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

Nomura Research Institute / Equity Capital Markets

<ul>
<li>Nomura Holdings is looking to raise around US$486m via selling 2.5% of Nomura Research.</li>
<li>This is not the first sale by Nomura and hence, might not come as a complete surprise.</li>
<li>In this note, we will run the deal through our ECM framework and talk about the recent updates.</li>
</ul>


Nomura Holdings is looking to raise around US$486m via selling 2.5% of Nomura Research.
This is not the first sale by Nomura and hence, might not come as a complete surprise.
In this note, we will run the deal through our ECM framework and talk about the recent updates.


Nomura Research Placement - Has Sold Before, Deal Might Be More Reflective on the Parent's Results

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Japan Financials have suffered a long-term decline in exposure.  Ownership has dropped from 56% of managers in December 2013 to just 31.2% today.</li>
<li>However, there are signs that these ownership declines are starting to reverse course, led by manager buying in Japan Post Holdings, Ms&amp;Ad Insurance and Sompo Holdings</li>
<li>If recent activity suggests a shift in sentiment for Japan Financials stocks, there is plenty of room for ownership levels to move higher from here.</li>
</ul>


Japan Financials have suffered a long-term decline in exposure.  Ownership has dropped from 56% of managers in December 2013 to just 31.2% today.
However, there are signs that these ownership declines are starting to reverse course, led by manager buying in Japan Post Holdings, Ms&amp;Ad Insurance and Sompo Holdings
If recent activity suggests a shift in sentiment for Japan Financials stocks, there is plenty of room for ownership levels to move higher from here.


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

Equity Bottom-Up

<ul>
<li>
Horta-Osorio Is Out:Credit Suisse Group (CSGN.VX) (“Credit Suisse”) Chairman Antonio Horta-Osório abruptly resigned on January 16, 2022, following breaches of quarantine rules in both Switzerland and the United Kingdom;</li>
<li>
Lehmann Not Lehman:With CEO Gottstein’s alleged resistance to strategic change, we remain cautious that the current strategic direction of Credit Suisse will not be maintained;  and   </li>
<li>
Blunders Could Force Sale:There have been numerous costly high profile blunders at Credit Suisse in 2021. A reversion to the “Bad Old Days” could force a sale.   </li>
</ul>



Horta-Osorio Is Out:Credit Suisse Group (CSGN.VX) (“Credit Suisse”) Chairman Antonio Horta-Osório abruptly resigned on January 16, 2022, following breaches of quarantine rules in both Switzerland and the United Kingdom;

Lehmann Not Lehman:With CEO Gottstein’s alleged resistance to strategic change, we remain cautious that the current strategic direction of Credit Suisse will not be maintained;  and   

Blunders Could Force Sale:There have been numerous costly high profile blunders at Credit Suisse in 2021. A reversion to the “Bad Old Days” could force a sale.   


SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-11/Capture_27.PNG' alt='Daiwa house logistics' />
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 <div class='content-caption'>Daiwa house logistics</div>
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Daiwa House Logistics Trust (DHLT), which has an initial portfolio (IPO Portfolio) of 14 logistics properties in Japan with an aggregate appraised value of approximately ¥80,570.0 million (S$952.9 million), made its debut on the Singapore Exchange last Friday (Nov 26). 
The initial public offer (IPO) attracted strong support from institutional, corporate, and retail investors.

The placement tranche was 4.9 times subscribed while the public tranche was 9.5 times subscribed. 
In addition, cornerstone investors, including Bangkok Life Assurance Public Co, Credit Suisse, DBS, DWS Investments Australia, Kuang Ming Investments, Nomura Singapore, Hazelview Securities, and Metro ARC Investments, have subscribed for an aggregate of 336 million units, which represents 49.8 per cent of the total number of outstanding units at the IPO.

Despite having an IPO portfolio of pure Japan assets, DHLT is established with the investment strategy of principally investing in a portfolio of income-producing logistics and industrial real estate assets located across Asia.

The Reit believes that there is strong growth potential for logistics and industrial assets throughout South-east Asia, where its sponsor, Daiwa House Industry, has completed 9 logistics assets across the region and has 5 logistics facility projects under development across Vietnam, Indonesia and Malaysia as at Sep 30, 2021. 
DHLT offers a diversified initial IPO portfolio of 14 assets which are spread across various regions in prime industrial locations in Japan.

The Reit manager believes that this diversified portfolio will minimise concentration risk and allow it to take advantage of markets which have traditionally been overlooked by existing Japanese-listed and private Reits.

The 14 properties are closely interlinked with transportation and shipping networks, which is attractive for DHLT's large third-party logistics (3PL) and e-commerce tenant base.

The Reit manager has strong commitment to environment, social and governance (ESG) principles, and noted that approximately 95.7 per cent of the IPO portfolio by NLA is certified green by the Development Bank of Japan (DBJ) Green Building Certification Programme, a rating system in Japan which evaluates and measures the environmental and social awareness characteristics of real estate properties.

As at Oct 1, 2021, the IPO portfolio's occupancy rate is 96.3 per cent with 26 tenants.

All of the properties are fully occupied, apart from DPL Sapparo Higashi Kariki and DPL Koriyama.

The aggregate weighted average lease expiry (WALE) for the IPO portfolio by occupied net lettable area (NLA) is 7.2 years as at Jun 30, 2021.

According to the IPO prospectus, the forecasted annualised distribution yield for the period between Oct 1, 2021 and Dec 31, 2021 is 6.3 per cent while the projected distribution yield for financial year 2022 is 6.5 per cent, representing respective spreads of 625 bps and 645 bps compared to the 10-year Japan government bond yield of 0.05 per cent as at Oct 1, 2021.

Following the listing of DHLT, the Singapore Reit and property trust sector now consists of 43 listed trusts of which 9 are industrial Reits (including DHLT).

The average distribution yield of the 9 industrial Reits is 6.1 per cent, including DHLT's forecasted annualised yield of 6.3 per cent for 2021. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/logistics-s-reit-with-pure-japan-assets-lists-on-sgx"> read </a>the original version.
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    Daiwa house logistics


Daiwa House Logistics Trust (DHLT), which has an initial portfolio (IPO Portfolio) of 14 logistics properties in Japan with an aggregate appraised value of approximately ¥80,570.0 million (S$952.9 million), made its debut on the Singapore Exchange last Friday (Nov 26).  
The initial public offer (IPO) attracted strong support from institutional, corporate, and retail investors.

The placement tranche was 4.9 times subscribed while the public tranche was 9.5 times subscribed.  
In addition, cornerstone investors, including Bangkok Life Assurance Public Co, Credit Suisse, DBS, DWS Investments Australia, Kuang Ming Investments, Nomura Singapore, Hazelview Securities, and Metro ARC Investments, have subscribed for an aggregate of 336 million units, which represents 49.8 per cent of the total number of outstanding units at the IPO.

Despite having an IPO portfolio of pure Japan assets, DHLT is established with the investment strategy of principally investing in a portfolio of income-producing logistics and industrial real estate assets located across Asia.

The Reit believes that there is strong growth potential for logistics and industrial assets throughout South-east Asia, where its sponsor, Daiwa House Industry, has completed 9 logistics assets across the region and has 5 logistics facility projects under development across Vietnam, Indonesia and Malaysia as at Sep 30, 2021.  
DHLT offers a diversified initial IPO portfolio of 14 assets which are spread across various regions in prime industrial locations in Japan.

The Reit manager believes that this diversified portfolio will minimise concentration risk and allow it to take advantage of markets which have traditionally been overlooked by existing Japanese-listed and private Reits.

The 14 properties are closely interlinked with transportation and shipping networks, which is attractive for DHLT's large third-party logistics (3PL) and e-commerce tenant base.

The Reit manager has strong commitment to environment, social and governance (ESG) principles, and noted that approximately 95.7 per cent of the IPO portfolio by NLA is certified green by the Development Bank of Japan (DBJ) Green Building Certification Programme, a rating system in Japan which evaluates and measures the environmental and social awareness characteristics of real estate properties.

As at Oct 1, 2021, the IPO portfolio's occupancy rate is 96.3 per cent with 26 tenants.

All of the properties are fully occupied, apart from DPL Sapparo Higashi Kariki and DPL Koriyama.

The aggregate weighted average lease expiry (WALE) for the IPO portfolio by occupied net lettable area (NLA) is 7.2 years as at Jun 30, 2021.

According to the IPO prospectus, the forecasted annualised distribution yield for the period between Oct 1, 2021 and Dec 31, 2021 is 6.3 per cent while the projected distribution yield for financial year 2022 is 6.5 per cent, representing respective spreads of 625 bps and 645 bps compared to the 10-year Japan government bond yield of 0.05 per cent as at Oct 1, 2021.

Following the listing of DHLT, the Singapore Reit and property trust sector now consists of 43 listed trusts of which 9 are industrial Reits (including DHLT).

The average distribution yield of the 9 industrial Reits is 6.1 per cent, including DHLT's forecasted annualised yield of 6.3 per cent for 2021.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Logistics S-Reit with pure Japan assets lists on SGX

<ul>
<li>Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.</li>
<li>As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.</li>
<li>In this note we undertake a peer comparison and talk about valuations.</li>
</ul>


Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note we undertake a peer comparison and talk about valuations.


Net Protections Holdings IPO - Peer Comparison and Thoughts on Valuation

Japan

Nomura Holdings, Inc. is a holding company which manages financial operations for its subsidiaries.  As a group, the Company provides a variety of financial services such as dealing, brokerage, underwriting, and asset management. Nomura Securities Co., a registered member of the New York and London Stock Exchanges, has branches around the world.

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Nomura Holdings (8604 JP)

Nomura Research Placement - Has Sold Before, Deal Might Be More Reflective on the Parent's Results

Nomura Holdings is looking to raise around US$486m via selling 2.5% of Nomura Research. This won't be the first selldown by the parent.

Sumeet Singh

Japan Financials: Bottoming Out?

Japan Financials have suffered a long-term decline in exposure among active Global fund managers. However, there are signs that ownership levels...

Steven Holden

Credit Suisse Group – Lehmann Moment

CREDIT SUISSE: Credit Suisse Chairman Horta-Osório resigned following breaches of quarantine. With the CEO’s resistance to strategic change, we are...

Thomas J. Monaco

REIT Watch - Logistics S-Reit with pure Japan assets lists on SGX

Daiwa House Logistics Trust (DHLT), which has an initial portfolio (IPO Portfolio) of 14 logistics properties in Japan with an...

Singapore Exchange Ltd (SGX)

Net Protections Holdings IPO - Peer Comparison and Thoughts on Valuation

Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares...

Sumeet Singh

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