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

<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>IPO activity appears to be picking up across the region, with deal in Japan, Hong Kong, US and Indonesia being lined up.</li>
<li>Placements as well picked up pace, despite the ongoing <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a>'s mega deal set to suck liquidity out of the system for a while. </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.
IPO activity appears to be picking up across the region, with deal in Japan, Hong Kong, US and Indonesia being lined up.
Placements as well picked up pace, despite the ongoing Japan Post Bank (7182 JP)'s mega deal set to suck liquidity out of the system for a while. 


ECM Weekly (12th Mar 2023) - Meituan, Japan Post Bank, SBI Sumishin, JFW, Ventia, Doosan, DXN, DPC

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Pavilion Real Estate Investment Trust / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pavilion-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:17395:1" rel="noopener">Pavilion Real Estate Investment Trust (PREIT MK)</a> is expected to raise MYR$1.27bn (US$280m) to partially fund its acquisition of Pavilion Bukit Jalil mall (PBJ mall). </li>
<li>Non-Interested unitholders will vote on the planned acquisition in the next EGM to be held on 22 March 2023.</li>
<li>In this note, we will discuss the deal dynamics, details on the planned acquisition, and the REIT's recent financial performance. </li>
</ul>



Pavilion Real Estate Investment Trust (PREIT MK) is expected to raise MYR$1.27bn (US$280m) to partially fund its acquisition of Pavilion Bukit Jalil mall (PBJ mall). 
Non-Interested unitholders will vote on the planned acquisition in the next EGM to be held on 22 March 2023.
In this note, we will discuss the deal dynamics, details on the planned acquisition, and the REIT's recent financial performance. 


Pavilion REIT Placement - MY$2.2bn (US$487m) Acquisition Expected to Increase Distributable Income

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/mapletree-commercial-trust" target="_blank" data-smartkarma-citation="entities:106" rel="noopener">Mapletree Commercial Trust (MCT SP)</a> and <a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> proposed merger to form Mapletree Pan Asia Commercial Trust (MPACT); DPU and NAV accretive to MCT unitholders</li><li>The transaction will be ~8.9% and ~6.5% of accretive to DPU and NAV, respectively, on a pro forma basis to MCT unitholders. As for MAGIC unitholders, total consideration is at an attractive premium over trading prices and implies a 1.0x P/NAV, translating into a 1-year total return of ~32.2%</li><li><a href="https://www.smartkarma.com/entities/capitaland-integrated-commercial-trust" target="_blank" data-smartkarma-citation="entities:105" rel="noopener">Capitaland Integrated Commercial Trust (CICT SP)</a> acquires 50% interest in Sydney office building for ~S$410m; DPU accretive by ~1%</li></ul>

Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) proposed merger to form Mapletree Pan Asia Commercial Trust (MPACT); DPU and NAV accretive to MCT unitholdersThe transaction will be ~8.9% and ~6.5% of accretive to DPU and NAV, respectively, on a pro forma basis to MCT unitholders. As for MAGIC unitholders, total consideration is at an attractive premium over trading prices and implies a 1.0x P/NAV, translating into a 1-year total return of ~32.2%Capitaland Integrated Commercial Trust (CICT SP) acquires 50% interest in Sydney office building for ~S$410m; DPU accretive by ~1%

ASEAN Builder's Scoop (3Jan22) - MCT/MAGIC Merger

<h2>Singapore</h2>
<h3>
<a href="https://www.smartkarma.com/entities/starhill-global-reit" target="_blank" data-smartkarma-citation="entities:10791" rel="noopener">Starhill Global REIT (SGREIT SP)</a> – Starting FY22E on a high note (BUY; TP S$0.71/Unit)</h3>
<p>2H21 Revenue/NPI have recovered to 90%/88% of 2H19’s. Recent resurgence of Covid-19 cases could weigh against rental reversions and demand further rental assistance. However, SGREIT’s resilient occupancy and master lease structure should offer DPU support. Reiterate BUY with higher TP $0.71/unit, as we rollover our valuations to FY22E. Faster than expected reopening of SG economy and tourism revival would be potential re-rating catalyst in FY22E.</p>
<ul>
<li>Positive surprise with rental rebates reversals and lower expenses. 2H21 revenue and NPI increased 10.5% and 20.2% YoY to S$92.9m and S$69.8m, respectively, mainly due to lower rental assistance and stronger AUD. FY21 revenue and NPI grew 0.3% and 2.0% YoY to S$181.3m and S$134.7m, respectively. S$3.2m of rental rebates reversals from Ngee Ann City and AUS assets were offset by higher rental rebates given to Wisma Atria tenants in 2H21. Overall, rental assistance amounted to c.S$9.6m in FY21 (vs. S$17m in FY20). Combined with adjustment to reflect timing difference of property tax refunds in SG, the absence of S$3.7m one-off capital allowance claim in 2H20, and release of S$4.6m deferred FY20 DI, 2H21 DPU was 195.7% higher at S$2.07c, bringing FY21 DPU 33.4% YoY higher to S$3.95c. The S$7.7m retained FY20 DI has been fully been released with S$0.14c in 1H21 and S$0.21c in 2H21. Excluding the deferred FY20 DI, DPU increased 77.1% and 8.8% YoY in 2H21 and FY21, respectively. FY21 revenue, NPI and DPU exceeded our full-year forecasts by 3.7%, 5.4%, and 12.1%, respectively</li>
<li>Sales has yet to recover to pre-Covid level but occupancies offer silver linings. Pressure at WA (Retail) persists with lower occupancy, lower rent and higher OpEx in 2H21. FY21 rent reversion for Retail came in at -11% vs. Office at -6%. Nonetheless, we take comfort in the resilient portfolio occupancy at 96.7% and committed SG Retail occupancy at 99.3%, supported by new tenant demand. With 15.1% of GRI is due for expiry in FY22E (of which, 11.6% are Retail leases and 3.6% are Office leases), mgmt. expects rent reversion, particularly for Retail’s, to be slight negative, alongside further rental rebates and lease restructuring in view of the renewed movement restrictions in SG and AUS</li>
<li>Reiterate BUY with higher TP of S$0.71/unit, as we roll over our valuations to FY22E. 36.1% gearing level would provide SGREIT financial flexibility in executing its long[1]term strategy to diversify into assets that generate stable cash flows and offers attractive yields. Mgmt. targets to acquire offi ce properties in key gateway cities in SG, AUS and JP, thus bringing revenue mix of Retail vs. Office to 50:50 (currently at 86:14) over the next 3-5 years. Potential launches of travel bubble, further easing of safe distancing measures, and greater proportion of workers returning to office should expedite SGREIT’s recovery in FY22E.</li>
</ul>

Singapore

Starhill Global REIT (SGREIT SP) – Starting FY22E on a high note (BUY; TP S$0.71/Unit)
2H21 Revenue/NPI have recovered to 90%/88% of 2H19’s. Recent resurgence of Covid-19 cases could weigh against rental reversions and demand further rental assistance. However, SGREIT’s resilient occupancy and master lease structure should offer DPU support. Reiterate BUY with higher TP $0.71/unit, as we rollover our valuations to FY22E. Faster than expected reopening of SG economy and tourism revival would be potential re-rating catalyst in FY22E.

Positive surprise with rental rebates reversals and lower expenses. 2H21 revenue and NPI increased 10.5% and 20.2% YoY to S$92.9m and S$69.8m, respectively, mainly due to lower rental assistance and stronger AUD. FY21 revenue and NPI grew 0.3% and 2.0% YoY to S$181.3m and S$134.7m, respectively. S$3.2m of rental rebates reversals from Ngee Ann City and AUS assets were offset by higher rental rebates given to Wisma Atria tenants in 2H21. Overall, rental assistance amounted to c.S$9.6m in FY21 (vs. S$17m in FY20). Combined with adjustment to reflect timing difference of property tax refunds in SG, the absence of S$3.7m one-off capital allowance claim in 2H20, and release of S$4.6m deferred FY20 DI, 2H21 DPU was 195.7% higher at S$2.07c, bringing FY21 DPU 33.4% YoY higher to S$3.95c. The S$7.7m retained FY20 DI has been fully been released with S$0.14c in 1H21 and S$0.21c in 2H21. Excluding the deferred FY20 DI, DPU increased 77.1% and 8.8% YoY in 2H21 and FY21, respectively. FY21 revenue, NPI and DPU exceeded our full-year forecasts by 3.7%, 5.4%, and 12.1%, respectively
Sales has yet to recover to pre-Covid level but occupancies offer silver linings. Pressure at WA (Retail) persists with lower occupancy, lower rent and higher OpEx in 2H21. FY21 rent reversion for Retail came in at -11% vs. Office at -6%. Nonetheless, we take comfort in the resilient portfolio occupancy at 96.7% and committed SG Retail occupancy at 99.3%, supported by new tenant demand. With 15.1% of GRI is due for expiry in FY22E (of which, 11.6% are Retail leases and 3.6% are Office leases), mgmt. expects rent reversion, particularly for Retail’s, to be slight negative, alongside further rental rebates and lease restructuring in view of the renewed movement restrictions in SG and AUS
Reiterate BUY with higher TP of S$0.71/unit, as we roll over our valuations to FY22E. 36.1% gearing level would provide SGREIT financial flexibility in executing its long[1]term strategy to diversify into assets that generate stable cash flows and offers attractive yields. Mgmt. targets to acquire offi ce properties in key gateway cities in SG, AUS and JP, thus bringing revenue mix of Retail vs. Office to 50:50 (currently at 86:14) over the next 3-5 years. Potential launches of travel bubble, further easing of safe distancing measures, and greater proportion of workers returning to office should expedite SGREIT’s recovery in FY22E.


ASEAN Builder's Scoop (06Aug21) - SGREIT Starting FY22E on a High Note

Deciphering real estate markets globally., Rems Advisors

TAN Kok Keong

Deciphering real estate markets globally.

Rems Advisors

<p>We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for <a href="https://www.smartkarma.com/entities/5225" target="_blank" data-smartkarma-citation="entities:5225:1">Country Garden Holdings Co (2007 HK)</a> to close all its showrooms in China.  The following are some observations from us, post-visit. </p><h2>Key observations from the visit</h2><p>The following are our key observations and feedback from agents/visitors we spoke to: </p><ul><li>
<strong>The number of visitors shrank: </strong>The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…</li></ul>

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co (2007 HK) to close all its showrooms in China.  The following are some observations from us, post-visit. Key observations from the visitThe following are our key observations and feedback from agents/visitors we spoke to: 
The number of visitors shrank: The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…

Seeing the Forest for the Trees in Malaysia - Country Garden

Malaysia

Pavilion Real Estate Investment Trust is a REIT. The Company invests, directly and indirectly, in a diversified portfolio of income producing real estate used for retail purposes in Malaysia and other countries within the Asia-Pacific region.

Pavilion Real Estate Investment Trust (PREIT MK)

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Pavilion Real Estate Investment Trust (PREIT MK)

ECM Weekly (12th Mar 2023) - Meituan, Japan Post Bank, SBI Sumishin, JFW, Ventia, Doosan, DXN, DPC

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

Pavilion REIT Placement - MY$2.2bn (US$487m) Acquisition Expected to Increase Distributable Income

Pavilion Real Estate Investment Trust (PREIT MK) is expected to raise MYR$1.27bn (US$280m) to partially fund its acquisition of Pavilion Bukit...

Clarence Chu

ASEAN Builder's Scoop (3Jan22) - MCT/MAGIC Merger

MCT/MAGIC merger; CICT buys Sydney office; KDCREIT buys UK DC; ART buys more US dormitories; ECWREIT buyers backed out; DASIN loan extension; VLL...

SCCM Asia Research

ASEAN Builder's Scoop (06Aug21) - SGREIT Starting FY22E on a High Note

SGREIT starting FY22E on a high note; Rising online sales trend continues; Mapletree issues fixed-for-life perps at 3.7%; Low base boosts RLC's...

SCCM Asia Research

Seeing the Forest for the Trees in Malaysia - Country Garden

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co...

TAN Kok Keong

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52-week Range

Market Cap (USDm)

P/E

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