APAC IPOs & Placements, Aequitas Research

Clarence Chu

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kelly-services-inc-a" target="_blank" data-smartkarma-citation="entities:8499:1" rel="noopener">Kelly Services Inc A (KELYA US)</a> aims to raise around US$200m via selling its 3.8% stake in <a href="https://www.smartkarma.com/entities/temp-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1428:1" rel="noopener">Persol Holdings (2181 JP)</a>.</li>
<li>Kelly Services mentioned that it was looking to end its cross-shareholding with Persol Holdings in its earnings announcement. The two share a JV in PersolKelly.</li>
<li>In this note, we will run the deal through our ECM framework and comment on other deal dynamics.</li>
</ul>



Kelly Services Inc A (KELYA US) aims to raise around US$200m via selling its 3.8% stake in Persol Holdings (2181 JP).
Kelly Services mentioned that it was looking to end its cross-shareholding with Persol Holdings in its earnings announcement. The two share a JV in PersolKelly.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.


Persol Holdings Placement - Selldown by Cross-Shareholder

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>
<a href="https://www.smartkarma.com/entities/huitongda" target="_blank" data-smartkarma-citation="entities:33789:1" rel="noopener">Huitongda (9878 HK)</a> and <a href="https://www.smartkarma.com/entities/lepu-biopharma-co-ltd" target="_blank" data-smartkarma-citation="entities:33231:1" rel="noopener">Lepu Biopharma (LBP HK)</a> got the HK ECM market going post CNY.</li>
<li>There were no major placements this week apart from a few blocks in Korea and India.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Huitongda (9878 HK) and Lepu Biopharma (LBP HK) got the HK ECM market going post CNY.
There were no major placements this week apart from a few blocks in Korea and India.


ECM Weekly (13th Feb 2022) -Krafton, Huitongda, GogoX, Lepu, Adani Wilmar, Vedant, Mitsubishi Estate

Mitsubishi Estate Logistics / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mitsubishi-estate-logistics" target="_blank" data-smartkarma-citation="entities:25867:1" rel="noopener">Mitsubishi Estate Logistics (3481 JP)</a> (MEL) is looking to raise US$203m to acquire two new properties. </li>
<li>The properties are expected to be more accretive to DPU than its last year's placement, the deal has also been well-flagged and MEL has made capital raise an annual routine.</li>
<li>In this note, we will look at the assets to be acquired, impact on forecast and portfolio, and run the deal through our framework.</li>
</ul>



Mitsubishi Estate Logistics (3481 JP) (MEL) is looking to raise US$203m to acquire two new properties. 
The properties are expected to be more accretive to DPU than its last year's placement, the deal has also been well-flagged and MEL has made capital raise an annual routine.
In this note, we will look at the assets to be acquired, impact on forecast and portfolio, and run the deal through our framework.


Mitsubishi Estate Logistics Placement - Annual Routine

Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Mitsubishi Estate Logistics / Event-Driven

<ul>
<li>After the close on 7th February 2022, logistics JREIT <a href="https://www.smartkarma.com/entities/mitsubishi-estate-logistics" target="_blank" data-smartkarma-citation="entities:25867:1" rel="noopener">Mitsubishi Estate Logistics (3481 JP)</a> (<strong>"MEL"</strong>) announced a follow-on equity offering to fund part of their recently announced property acquisition. </li>
<li>The primary offer quantity is 56,000 units. In addition, there will also be an over-allotment quantity of 2,800 units. The total size of this offering could be roughly ¥24.5bn (~US$213mn). </li>
<li>Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.</li>
</ul>


After the close on 7th February 2022, logistics JREIT Mitsubishi Estate Logistics (3481 JP) ("MEL") announced a follow-on equity offering to fund part of their recently announced property acquisition. 
The primary offer quantity is 56,000 units. In addition, there will also be an over-allotment quantity of 2,800 units. The total size of this offering could be roughly ¥24.5bn (~US$213mn). 
Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.


Mitsubishi Estate Logistics (3481 JP): Offering Could Trigger Outperformance Vs Peers

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<ul>
<li>This should come as no surprise. <a href="https://www.smartkarma.com/entities/nagoya-railroad-co-ltd" target="_blank" data-smartkarma-citation="entities:8652:1" rel="noopener">Nagoya Railroad (9048 JP)</a> is buying out minorities in logistics unit <a href="https://www.smartkarma.com/entities/meitetsu-transport-co-ltd" target="_blank" data-smartkarma-citation="entities:1475:1" rel="noopener">Meitetsu Transport (9077 JP)</a>.  </li>
<li>Given the shareholder structure, this can be done and squeezed out with not a single share tendered, but it's ugly. </li>
<li>Logistics REITs trade at 1.3-1.5x book. This is being done at 0.55x book where just 1.0x book for the warehouse assets would be more than the EV at Takeover Price.</li>
</ul>


This should come as no surprise. Nagoya Railroad (9048 JP) is buying out minorities in logistics unit Meitetsu Transport (9077 JP).  
Given the shareholder structure, this can be done and squeezed out with not a single share tendered, but it's ugly. 
Logistics REITs trade at 1.3-1.5x book. This is being done at 0.55x book where just 1.0x book for the warehouse assets would be more than the EV at Takeover Price.


Meitetsu Transport (9077) Takeover - Parent "Stealing" Logistics Assets at 0.55x Book

Japan

Mitsubishi Estate Logistics REIT Investment Corporation operates real estate investment trust businesses. The Company provides logistics facilities investment trusts, business offices investment trusts, and other services. Mitsubishi Estate Logistics REIT Investment offers its services throughout Japan.

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Mitsubishi Estate Logistics (3481 JP)

Persol Holdings Placement - Selldown by Cross-Shareholder

Kelly Services (KELYA US) aims to raise around US$200m via selling its 3.8% stake in Persol Holdings. In this note, we will run the deal through...

Clarence Chu

ECM Weekly (13th Feb 2022) -Krafton, Huitongda, GogoX, Lepu, Adani Wilmar, Vedant, Mitsubishi Estate

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Mitsubishi Estate Logistics Placement - Annual Routine

Mitsubishi Estate Logistics (3481 JP) is looking to raise US$203m to acquire two new properties. In this note, we discuss the assets to be...

Clarence Chu