APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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>MUFG Bank and Sumitomo Mitsui Banking Corp are looking to raise a combined US$210m from trimming their respective stakes in <a href="https://www.smartkarma.com/entities/sg-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:26070:1" rel="noopener">SG Holdings (9143 JP)</a>.</li>
<li>While representing 16 days of three month ADV, comprising only 10.1m shares, 1.57% of the firm's current market cap, the deal is a small one on an absolute basis.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>


MUFG Bank and Sumitomo Mitsui Banking Corp are looking to raise a combined US$210m from trimming their respective stakes in SG Holdings (9143 JP).
While representing 16 days of three month ADV, comprising only 10.1m shares, 1.57% of the firm's current market cap, the deal is a small one on an absolute basis.
In this note, we will talk about the placement and run the deal through our ECM framework.


SG Holdings Placement - Had Suffered from Weak Price Momentum, Buyback Should Support Share Price

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hitachi-transport-system-ltd" target="_blank" data-smartkarma-citation="entities:2395:1" rel="noopener">Hitachi Transport System (9086 JP)</a> has had a "long" wait to get its approvals, but EC and China are in, any remaining should be in shortly. </li>
<li>Yesterday, as a footnote on the SG Holdings offering document, there was a comment about SG Holdings selling shares. This was likely more good corporate governance hygiene than warning.</li>
<li>Shares are down this morning. I'd expect final approvals and launch quite soon. I would therefore look to buy the dip on flow - block or not.</li>
</ul>



Hitachi Transport System (9086 JP) has had a "long" wait to get its approvals, but EC and China are in, any remaining should be in shortly. 
Yesterday, as a footnote on the SG Holdings offering document, there was a comment about SG Holdings selling shares. This was likely more good corporate governance hygiene than warning.
Shares are down this morning. I'd expect final approvals and launch quite soon. I would therefore look to buy the dip on flow - block or not.


Hitachi Transport (9086 JP) - Tender Launch Likely Soon But Watch for Flow

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/delhivery-pvt-ltd" target="_blank" data-smartkarma-citation="entities:33471:1" rel="noopener">Delhivery (1058656D IN)</a> is the largest and fastest-growing 3PL express parcel delivery player in India. It will launch its Rs52.4 billion ($0.7 billion) IPO on 11 May.</li>
<li>In <a href="https://www.smartkarma.com/insights/delhivery-ipo-yet-to-convincingly-deliver" target="_blank" data-smartkarma-citation="insights:69440" rel="noopener">Delhivery IPO: Yet to Convincingly Deliver</a>, we noted that the negatives outweigh the positives.  </li>
<li>In this note, we look at the valuation metrics. We think that Delhivery is at best fairly valued at the IPO price range. </li>
</ul>



Delhivery (1058656D IN) is the largest and fastest-growing 3PL express parcel delivery player in India. It will launch its Rs52.4 billion ($0.7 billion) IPO on 11 May.
In Delhivery IPO: Yet to Convincingly Deliver, we noted that the negatives outweigh the positives.  
In this note, we look at the valuation metrics. We think that Delhivery is at best fairly valued at the IPO price range. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/hitachi-ltd" target="_blank" data-smartkarma-citation="entities:7797:1" rel="noopener">Hitachi Ltd (6501 JP)</a> results were salutary but noisy and the year to March 2023 is forecast similar (salutary but noisy). Service integration and growth to external customers is key.</li>
<li>Forecast growth in main businesses ex- to-be-sold listed subs is decent, but could be better. </li>
<li>A SEMI-Bigly buyback will help cushion any selling, but it has recently outrun Siemens on a like-for-like basis.</li>
</ul>



Hitachi Ltd (6501 JP) results were salutary but noisy and the year to March 2023 is forecast similar (salutary but noisy). Service integration and growth to external customers is key.
Forecast growth in main businesses ex- to-be-sold listed subs is decent, but could be better. 
A SEMI-Bigly buyback will help cushion any selling, but it has recently outrun Siemens on a like-for-like basis.


Hitachi Results, Special Gain on Asset Sale, and Semi-Bigly Buyback

<ul>
<li>KKR and <a href="https://www.smartkarma.com/entities/hitachi-ltd" target="_blank" data-smartkarma-citation="entities:7797:1" rel="noopener">Hitachi Ltd (6501 JP)</a> have a deal to get KKR to buy <a href="https://www.smartkarma.com/entities/hitachi-transport-system-ltd" target="_blank" data-smartkarma-citation="entities:2395:1" rel="noopener">Hitachi Transport System (9086 JP)</a> in a VLBO (<em>Very</em> Leveraged BuyOut). </li>
<li>As somewhat expected, it is a "split price deal" where Hitachi will accept a lower price for its 40% stake than minorities will receive in a Tender Offer. </li>
<li>This is a big win for Hitachi Transport shareholders, but the Tender Offer likely won't start until late September.</li>
</ul>


KKR and Hitachi Ltd (6501 JP) have a deal to get KKR to buy Hitachi Transport System (9086 JP) in a VLBO (Very Leveraged BuyOut). 
As somewhat expected, it is a "split price deal" where Hitachi will accept a lower price for its 40% stake than minorities will receive in a Tender Offer. 
This is a big win for Hitachi Transport shareholders, but the Tender Offer likely won't start until late September.


Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO

Japan

SG Holdings Co., Ltd. offers courier services. The Company provides goods delivery, cargo logistics, goods pickup, and other services. SG Holdings also operates real estate development, human resources management, and other businesses.

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SG Holdings (9143 JP)

Hitachi Transport (9086 JP) - Tender Launch Likely Soon But Watch for Flow

Hitachi Transport should be in final stages. The two tough approvals were done a month ago. The Russia sub should not be a factor (it could be sold...

Travis Lundy

Delhivery IPO: Valuation Insights

In this note, we look at the valuation metrics. We think that Delhivery is at best fairly valued at the IPO price range. Our recommendation is to...

Arun George

Hitachi Results, Special Gain on Asset Sale, and Semi-Bigly Buyback

Hitachi's results were salutary. There is going to be more noise in segments as they are realigned again. A buyback will add support to shares but...

Travis Lundy

Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO

Hitachi Transport (9086) shareholders score big with a Tender Offer takeout at JPY 8.913 for minority shareholders (while Hitachi sells 25+%...

Travis Lundy

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