raise around US$140m in its Korea IPO via selling a mix of primary and secondary shares.
Lotte Global Logistics is a logistics and shipping company engaged in a comprehensive logistics service business including courier service, land transportation, 3PL, port loading and unloading, and international logistics.
In this note, we talk about the company’s historical performance.


Lotte Logistics Pre-IPO - Sluggish Revenues, High Dependence on Group Affiliates

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Lotte Global Logistics is getting ready to complete its IPO in KOSPI in May 2025. IPO price range is from 11,500 won and 13,500 won.</li>
<li>At the high end of the IPO price range, the expected public offering amount is 202 billion won.</li>
<li>According to the bankers' valuation, the expected market cap after the IPO is 479 billion won to 562 billion won. </li>
</ul>


Lotte Global Logistics is getting ready to complete its IPO in KOSPI in May 2025. IPO price range is from 11,500 won and 13,500 won.
At the high end of the IPO price range, the expected public offering amount is 202 billion won.
According to the bankers' valuation, the expected market cap after the IPO is 479 billion won to 562 billion won. 


Equity Bottom-Up

It has been reported in the past few days that <a href="https://finance.naver.com/item/news_read.nhn?article_id=0000715983&amp;office_id=366&amp;code=180640&amp;sm=title_entity_id.basic" target="_blank" rel="noopener">Cho Hyun-Ah</a> sold 12 billion won worth ($1.1 million) of <a href="https://www.smartkarma.com/entities/hanjin-kal-corp" target="_blank" data-smartkarma-citation="entities:19086:1" rel="noopener">Hanjin KAL Corp (180640 KS)</a> shares in 2021. It appears that one of the reasons why she may have sold these shares was to pay for the inheritance tax of the late Hanjin Group Chairman Cho Yang-Ho. Cho Hyun-Ah needs to pay a total of nearly 60 billion won in inheritance taxes, broken down into 12 billion won payment per year.Although Korean Air has been infused with new, fresh capital, it is not all certain whether the company will best use the resources in the best ways possible. In other words, she may be waiting for her brother to make another mistake in managing the company. If one or two years later if enough shareholders decide that Cho Won-Tae and his assigned managers are not acting in the best interest of the shareholders, then his sister Cho Hyun-Ah may be waiting for an another shareholders battle against his brother. All in all, from a pair-trade perspective, the short term momentum is on the side of long Hanjin Kal and short Korean Air, which has worked so far since the end of the ban on many Korean stocks starting May 3. Given the huge price disparity between these two stocks in the past year, we think that this could be a nice trade as many investors look to close the gap on the two prices which have diverged greatly in the past year.

It has been reported in the past few days that Cho Hyun-Ah sold 12 billion won worth ($1.1 million) of Hanjin KAL Corp (180640 KS) shares in 2021. It appears that one of the reasons why she may have sold these shares was to pay for the inheritance tax of the late Hanjin Group Chairman Cho Yang-Ho. Cho Hyun-Ah needs to pay a total of nearly 60 billion won in inheritance taxes, broken down into 12 billion won payment per year.Although Korean Air has been infused with new, fresh capital, it is not all certain whether the company will best use the resources in the best ways possible. In other words, she may be waiting for her brother to make another mistake in managing the company. If one or two years later if enough shareholders decide that Cho Won-Tae and his assigned managers are not acting in the best interest of the shareholders, then his sister Cho Hyun-Ah may be waiting for an another shareholders battle against his brother. All in all, from a pair-trade perspective, the short term momentum is on the side of long Hanjin Kal and short Korean Air, which has worked so far since the end of the ban on many Korean stocks starting May 3. Given the huge price disparity between these two stocks in the past year, we think that this could be a nice trade as many investors look to close the gap on the two prices which have diverged greatly in the past year.

Hanjin Kal: Why Is Cho Hyun-Ah Selling A Partial Stake?

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Cross Asset Strategy

2020 saw Asia Pacific activist campaigns down 9.7% YoY. Considering the issues which played out over the year this is a better than expected result. What is key is that Asia remained resilient compared to Europe which saw a 16% YoY decline, in activism campaigns respectively. Sifting through the data highlights some interesting and share price impactful trends when looking at how Activism may play out in 2021.

2020 saw Asia Pacific activist campaigns down 9.7% YoY. Considering the issues which played out over the year this is a better than expected result. What is key is that Asia remained resilient compared to Europe which saw a 16% YoY decline, in activism campaigns respectively. Sifting through the data highlights some interesting and share price impactful trends when looking at how Activism may play out in 2021.

Notes from the Silk Road: Activism - 2020 Review Reveals Some Interesting Trends

Whilst Q4's list posted strong price performance it was a case that a rising tide floated most boats. As in the previous few quarters, we are on the watch for the risk of deteriorating credit metrics, but in particular during H1 2021. In Q1, the Altman Z score is at a market-cap-weighted 1.03 times, a significant decrease on the 1.52 in Q4. This deterioration needs to be monitored since earnings continue to be adjusted by analysts and their limited visibility of any bottoming. 25 stocks appear in our Q1 2021 screen, versus 15 in Q4 2020.

Whilst Q4's list posted strong price performance it was a case that a rising tide floated most boats. As in the previous few quarters, we are on the watch for the risk of deteriorating credit metrics, but in particular during H1 2021. In Q1, the Altman Z score is at a market-cap-weighted 1.03 times, a significant decrease on the 1.52 in Q4. This deterioration needs to be monitored since earnings continue to be adjusted by analysts and their limited visibility of any bottoming. 25 stocks appear in our Q1 2021 screen, versus 15 in Q4 2020.

Screening the Silk Road: Q1 2021 High Risk Names to Avoid

South Korea

Hanjin Transportation Co., Ltd. provides integrated transportation and logistics services.  The Company operates truck transportation, stevedoring, coastal shipping, passenger buses, and international freight services.

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

Hanjin Transportation Co (002320 KS)

Lotte Logistics Pre-IPO - Sluggish Revenues, High Dependence on Group Affiliates

Lotte Global Logistics (LGG KS) aims to raise around US$140m in its Korea IPO via selling a mix of primary and secondary shares.

Akshat Shah

Lotte Global Logistics IPO Preview

Lotte Global Logistics is getting ready to complete its IPO in KOSPI in May 2025. According to the bankers' valuation, the expected market cap...

Douglas Kim

Hanjin Kal: Why Is Cho Hyun-Ah Selling A Partial Stake?

From a pair-trade perspective, the short term momentum is on the side of long Hanjin Kal and short Korean Air, which has worked so far since the...

Douglas Kim

Notes from the Silk Road: Activism - 2020 Review Reveals Some Interesting Trends

2020 activism numbers are in with some interesting underlying trends reflecting possibilities of how campaigns in 2021 & 2022 may evolve notably...

David Lepper

Screening the Silk Road: Q1 2021 High Risk Names to Avoid

As in the previous few quarters, we are on the watch for the risk of deteriorating credit metrics, but in particular during H1 2021. 25 stocks...

David Lepper

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)