Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<ul>
<li>Hang Seng announced the results of the March rebalance post market close Friday. Two adds for the HSI, one set of changes for HSCEI, three sets for HSTECH.</li>
<li>An ad hoc rebalance was announced for the KOSDAQ150 following Osstem being designated an 'Administrative Issue'. In IPO world, we have LIC in India and SBI Sumishin NetBank coming up.</li>
<li>Friday was the review cutoff date for the March rebalance of the ASX200 Index. The ATO has provided Aventus with the tax ruling and that creates a timing issue.</li>
</ul>


Hang Seng announced the results of the March rebalance post market close Friday. Two adds for the HSI, one set of changes for HSCEI, three sets for HSTECH.
An ad hoc rebalance was announced for the KOSDAQ150 following Osstem being designated an 'Administrative Issue'. In IPO world, we have LIC in India and SBI Sumishin NetBank coming up.
Friday was the review cutoff date for the March rebalance of the ASX200 Index. The ATO has provided Aventus with the tax ruling and that creates a timing issue.


Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, HSCI, S&P/ASX, SET50, LIC, SBI Sumishin, Crown

<ul>
<li>There could be 2 changes to the ASX100 and ASX200 prior to the March rebalance due to the acquisitions of <a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">Ausnet Services (AST AU)</a> and <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a>. </li>
<li>There will also be the large <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group (BHP AU)</a> upweight and funding trade following unification, and possibly the <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> acquisition by <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a>. </li>
<li>Then there will be more changes to the ASX200 and ASX300 at the March rebalance. There could be a lot of new listings included in the ASX300.</li>
</ul>


There could be 2 changes to the ASX100 and ASX200 prior to the March rebalance due to the acquisitions of Ausnet Services (AST AU) and Sydney Airport (SYD AU). 
There will also be the large BHP Group (BHP AU) upweight and funding trade following unification, and possibly the Afterpay Touch (APT AU) acquisition by Square Inc (SQ US). 
Then there will be more changes to the ASX200 and ASX300 at the March rebalance. There could be a lot of new listings included in the ASX300.


ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

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>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 will talk about the IPO valuation.</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 will talk about the IPO valuation.


Net Protections Holdings IPO - Needs a Bit of Hope and Belief

<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 will talk about the positive and negative aspects of the deal</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 will talk about the positive and negative aspects of the deal


Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

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

<a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> has despatched the scheme booklet in relation to the scheme of arrangement from <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a>. Square will offer a fixed exchange ratio of 0.375 Square shares per Afterpay share. Based on Square's closing price on 5 November, the implied transaction price of A$120.14 per share is a 24.3% premium to Afterpay’s share price of A$96.66 per share on the last trading date (30 July) and a 2.2% premium to Afterpay’s last close share price of A$117.50 per share.  Unsurprisingly, the independent expert (IE) considers the offer to be fair and reasonable. The IE’s recommendation is based primarily on four valuation approaches – market approach, the income approach (DCF), listed market price and sell-side analyst price targets. We think that IE’s market approach and income approach could be improved. We think that listed market price and analyst price target valuation approaches are fair.  Square shareholders approved the issuance of new Square shares in connection with the scheme on 3 November. Also, the transaction has gained US Department of Justice approval (waiting period under the HSR Act expired) and ACCC has confirmed it will not review the transaction (not a condition precedent). The key condition is the scheme approved by the Afterpay shareholders. The scheme meeting is scheduled for 10 am on 6 December, the effective date is 10 December, the record date is 10 January 2022 and the implementation date is 18 January 2022. <div class="content-highlight">We continue to think that offer is attractive in comparison to Afterpay's historical EV/Sales multiples and average share prices and will be approved by Afterpay shareholders. At last close prices, the gross spread is 2.2% and the annualised spread to the implementation date is 11.8%. </div>

Afterpay Touch (APT AU) has despatched the scheme booklet in relation to the scheme of arrangement from Square Inc (SQ US). Square will offer a fixed exchange ratio of 0.375 Square shares per Afterpay share. Based on Square's closing price on 5 November, the implied transaction price of A$120.14 per share is a 24.3% premium to Afterpay’s share price of A$96.66 per share on the last trading date (30 July) and a 2.2% premium to Afterpay’s last close share price of A$117.50 per share.  Unsurprisingly, the independent expert (IE) considers the offer to be fair and reasonable. The IE’s recommendation is based primarily on four valuation approaches – market approach, the income approach (DCF), listed market price and sell-side analyst price targets. We think that IE’s market approach and income approach could be improved. We think that listed market price and analyst price target valuation approaches are fair.  Square shareholders approved the issuance of new Square shares in connection with the scheme on 3 November. Also, the transaction has gained US Department of Justice approval (waiting period under the HSR Act expired) and ACCC has confirmed it will not review the transaction (not a condition precedent). The key condition is the scheme approved by the Afterpay shareholders. The scheme meeting is scheduled for 10 am on 6 December, the effective date is 10 December, the record date is 10 January 2022 and the implementation date is 18 January 2022. We continue to think that offer is attractive in comparison to Afterpay's historical EV/Sales multiples and average share prices and will be approved by Afterpay shareholders. At last close prices, the gross spread is 2.2% and the annualised spread to the implementation date is 11.8%. 

Afterpay Scheme Meeting on 6 Dec, IE Opinion

United States

Sezzle Inc. is a technology driven payments company based in the United States. Sezzle provides a platform that facilitates payments between shoppers and retailers, via a short-term, interest-free instalment payment plan.

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Sezzle Inc (SZL AU)

Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, HSCI, S&P/ASX, SET50, LIC, SBI Sumishin, Crown

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

There will be many changes to the ASX100/200/300 indices from now to March due to M&A activity & price moves. Plus a large funding trade following...

Brian Freitas

Net Protections Holdings IPO - Needs a Bit of Hope and Belief

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

Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

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

Afterpay Scheme Meeting on 6 Dec, IE Opinion

The scheme meeting is scheduled for 10 am on 6 December and the implementation date is 18 January 2022. The scheme will be likely approved. Gross...

Arun George

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, HSCI, S&P/ASX, SET50, LIC, SBI Sumishin, Crown

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

There will be many changes to the ASX100/200/300 indices from now to March due to M&A activity & price moves. Plus a large funding trade following...

Brian Freitas

Net Protections Holdings IPO - Needs a Bit of Hope and Belief

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

Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

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

Afterpay Scheme Meeting on 6 Dec, IE Opinion

The scheme meeting is scheduled for 10 am on 6 December and the implementation date is 18 January 2022. The scheme will be likely approved. Gross...

Arun George

ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March