Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> rights offering caused some upset amongst investors. They got dilution where they did not need it, and de-leveraging from a REIT wanting to invest.</li>
<li>The units fell in price, then fell some more. Then the rights started trading.</li>
<li>Last week in <a href="https://www.smartkarma.com/insights/link-reit-823-nil-paid-rights-start-trading-tomorrow-the-trades" target="_blank" data-smartkarma-citation="insights:97326" rel="noopener">Link REIT (823) - Nil Paid Rights Start Trading Tomorrow - The Trades</a> I said strategy was to be long by Tuesday or Wednesday. It's Wednesday.</li>
</ul>

<ul>
<li>After being halted this morning before the start of trade, post-close, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> announced a fully-underwritten <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0210/2023021000480.pdf" target="_blank" rel="noopener">Rights Offering</a>. </li>
<li>The Rights Offering intends to raise HK$18.8bn issuing 1 Right for every 5 Shares held, at a subscription price of HK$44.20, a 26% discount to TERP. </li>
<li>This will take an already under-levered REIT and add more capital to it. And there is going to be selling pressure at some point.</li>
</ul>

<ul>
<li>In early February, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> announced it would do a 1 for 5 rights offering, with the Exercise Price well below TERP.</li>
<li>The REIT units dropped in price as the already unlevered REIT was not seen to be needing further deleverage and early debt repayment in a rising rate environment.</li>
<li>Units went ex-Rights on 24 February. The rights start trading tomorrow. That means flows. Of multiple kinds. Worth thinking about.</li>
</ul>

Sumeet Singh

Head of Research, IPOs & Placements

Aequitas Research

IPOs and Placements coverage across Asia Pacific

<ul>
<li>
<a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> (LREIT) aims to undertake a 1 for 5 rights issue at a subscription price of HK$44.20/unit, to raise around US$2.4bn.</li>
<li>After announcing a S$2.2bn acquisition in late Dec 2022, the company explicitly mentioned that it didn’t need to raise any new capital. Thus, the rights issue marks an abrupt turnaround.</li>
<li>In this note, we talk about the right issue, its previous acquisition and the overall implications.</li>
</ul>

Untying The Gordian Knot

Asia biased macro & technical analysis

Technical Analysis

<ul><li>At the beginning of the week, I was determined to have this post with a more bullish tone. Maybe it is a contrarian indicator.</li><li>But as of yesterday's market, I see that my efforts were rather over-optimistic.</li><li>The note is what is in front of me rather than speculating we are at the change in trend.</li></ul>

Hong Kong

Link REIT is a real estate investment trust in Hong Kong. The Trust owns and operates shopping centers, parking space facilities and real estate retail space.

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Link REIT (823 HK)

Link REIT (823) - Anchors Aweigh! Fair Weather Sailing Ahead

LINK REIT Rights trading ends soon. That's an end to obvious overhang. There may be a bit more when units are delivered in a few weeks. In the...

Travis Lundy

Big Link REIT (823 HK) Rights Offering

Link REIT (823 HK) is doing a Rights Offering. The Rights Offering is to raise HK$18.5bn or so (after fees). The Offering is for 425mm shares which...

Travis Lundy

Link REIT (823) - Nil Paid Rights Start Trading Tomorrow - The Trades

Link REIT (823 HK) rights start trading tomorrow. Well-sold in preparation AND there will be short-covering at the start for technical reasons....

Travis Lundy

Link REIT US$2.4bn Rights Issue - Mistimed but Yield at the Rights Price Might Be the Saving Grace

Link REIT (823 HK) (LREIT) aims to undertake a 1 for 5 rights issue at a subscription price of HK$44.20/unit, to raise around US$2.4bn. In this...

Sumeet Singh

HSI Properties, Link RIET, HSI Financials, China Merchants Bank, and ICBC

At the beginning of the week, I was determined to have this post with a more bullish tone. Maybe it is a contrarian indicator.

Untying The Gordian Knot

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