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

MMG Limited plans to raise around US$220m via a primary placement. It plans to use the proceeds from the placement for potential future acquisitions and investments.In this insight, we'll run the deal through our ECM framework and talk about deal dynamics.

MMG Limited plans to raise around US$220m via a primary placement. It plans to use the proceeds from the placement for potential future acquisitions and investments.In this insight, we'll run the deal through our ECM framework and talk about deal dynamics.

MMG Limited Placement - Share near Highs Driven by Cooper Prices, Which Too Are at Highs

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

In mid-December, eight trading days after Vedanta promotor Anil Agarwal said the promoter (Vedanta Resources, himself, the associated companies) had no plans at all to increase their stake in <a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a> and no plans to make an Open Offer, the promoter launched a block bid to buy 4.98% in a post-market trade. The shares had climbed more than 50% in the previous two months to Rs 150/share, but the deal got done at Rs 160/share.Less than three weeks later, two entities controlled by <a href="https://www.smartkarma.com/entities/vedanta-resources-limited" target="_blank" data-smartkarma-citation="entities:22202:1" rel="noopener">Vedanta Resources (VED LN)</a> announced an intention to conduct an Open Offer to buy another 10% of its main Indian-listed asset, VEDL at the same Rs. 160/share price as the clearing price. But by that time (9 January), the price had risen past Rs. 180/share as global market movements had propelled gains in cyclicals and commodity markets had propelled the underlying products.But even then, VEDL was quite cheap on a relative basis. The question was about the nature of the Open Offer. Was it a real Open Offer?  Or was it designed for another purpose in mind? We still do not know the answer, but on 18 February the stock reached a new 2-year intraday high, closing at Rs. 195+/share. And VEDL is still not expensive vs peers. Q3 results at both HZ and at VEDL ex-HZ were great. VEDL ex-HZ Operating Income was the highest since March 2014, and VEDL ex-HZ Net Income in Q3 was the second highest non-accounting gimmick Net Income ever?Looking forward, consensus on VEDL is stale. It shows the largest negative number for VEDL ex-HZ OP in the modern VEDL era in Q4 this year despite strong commodity pricing.And VEDL still owes a lot of back dividends to its shareholders. And we await the Open Offer details.This and a lot more below.

In mid-December, eight trading days after Vedanta promotor Anil Agarwal said the promoter (Vedanta Resources, himself, the associated companies) had no plans at all to increase their stake in Vedanta Ltd (VEDL IN) and no plans to make an Open Offer, the promoter launched a block bid to buy 4.98% in a post-market trade. The shares had climbed more than 50% in the previous two months to Rs 150/share, but the deal got done at Rs 160/share.Less than three weeks later, two entities controlled by Vedanta Resources (VED LN) announced an intention to conduct an Open Offer to buy another 10% of its main Indian-listed asset, VEDL at the same Rs. 160/share price as the clearing price. But by that time (9 January), the price had risen past Rs. 180/share as global market movements had propelled gains in cyclicals and commodity markets had propelled the underlying products.But even then, VEDL was quite cheap on a relative basis. The question was about the nature of the Open Offer. Was it a real Open Offer?  Or was it designed for another purpose in mind? We still do not know the answer, but on 18 February the stock reached a new 2-year intraday high, closing at Rs. 195+/share. And VEDL is still not expensive vs peers. Q3 results at both HZ and at VEDL ex-HZ were great. VEDL ex-HZ Operating Income was the highest since March 2014, and VEDL ex-HZ Net Income in Q3 was the second highest non-accounting gimmick Net Income ever?Looking forward, consensus on VEDL is stale. It shows the largest negative number for VEDL ex-HZ OP in the modern VEDL era in Q4 this year despite strong commodity pricing.And VEDL still owes a lot of back dividends to its shareholders. And we await the Open Offer details.This and a lot more below.

Vedanta Soars Beyond Indicative Open Offer Level. Not Expensive

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.

Quantitative Analysis

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight the three weeks' consecutive inflow into HK Stocks via the southbound trade, led by Financials sector. Inflows into Tencent have been consistently positive. We also highlight outflows from auto manufacturers, such as Geely, Great Wall, and BYD. In the mid-cap space, we highlight Kingsoft, a leading mobile game and office software provider.

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight the three weeks' consecutive inflow into HK Stocks via the southbound trade, led by Financials sector. Inflows into Tencent have been consistently positive. We also highlight outflows from auto manufacturers, such as Geely, Great Wall, and BYD. In the mid-cap space, we highlight Kingsoft, a leading mobile game and office software provider. 

HK Connect Snippet: Auto Manufacturers, Kingsoft (2019-05-31)

Emerging markets PM, economist, CFA charterholder

Mark A. DeWeaver, PhD, CFA

<ul>
<li>China Minmetals subsidiary <a href="https://www.smartkarma.com/entities/13961" target="_blank" data-smartkarma-citation="entities:13961:1">Mmg Ltd (1208 HK)</a> is among the most successful Chinese overseas investors.</li>
<li>The company’s copper mines in Peru, DR Congo, and Laos and two zinc mines in Australia make it primarily a call on copper and zinc.</li>
<li>A Monte-Carlo simulation using re-sampled historical changes in copper and zinc prices, C1 costs, and LIBOR rates indicates that the shares would have to rise 107% from current levels to be fully valued.</li>
</ul>With a market cap of only USD 5 bn and average daily volume of…


China Minmetals subsidiary Mmg Ltd (1208 HK) is among the most successful Chinese overseas investors.
The company’s copper mines in Peru, DR Congo, and Laos and two zinc mines in Australia make it primarily a call on copper and zinc.
A Monte-Carlo simulation using re-sampled historical changes in copper and zinc prices, C1 costs, and LIBOR rates indicates that the shares would have to rise 107% from current levels to be fully valued.
With a market cap of only USD 5 bn and average daily volume of…

MMG as a Call on Copper and Zinc: 1 Million Iterations, 107% Upside

Australia

MMG is a mid-tier global resources company that explores, develops, and mines base metal deposits, including copper, zinc, gold, silver, lead, molybdenum, and cobalt. It operates projects across Australia, Botswana, the Democratic Republic of Congo, and Peru. The company is headquartered in Melbourne, Australia, and was founded in June 2009.

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MMG (1208 HK)

Vedanta Soars Beyond Indicative Open Offer Level. Not Expensive

VEDL is STILL cheap to peers relative, on a stub basis, on a fundamental basis using current or forward EV/consensus EBIT or EBITDA. We await the...

Travis Lundy

HK Connect Snippet: Auto Manufacturers, Kingsoft (2019-05-31)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

MMG as a Call on Copper and Zinc: 1 Million Iterations, 107% Upside

China Minmetals subsidiary Mmg Ltd (1208 HK) is among the most successful Chinese overseas investors. The company’s copper mines in Peru, DR...

Mark A. DeWeaver, PhD, CFA

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MMG Limited Placement - Share near Highs Driven by Cooper Prices, Which Too Are at Highs

MMG Limited plans to raise around US$220m via a primary placement. It plans to use the proceeds from the placement for potential future...

Sumeet Singh

Vedanta Soars Beyond Indicative Open Offer Level. Not Expensive

VEDL is STILL cheap to peers relative, on a stub basis, on a fundamental basis using current or forward EV/consensus EBIT or EBITDA. We await the...

Travis Lundy

HK Connect Snippet: Auto Manufacturers, Kingsoft (2019-05-31)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

MMG as a Call on Copper and Zinc: 1 Million Iterations, 107% Upside

China Minmetals subsidiary Mmg Ltd (1208 HK) is among the most successful Chinese overseas investors. The company’s copper mines in Peru, DR...

Mark A. DeWeaver, PhD, CFA