APAC IPOs & Placements

Zhen Zhou, Toh

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

National Australia Bank / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/national-australia-bank-ltd" target="_blank" data-smartkarma-citation="entities:15:1" rel="noopener">National Australia Bank (NAB AU)</a> is looking to raise A$3bn in its fully underwritten institutional placement to bolster its capital in light of the economic impact from the virus outbreak. In this note, we will briefly look through the earnings result, run the deal through our framework and share our thoughts on the deal.

National Australia Bank (NAB AU) is looking to raise A$3bn in its fully underwritten institutional placement to bolster its capital in light of the economic impact from the virus outbreak. In this note, we will briefly look through the earnings result, run the deal through our framework and share our thoughts on the deal.

National Australia Bank Placement - Risk Reward Favorable but Outlook Still Uncertain

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

Australia & New Zealand Bankin / Equity Bottom-Up

Australia’s banks stand out in Asia-Pacific and globally, in many respects, with high wholesale funding, high dividend payout ratios and operating in a relatively benign environment for longer than others. <a href="https://www.smartkarma.com/entities/aust-and-nz-banking-group" target="_blank" data-smartkarma-citation="entities:443:1" rel="noopener">Australia And New Zealand Banking Group (ANZ) (ANZ AU)</a> shows this last aspect well, with credit costs in the latest year at just a fraction of its historical peak and also well below its long-term average; in fact, ANZ’s credit costs/loans is close to its all-time low over the past few decades. The risk of ramp up, is significant.

Australia’s banks stand out in Asia-Pacific and globally, in many respects, with high wholesale funding, high dividend payout ratios and operating in a relatively benign environment for longer than others. Australia And New Zealand Banking Group (ANZ) (ANZ AU) shows this last aspect well, with credit costs in the latest year at just a fraction of its historical peak and also well below its long-term average; in fact, ANZ’s credit costs/loans is close to its all-time low over the past few decades. The risk of ramp up, is significant.

Thematic (Sector/Industry)

There is risk that banks will have to cancel, suspend or cut dividends. During a period of low-cost or free loans from governments and regulators to banks, it is difficult to envisage that regulators would sanction these very same banks to provide most of their earnings to shareholders. There are varying degrees of risk depending on payout ratios. Several banks around the world have reported dividend payout ratios at 70% or higher. There is more to lose at these banks, than others and this could be another source of concern, other than credit and liquidity risk. Australia’s banks seem to have all of these risks, in spades.

There is risk that banks will have to cancel, suspend or cut dividends. During a period of low-cost or free loans from governments and regulators to banks, it is difficult to envisage that regulators would sanction these very same banks to provide most of their earnings to shareholders. There are varying degrees of risk depending on payout ratios. Several banks around the world have reported dividend payout ratios at 70% or higher. There is more to lose at these banks, than others and this could be another source of concern, other than credit and liquidity risk. Australia’s banks seem to have all of these risks, in spades.

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Commonwealth Bank of Australia / Equity Bottom-Up

<ul class="">
<li>Banks operating in New Zealand must raise Tier-1 capital from 12% to 16% of risk-weighted assets over seven years. </li>
<li>The big four Australian banks, who hold 90 percent of deposits in New Zealand, saw their share prices move in knee-jerk reaction. </li>
</ul>
<ul>
<li>The announcement adds to the existing headwinds such as consumer remediation costs, weak economic outlook, lower interest rates, and the rise of digital-only banks. </li>
</ul>
<ul>
<li>Based on their latest financials and exposure to New Zealand, I pick my favourite and least favourite bank stocks among the Big Four.</li>
</ul>


Banks operating in New Zealand must raise Tier-1 capital from 12% to 16% of risk-weighted assets over seven years. 
The big four Australian banks, who hold 90 percent of deposits in New Zealand, saw their share prices move in knee-jerk reaction. 


The announcement adds to the existing headwinds such as consumer remediation costs, weak economic outlook, lower interest rates, and the rise of digital-only banks. 


Based on their latest financials and exposure to New Zealand, I pick my favourite and least favourite bank stocks among the Big Four.


New Zealand's New Capital Buffer: Prefer CBA Over The Other Big Three

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>New CEO steps in to deal with AML mess. </li>
<li>Fines set to range between AUD 12.3 bn to AUD 301 bn, implying 2xd consensus or 3x market-cap and this is prior to Americans taking their pound of flesh.</li>
<li>Expect a significant capital raise.  </li>
</ul>


New CEO steps in to deal with AML mess. 
Fines set to range between AUD 12.3 bn to AUD 301 bn, implying 2xd consensus or 3x market-cap and this is prior to Americans taking their pound of flesh.
Expect a significant capital raise.  


Westpac - Let's See How The New CEO Handles These Fines

Australia

National Australia Bank Limited is an international banking group which operates in Australia, New Zealand, Europe, Asia and the United States.  The Group offers banking services, credit and access card facilities, leasing, housing and general finance, international and investment banking, wealth and funds management, life insurance and custodian, trustee and nominee services.

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National Australia Bank (NAB AU)

National Australia Bank Placement - Risk Reward Favorable but Outlook Still Uncertain

National Australia Bank (NAB AU) is looking to raise A$3bn in its fully underwritten institutional placement to bolster its capital in light of the...

Zhen Zhou, Toh

ANZ – At Historically Low Credit Costs

Australia’s banks stand out in Asia-Pacific and globally, in many respects, with high wholesale funding, high dividend payout ratios and operating...

Daniel Tabbush

Global Banks – Dividend Risk

There is risk that banks will have to cancel, suspend or cut dividends. During a period of low-cost or free loans from governments and regulators...

Daniel Tabbush

New Zealand's New Capital Buffer: Prefer CBA Over The Other Big Three

Banks operating in New Zealand must raise Tier-1 capital from 12% to 16% of risk-weighted assets over seven years. The big four Australian banks,...

Valerie Law, CFA

Westpac - Let's See How The New CEO Handles These Fines

New CEO steps in to deal with AML mess. Fines set to range between AUD 12.3 bn to AUD 301 bn, implying 2xd consensus or 3x market-cap and this is...

Thomas J. Monaco

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