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

<ul>
<li>2023 marked our eighth year covering Equity Capital Markets in Asia Pacific. In 2023, IPOs didn’t pick up much from the low base of 2022  while placements showed upward momentum.</li>
<li>We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115 placements.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2023 marked our eighth year covering Equity Capital Markets in Asia Pacific. In 2023, IPOs didn’t pick up much from the low base of 2022  while placements showed upward momentum.
We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2023 IPOs and Placements Performance Review - IPOs Forming a Low Base, Placements Pick Up

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

Korea Stock Exchange KOSPI 200 / Event-Driven

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>Korea banned all short selling in March 2020 and resumed short selling only on <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150</a> index constituents in May 2021.</li>
<li>News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.</li>
<li>There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.</li>
</ul>


Korea banned all short selling in March 2020 and resumed short selling only on KOSPI 200 and KOSDAQ 150 index constituents in May 2021.
News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.
There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.


Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

AI and Energy Infrastructure, Explained Plainly, The Physical Layer

The Physical Layer

AI and Energy Infrastructure, Explained Plainly

A journal on the physical constraints behind the AI buildout: power, grid connection, data centres, cooling and the supply chains that gate them. Written to be understood by anyone.

Equity Bottom-Up

<ul><li>Ajinomoto, the Japanese company best known for seasoning, makes a thin film that sits between the layers of wiring under nearly all high-performance computer processors, by its own account.</li><li>AI chips sit on ever bigger and thicker bases, so by my reading each one needs more of that film than the chip before it.</li><li>Chipmakers rarely switch to a rival film, because testing a new one takes a long time, and that keeps the growth with Ajinomoto.</li></ul>

Ajinomoto, the Japanese company best known for seasoning, makes a thin film that sits between the layers of wiring under nearly all high-performance computer processors, by its own account.AI chips sit on ever bigger and thicker bases, so by my reading each one needs more of that film than the chip before it.Chipmakers rarely switch to a rival film, because testing a new one takes a long time, and that keeps the growth with Ajinomoto.

As AI chip packages grow, Ajinomoto's insulating film grows with them

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>In the past week, Palliser Capital provided an updated corporate governance improvement recommendations to LG Chem.</li>
<li>LG Chem has a market cap of 22.9 trillion won. LG Chem's 79.38% stake in LG Energy Solution is worth 73.3 trillion won which is 3.2x LG Chem's market cap. </li>
<li>BOD of LG Chem does not want to LOSE FACE, as it would rather partially sell its stake in LGES when its share price is higher, not lower. </li>
</ul>


In the past week, Palliser Capital provided an updated corporate governance improvement recommendations to LG Chem.
LG Chem has a market cap of 22.9 trillion won. LG Chem's 79.38% stake in LG Energy Solution is worth 73.3 trillion won which is 3.2x LG Chem's market cap. 
BOD of LG Chem does not want to LOSE FACE, as it would rather partially sell its stake in LGES when its share price is higher, not lower. 


Will LG Chem's Mgmt Listen to Palliser Capital This Time for Higher Shareholder Returns?

<ul>
<li>LG Chem is considering on paying higher dividends using sale proceeds from LG Energy Solution. </li>
<li>This breaks the company's principle of using only ordinary income from operating activities as a source for dividends.</li>
<li>If indeed LG Chem goes ahead with this plan, this would be as a result of heightened demands from major activist investors including Palliser Capital.</li>
</ul>


LG Chem is considering on paying higher dividends using sale proceeds from LG Energy Solution. 
This breaks the company's principle of using only ordinary income from operating activities as a source for dividends.
If indeed LG Chem goes ahead with this plan, this would be as a result of heightened demands from major activist investors including Palliser Capital.


LG Chem: Considering Higher Dividend Payout Using Sale Proceeds from LGES

South Korea

LG Chem Ltd. is a chemical manufacturer.  The Company's products include petrochemicals, plastic resins, and engineering plastics.  LG Chem also produces industrial and electronic materials.

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LG Chem Ltd (051910 KS)

Aequitas 2023 IPOs and Placements Performance Review - IPOs Forming a Low Base, Placements Pick Up

2023 was our eight year of covering Asia ECM. We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115...

Sumeet Singh

Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Media reports indicate that there could be a temporary short sell ban in Korea. This could lead to futures backwardation, market manipulation and a...

Brian Freitas

As AI chip packages grow, Ajinomoto's insulating film grows with them

Ajinomoto, the Japanese company best known for seasoning, makes a thin film that sits between the layers of wiring under nearly all...

The Physical Layer

Will LG Chem's Mgmt Listen to Palliser Capital This Time for Higher Shareholder Returns?

In a surprising move, LG Chem has decided to abide by many of the recent demands of the activist fund Palliser Capital. The LG Chem BOD has...

Douglas Kim

LG Chem: Considering Higher Dividend Payout Using Sale Proceeds from LGES

LG Chem is considering on paying higher dividends using sale proceeds from LG Energy Solution. We believe that its full year DPS for 2025 could...

Douglas Kim

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