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>BGH’s revised scheme offer will pay $7.65 per <a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a> share, which is 0.7% and 2.0% higher than CapVest’s rival scheme (A$7.60) and off-market takeover offer (A$7.50), respectively.</li>
<li>BGH (19.99% stake) will vote against the CapVest scheme and will not accept any takeover offer from CapVest. Consequently, CapVest’s best option is an improved off-market takeover bid.</li>
<li>As CapVest's offer is marginally below BGH's revised offer, CapVest retains the potential to lob an improved offer, in our view.</li>
</ul>


BGH’s revised scheme offer will pay $7.65 per Virtus Health (VRT AU) share, which is 0.7% and 2.0% higher than CapVest’s rival scheme (A$7.60) and off-market takeover offer (A$7.50), respectively.
BGH (19.99% stake) will vote against the CapVest scheme and will not accept any takeover offer from CapVest. Consequently, CapVest’s best option is an improved off-market takeover bid.
As CapVest's offer is marginally below BGH's revised offer, CapVest retains the potential to lob an improved offer, in our view.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a> announced an offer from CapVest comprising of A$7.60 per share via a scheme (a 7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. </li>
<li>CapVest’s offer is contingent on exclusivity and cost recovery protections. The Board will recommend a binding offer of at least A$7.60 via a scheme or A$7.50 via an off-market takeover.</li>
<li>Due to the healthy premium to historical multiples and share prices implied by the CapVest offer, it is likely that BGH will be hesitant to start a bidding war.    </li>
</ul>



Virtus Health (VRT AU) announced an offer from CapVest comprising of A$7.60 per share via a scheme (a 7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. 
CapVest’s offer is contingent on exclusivity and cost recovery protections. The Board will recommend a binding offer of at least A$7.60 via a scheme or A$7.50 via an off-market takeover.
Due to the healthy premium to historical multiples and share prices implied by the CapVest offer, it is likely that BGH will be hesitant to start a bidding war.    


Virtus Receives a Competing Offer from CapVest

<ul>
<li>BGH Capital has lobbed a non-binding A$7.10 cash per share offer. The offer price represents a 36.3% premium to the unaffected price of A$5.21 (13 December).</li>
<li>On 13 December, BGH Capital acquired a 9.99% stake at A$7.10 per share and has entered into a swap deal for another 10.00% stake. </li>
<li>We think that the offer is reasonable in the context of historical share prices and multiples. At the last close price of A$6.70, the gross spread is 6.0%.</li>
</ul>


BGH Capital has lobbed a non-binding A$7.10 cash per share offer. The offer price represents a 36.3% premium to the unaffected price of A$5.21 (13 December).
On 13 December, BGH Capital acquired a 9.99% stake at A$7.10 per share and has entered into a swap deal for another 10.00% stake. 
We think that the offer is reasonable in the context of historical share prices and multiples. At the last close price of A$6.70, the gross spread is 6.0%.


Virtus Receives a A$7.10 Per Share Offer from BGH Capital

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bundamedik-tbk-pt" target="_blank" data-smartkarma-citation="entities:33563:1" rel="noopener">Bundamedik Tbk PT (BMHS IJ)</a> is a hospital operator in Indonesia, with focus on women and children. Its hospital business is recovering amid declining Covid cases in the country.</li>
<li>The company also has a network of IVF clinics under the Morula IVF brand, which is a differentiating factor for Bundamedik. IVF contributes nearly 30% of total revenue.</li>
<li>Bundamedik’s substantial revenue exposure to IVF and its aggressive expansion plan should justify its premium valuation compared to its peers.  </li>
</ul>



Bundamedik Tbk PT (BMHS IJ) is a hospital operator in Indonesia, with focus on women and children. Its hospital business is recovering amid declining Covid cases in the country.
The company also has a network of IVF clinics under the Morula IVF brand, which is a differentiating factor for Bundamedik. IVF contributes nearly 30% of total revenue.
Bundamedik’s substantial revenue exposure to IVF and its aggressive expansion plan should justify its premium valuation compared to its peers.  


PT Bundamedik (BMHS IJ): Improving Patients Volume and Profitability; IVF Sharpens Competitive Edge

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>Jinxin Fertility is a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US.</li>
<li>The company's growth will come from both organic and inorganic expansion, with recovery of international business as its long term catalyst.</li>
<li>The company's valuation is appealing with potential of more than 100% upside. </li>
</ul>


Jinxin Fertility is a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US.
The company's growth will come from both organic and inorganic expansion, with recovery of international business as its long term catalyst.
The company's valuation is appealing with potential of more than 100% upside. 


2022 High Conviction: Tail Winds for Jinxin Fertility

China

Jinxin Fertility Group is a leading international provider of assisted reproductive services (ARS) and assisted reproductive technology (ART). Its core offerings include In Vitro Fertilization (IVF), Intrauterine Insemination (IUI), egg retrieval, embryo transfer, and genetic screening, alongside a range of women's health services. The company is headquartered in Chengdu, China, and was founded in 1951.

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Jinxin Fertility (1951 HK)

BGH’s Revised Higher Offer for Virtus

BGH has returned with a revised offer of $7.65 per share, which is 7.7% higher than BGH’s original offer of A$7.10. CapVest’s (rival suitor) best...

Arun George

Virtus Receives a Competing Offer from CapVest

CapVest's offer comprises A$7.60 via a scheme (7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. Due to the healthy...

Arun George

PT Bundamedik (BMHS IJ): Improving Patients Volume and Profitability; IVF Sharpens Competitive Edge

Bundamedik is seeing recovery in its hospital business. Its dominant positioning in Indonesia IVF market sharpens Bundamedik's competitive edge...

Tina Banerjee

2022 High Conviction: Tail Winds for Jinxin Fertility

We like Jinxin Fertility as a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US. It...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

BGH’s Revised Higher Offer for Virtus

BGH has returned with a revised offer of $7.65 per share, which is 7.7% higher than BGH’s original offer of A$7.10. CapVest’s (rival suitor) best...

Arun George

Virtus Receives a Competing Offer from CapVest

CapVest's offer comprises A$7.60 via a scheme (7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. Due to the healthy...

Arun George

Virtus Receives a A$7.10 Per Share Offer from BGH Capital

BGH Capital has lobbed a non-binding A$7.10 cash per share offer, a 36.3% premium to the unaffected price. The offer is reasonable in the context...

Arun George

PT Bundamedik (BMHS IJ): Improving Patients Volume and Profitability; IVF Sharpens Competitive Edge

Bundamedik is seeing recovery in its hospital business. Its dominant positioning in Indonesia IVF market sharpens Bundamedik's competitive edge...

Tina Banerjee

2022 High Conviction: Tail Winds for Jinxin Fertility

We like Jinxin Fertility as a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US. It...

Ke Yan, CFA, FRM