IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The terms for the proposed combination of Keppel O&amp;M and <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> were announced. The agreed equity value exchange ratio between Keppel O&amp;M and Sembcorp Marine is 56%:44%. </li>
<li>The proposed combination will require <a href="https://www.smartkarma.com/entities/keppel-corp-ltd" target="_blank" data-smartkarma-citation="entities:12:1" rel="noopener">Keppel Corp (KEP SP)</a> and Sembcorp Marine shareholder approvals at separate EGMs and is expected to close in 4Q2022.</li>
<li>The transaction is a big win for Keppel shareholders as the proposed combination creates S$9.4 billion of value, which is around 80% of Keppel’s market cap at the last close.</li>
</ul>


The terms for the proposed combination of Keppel O&amp;M and Sembcorp Marine (SMM SP) were announced. The agreed equity value exchange ratio between Keppel O&amp;M and Sembcorp Marine is 56%:44%. 
The proposed combination will require Keppel Corp (KEP SP) and Sembcorp Marine shareholder approvals at separate EGMs and is expected to close in 4Q2022.
The transaction is a big win for Keppel shareholders as the proposed combination creates S$9.4 billion of value, which is around 80% of Keppel’s market cap at the last close.


Keppel: A Massive Winner from Keppel O&M and Sembcorp Marine’s Combination

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Keppel Corp and Sembcorp Marine have announced the O&amp;M business combination and it is a little more interesting than expected. It is a Very Big Desirable Order Book.</li>
<li>Separately, there is the potential for more index inclusion flow based on the conclusion of the combination in Q4.</li>
<li>The light at the end of the tunnel used to be far away, and one was never sure if it wasn't an oncoming train. It's closer and clearer now.</li>
</ul>


Keppel Corp and Sembcorp Marine have announced the O&amp;M business combination and it is a little more interesting than expected. It is a Very Big Desirable Order Book.
Separately, there is the potential for more index inclusion flow based on the conclusion of the combination in Q4.
The light at the end of the tunnel used to be far away, and one was never sure if it wasn't an oncoming train. It's closer and clearer now.


Sembcorp Marine and the Keppel O&M Business Combination - Brighter Light at the End of the Tunnel

<ul>
<li>20 months ago, Temasek walked away from a deal to buy control of <a href="https://www.smartkarma.com/entities/keppel-corp-ltd" target="_blank" data-smartkarma-citation="entities:12:1" rel="noopener">Keppel Corp (KEP SP)</a> as the O&amp;M business saw large writedowns and covid stoppage losses.</li>
<li>The story? A possible Keppel O&amp;M and <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> merger. SMM was recapped and spun out of <a href="https://www.smartkarma.com/entities/sembcorp-industries-ltd" target="_blank" data-smartkarma-citation="entities:1087:1" rel="noopener">Sembcorp Industries (SCI SP)</a> then recapped again. </li>
<li>Now it's crunch time. Keppel &amp; SMM hope to update investors on a merger plan by end of April. This insight looks at what to look out for.</li>
</ul>


20 months ago, Temasek walked away from a deal to buy control of Keppel Corp (KEP SP) as the O&amp;M business saw large writedowns and covid stoppage losses.
The story? A possible Keppel O&amp;M and Sembcorp Marine (SMM SP) merger. SMM was recapped and spun out of Sembcorp Industries (SCI SP) then recapped again. 
Now it's crunch time. Keppel &amp; SMM hope to update investors on a merger plan by end of April. This insight looks at what to look out for.


Keppel : Thinking About Keppel/SMM MergeCo and NEW KEPPEL Pro-Forma Opportunities

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yangzijiang-shipbuilding-holdings-limited" target="_blank" data-smartkarma-citation="entities:660:1" rel="noopener">Yangzijiang Shipbuilding (YZJSGD SP)</a> aims to spin off Yangzijiang Financial Holdings (YZJFH) through a dividend-in-specie of all the issued YZJFH shares to shareholders on a one-on-one basis.</li>
<li>YZJFH shares will be listed on the SGX-ST by way of an introduction. The EGM to approve the spin-off will be held on 18 April at 4 pm.</li>
<li>This transaction will unlock value. Our SoTP valuation is S$1.94 per share, which is a 22% upside to the last close price of S$1.59 per share.</li>
</ul>



Yangzijiang Shipbuilding (YZJSGD SP) aims to spin off Yangzijiang Financial Holdings (YZJFH) through a dividend-in-specie of all the issued YZJFH shares to shareholders on a one-on-one basis.
YZJFH shares will be listed on the SGX-ST by way of an introduction. The EGM to approve the spin-off will be held on 18 April at 4 pm.
This transaction will unlock value. Our SoTP valuation is S$1.94 per share, which is a 22% upside to the last close price of S$1.59 per share.


Yangzijiang: Proposed Spin-Off of YZJFH to Unlock Value

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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 Bottom-Up

<ul>
<li>After a 35% price decline in 2021 and 11% performance YTD, we are exploring if SMM is able to capitalize on the high oil price environment.</li>
<li>We will look at its recent financial performance, orderbook, and financial forecast in 2022.</li>
<li>We will also look at how to value the company and the key risk with our valuation.</li>
</ul>


After a 35% price decline in 2021 and 11% performance YTD, we are exploring if SMM is able to capitalize on the high oil price environment.
We will look at its recent financial performance, orderbook, and financial forecast in 2022.
We will also look at how to value the company and the key risk with our valuation.


Sembcorp Marine: Beneficiary of High Oil Price? Not so Fast

Singapore

Seatrium Ltd offers engineering solutions for the offshore, marine, and energy industries. The Company provides rigs and floaters, repairs and upgrades, offshore platforms, and specialized shipbuilding. Seatrium serves customers worldwide.

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Seatrium (STM SP)

Keppel: A Massive Winner from Keppel O&M and Sembcorp Marine’s Combination

The agreed equity value exchange ratio between Keppel O&M and Sembcorp Marine is 56%:44%. The transaction is a big win for Keppel shareholders as...

Arun George

Sembcorp Marine and the Keppel O&M Business Combination - Brighter Light at the End of the Tunnel

Keppel Corp and Sembcorp Marine have announced the combination of their O&M business after the restructuring of Keppel O&M, asset disposal, etc....

Travis Lundy

Keppel : Thinking About Keppel/SMM MergeCo and NEW KEPPEL Pro-Forma Opportunities

Keppel Corp and Sembcorp Marine appear on their way to a deal to merge their O&M businesses. The backdrop is healthier now. And it means a...

Travis Lundy

Yangzijiang: Proposed Spin-Off of YZJFH to Unlock Value

The EGM to approve the spin-off of YZJFH will be held on 18 April at 4 pm. This transaction will unlock value. Our SoTP valuation is S$1.94 per...

Arun George

Sembcorp Marine: Beneficiary of High Oil Price? Not so Fast

In this rapid response, we examine the business of Sembcorp Marine and are of the view that the high oil price will not translate into a more...

Ke Yan, CFA, FRM

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