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>CALB aims to raise around US$1.5bn in its Hong Kong IPO.</li>
<li>CALB undertakes design, R&amp;D, production and sales of EV batteries and Energy Storage Systems (ESS) products. </li>
<li>In this note, we talk about the updates from the company’s recent PHIP filings.</li>
</ul>


CALB aims to raise around US$1.5bn in its Hong Kong IPO.
CALB undertakes design, R&amp;D, production and sales of EV batteries and Energy Storage Systems (ESS) products. 
In this note, we talk about the updates from the company’s recent PHIP filings.


CALB Pre-IPO - PHIP Updates - Growth Picking up Further, Margins Turnaround

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

<ul>
<li>
<strong> Korean prefs have outperformed ords on a YTD basis, probably due to the LG Energy listing.</strong> Many of KOSPI's large-cap stocks have seen an outflow to make room for LGES.</li>
<li>
<strong>Samsung Electronics 1P</strong> and <strong>Mirae Asset 2PB</strong> have <strong>a negative pref-ord YTD yield difference</strong> and are currently <strong>below</strong><strong>-1.0σ on a 20-day MA</strong>.</li>
<li>Mirae widened the pref-ord spread by announcing an ord-only share buyback. So it should be seen as an outlier. Then,<strong> virtually all that remains is the Samsung Electronics 1P</strong>.</li>
</ul>



 Korean prefs have outperformed ords on a YTD basis, probably due to the LG Energy listing. Many of KOSPI's large-cap stocks have seen an outflow to make room for LGES.

Samsung Electronics 1P and Mirae Asset 2PB have a negative pref-ord YTD yield difference and are currently below-1.0σ on a 20-day MA.
Mirae widened the pref-ord spread by announcing an ord-only share buyback. So it should be seen as an outlier. Then, virtually all that remains is the Samsung Electronics 1P.


Korea Large-Cap Prefs: Pref-Ord YTD Yield Difference & 20-Day MA Sigma

LG Energy Solution / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of  the IPO price range .</li>
<li>LGES is the EV battery unit of LG Chem and it was spun off in December last year. The company is a major supplier to customers including Tesla and GM.</li>
<li>LGES will be included into MSCI and KOSPI. But MSCI’s fast entry could likely be scheduled with February’s quarterly review which will be effective only on 1st of March.</li>
</ul>



LG Energy Solution (373220 KS) (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of  the IPO price range .
LGES is the EV battery unit of LG Chem and it was spun off in December last year. The company is a major supplier to customers including Tesla and GM.
LGES will be included into MSCI and KOSPI. But MSCI’s fast entry could likely be scheduled with February’s quarterly review which will be effective only on 1st of March.


LG Energy IPO Trading - Allocations, Index, and Updates

Samsung Fire & Marine Insuranc / Event-Driven

<ul>
<li>Based on last Friday's closing price, <strong>the three stocks with a 20D MA sigma below -1.0 are LG Electronics 1P, Samsung SDI 1P, and Samsung E-M 1P</strong>.</li>
<li>Among the preferred shares with a yearend dividend yield of 5% or higher based on the FnGuide consensus, <strong>Kumho Petro Chemical 1P</strong> has a dividend yield of close to 10%.</li>
<li>
<strong>Four prefs</strong> have a Pref/Ord dividend yield spread of more than 2%p among those with a yearend dividend yield of more than 5%.</li>
</ul>


Based on last Friday's closing price, the three stocks with a 20D MA sigma below -1.0 are LG Electronics 1P, Samsung SDI 1P, and Samsung E-M 1P.
Among the preferred shares with a yearend dividend yield of 5% or higher based on the FnGuide consensus, Kumho Petro Chemical 1P has a dividend yield of close to 10%.

Four prefs have a Pref/Ord dividend yield spread of more than 2%p among those with a yearend dividend yield of more than 5%.


<p>Samsung SDI's share price experienced sharp volatility yesterday. After the market closed on Wednesday, a local media outlet reported that Samsung SDI plans to spin out the battery business division. As a result, the share price of Samsung SDI fell more than 6% as soon as the market opened yesterday. Then, at 2:13 pm, Samsung SDI issued a public notice denying this report. So, the share price reduced the decline to some extent, but it ended with a drop of more than 3%.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/299/original/1.png?1631832824" class="editor-image img-responsive" data-smartkarma-image-id="230299"></figure></section><p><a href="https://engkind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptNo=20210916000166&amp;docno=&amp;formProcsCd=070&amp;language=english" target="_blank" rel="noopener">Below is the public notice filed by Samsung SDI to deny the spinout report (KRX KIND).</a></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/300/original/2.png?1631832874" class="editor-image img-responsive" data-smartkarma-image-id="230300"></figure></section><hr><div class="content-highlight"><p><strong>The local media that reported this is a newspaper called The Elec. Although it is not a first-tier press, it specializes in the local tech sector, and its articles are highly reliable.</strong></p></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/301/original/3.png?1631833019" class="editor-image img-responsive" data-smartkarma-image-id="230301"></figure></section><p><a href="http://www.thelec.kr/news/articleView.html?idxno=14352" target="_blank" rel="noopener">Here is the link to the news article.</a> (English translation isn't available, but Google Translate will do the job nicely.)</p><p><strong>The main points of the article in this newspaper are as follows.</strong></p><div class="content-highlight"><ul>
<li><strong>Samsung SDI's key executives recently had a meeting to discuss the spin-off of the energy solution division responsible for the battery business. It is to attract investment in the battery business.</strong></li>
<li><strong>It is the first time within Samsung SDI that top management has discussed the spin-off of the battery business. However, a specific plan and schedule have not been decided yet.</strong></li>
<li><strong>Samsung SDI's management also discussed the sale of the electronic materials business, which accounts for about 20% of total sales, as another way to raise funds for investment.</strong></li>
</ul></div>

Samsung SDI's share price experienced sharp volatility yesterday. After the market closed on Wednesday, a local media outlet reported that Samsung SDI plans to spin out the battery business division. As a result, the share price of Samsung SDI fell more than 6% as soon as the market opened yesterday. Then, at 2:13 pm, Samsung SDI issued a public notice denying this report. So, the share price reduced the decline to some extent, but it ended with a drop of more than 3%.Below is the public notice filed by Samsung SDI to deny the spinout report (KRX KIND).The local media that reported this is a newspaper called The Elec. Although it is not a first-tier press, it specializes in the local tech sector, and its articles are highly reliable.Here is the link to the news article. (English translation isn't available, but Google Translate will do the job nicely.)The main points of the article in this newspaper are as follows.
Samsung SDI's key executives recently had a meeting to discuss the spin-off of the energy solution division responsible for the battery business. It is to attract investment in the battery business.
It is the first time within Samsung SDI that top management has discussed the spin-off of the battery business. However, a specific plan and schedule have not been decided yet.
Samsung SDI's management also discussed the sale of the electronic materials business, which accounts for about 20% of total sales, as another way to raise funds for investment.


Time to Short Samsung SDI on Inevitable ECO of Battery Unit or Massive Rights Offer

South Korea

Samsung SDI Co., Ltd. specializes in developing Lithium Ion Battery (LIB) technology. The Company also manufactures cathode ray tubes (CRTs) for televisions and computer monitors. Samsung SDI also produces liquid crystal display (LCD) components and rechargeable batteries for cellular phones, personal digital assistants (PDAs), Energy Storage Systems and solar panels.

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Samsung SDI Co Ltd (006405 KS)

CALB Pre-IPO - PHIP Updates - Growth Picking up Further, Margins Turnaround

CALB aims to raise around US$1.5bn in its Hong Kong IPO. In this note, we talk abou the updates from the company's recent PHIP filings.

Sumeet Singh

Korea Large-Cap Prefs: Pref-Ord YTD Yield Difference & 20-Day MA Sigma

This post examines Korea's large-cap preferred shares for their pref-ord YTD yield difference and sigma on a 20-day moving average.

Sanghyun Park

LG Energy IPO Trading - Allocations, Index, and Updates

LG Energy Solution (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range. LGES will be included into...

Sumeet Singh

Korea Prefs Yearend Dividend Plays

This post examines and discusses various dividend plays for Korea's preferred shares based on their expected dividend yields as we advance towards...

Sanghyun Park

Time to Short Samsung SDI on Inevitable ECO of Battery Unit or Massive Rights Offer

This post discusses the situation of Samsung SDI requiring either spinoff of the battery unit or a massive capital increase. So, the time has come...

Sanghyun Park

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