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

Invincible Investment / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/invincible-investment-corp" target="_blank" data-smartkarma-citation="entities:3617:1" rel="noopener">Invincible Investment (8963 JP)</a> plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.</li>
<li>The stock has done well over the past year and so have most of its deals which we have covered in the past.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Invincible Investment (8963 JP) plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.
The stock has done well over the past year and so have most of its deals which we have covered in the past.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Invincible Investment Corp Placement - Decent Accretion Despite the Large Dilution

Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<div><p>On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.</p></div><div>
<p>While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <a href="https://www.smartkarma.com/insights/j-reit-offering-primer-get-ready-for-offering-season-2021" target="_blank" data-smartkarma-citation="insights:46416" rel="noopener">J-REIT Offering Primer: Get Ready for Offering Season 2021</a>. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - <a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> - with greater emphasis on the potential for strong post-offering secondary market performance. </p>
<p><a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> today announced a follow-on equity offering after market-close to fund part of their recent property acquisitions. The primary offer quantity is 82,800 units. In addition, there will also be an over-allotment quantity of 4,200 units. The total size of this offering could be roughly ¥14.6bn (~US$130mn). This is the second such follow-on offering this year, with a previous offering announced in March covered in <em><a href="https://www.smartkarma.com/insights/jreit-offering-hulic-reit-inc-3295-jp-take-it-vs-comps" target="_blank" data-smartkarma-citation="insights:49757" rel="noopener">JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)</a></em> at the time.</p>
<div><p><em>More below the fold. </em></p></div>
</div>

On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.
While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - Hulic Reit Inc (3295 JP) - with greater emphasis on the potential for strong post-offering secondary market performance. 
Hulic Reit Inc (3295 JP) today announced a follow-on equity offering after market-close to fund part of their recent property acquisitions. The primary offer quantity is 82,800 units. In addition, there will also be an over-allotment quantity of 4,200 units. The total size of this offering could be roughly ¥14.6bn (~US$130mn). This is the second such follow-on offering this year, with a previous offering announced in March covered in JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps) at the time.
More below the fold. 


Hulic Reit (3295 JP): Offering Could Trigger Outperformance Vs Peers

Alpha-Centric ESG Research

Kyle Rudden

<p>Announcements keep on coming from <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange (SGX SP)</a> and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the <a href="https://www.smartkarma.com/entities/sgx-nikkei-esg-reit-index-futures" target="_blank" data-smartkarma-citation="entities:33480:1" rel="noopener">SGX Nikkei ESG-REIT Index Futures (JRTA INDEX)</a> contract.</p><p>For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.</p><p>Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.</p><p>Think about it. One billion buildings in the world already, and expected to double by 2060.</p>

Announcements keep on coming from Singapore Exchange (SGX SP) and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the SGX Nikkei ESG-REIT Index Futures (JRTA INDEX) contract.For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.Think about it. One billion buildings in the world already, and expected to double by 2060.

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

<p>Last Friday after market close, small-cap JREIT <a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> announced a fo<a href="https://www.hulic-reit.co.jp/file/en-news-3ba766fef9389cc1bc51ae39be5e8069adeffcf9.pdf" target="_blank" rel="noopener">llow-on equity offering</a> to fund part of their recent property acquisition. </p><p>The primary offer quantity is 39,000 units and there is also an over-allotment quantity of 2,000 units. The size of this offering could be around ¥6.7bn (~US$60mn).</p><div><p>The Offer Price will be determined between 1st April and 5th April (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date. </p></div><div><p><em>More below the fold.</em></p></div>

Last Friday after market close, small-cap JREIT Hulic Reit Inc (3295 JP) announced a follow-on equity offering to fund part of their recent property acquisition. The primary offer quantity is 39,000 units and there is also an over-allotment quantity of 2,000 units. The size of this offering could be around ¥6.7bn (~US$60mn).The Offer Price will be determined between 1st April and 5th April (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date. More below the fold.

JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)

<p>In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.</p>
<p>Historically, January and February are the busiest months, for a variety of reasons.</p>
<p>From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. </p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/179/233/original/Number%20of%20Historical%20Offerings%20by%20Calendar%20Month.png?1608207336" class="editor-image img-responsive" data-smartkarma-image-id="179233"></figure>
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Source: Quiddity, Capital IQ (Data)</div>
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.</section>

In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.
Historically, January and February are the busiest months, for a variety of reasons.
From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. 









Source: Quiddity, Capital IQ (Data)
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.

J-REIT Offering Primer: Get Ready for Offering Season 2021

Japan

Hulic Reit, Inc. is a real estate investment trust which mainly invests in real estate and securitized real estate products. The Company invests mainly in properties which are business offices, commercial buildings and nursing homes.

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Hulic Reit Inc (3295 JP)

Invincible Investment Corp Placement - Decent Accretion Despite the Large Dilution

Invincible Investment plans to raise around US$230m to fund the acquisition of six hotel assets in Japan. In this note, we talk about the deal...

Sumeet Singh

Hulic Reit (3295 JP): Offering Could Trigger Outperformance Vs Peers

Small-cap diversified JREIT Hulic REIT launched a follow-on equity offering for JPY14.6bn (US$130mn) which could act as a catalyst to trigger...

Janaghan Jeyakumar, CFA

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

Singapore Exchange just launched the SGX Nikkei ESG-REIT Index futures contract. A multi-win for SGX, but it also serves as a reminder of how...

Kyle Rudden

JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)

HULIC REIT - a smallcap diversified JREIT has launched a small offer to finance asset purchases. Secondary offerings have a good index-relative...

Janaghan Jeyakumar, CFA

J-REIT Offering Primer: Get Ready for Offering Season 2021

JREIT Follow-On Offerings - A Primer: January and February are the busiest times of the year for a variety of reasons and there are multiple...

Janaghan Jeyakumar, CFA

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