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

Synergy Grid & Development Philippines / Equity Capital Markets

Synergy Grid & Development Philippines (SGP PM)

<p>Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. </p><p>The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.</p><p>NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.</p><p>In this note, we will talk about the deal background and the overall positive aspects of the deal.</p>

Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.In this note, we will talk about the deal background and the overall positive aspects of the deal.

Synergy Grid & Development Re-IPO - Deal Background and Positives

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Philippine Stock Exchange / Equity Bottom-Up

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<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> reported a strong set of 1H2021 numbers with net income up by +63.1% YoY on the back of a +30.9% increase in operating revenues.</p>
<p>The bottom-line performance was driven by the increase in operating revenues together with positive investment income. </p>
<p>The company saw particularly strong growth in listing fees due to a number of large size IPOs, whilst transaction fees and SCCP clearing fees increased due to higher market volumes, driven by particularly strong retail activity.</p>
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<p>The real growth driver for revenues and profits in 1H2021 came from a significant increase in capital raisings.</p>
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<p>Even after the flush of offerings in 1H2021, the listing pipeline is robust for 2H2021 and going into 2022, with a number of already approved issues plus upcoming planned listings as well as a number of planned REITs in the pipeline, which have already been featured in the news.</p>
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<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> has also laid out a number of key initiatives set to launch this year which will provide a potential boost to activity on the exchange including new rules on short selling.</p>
<p><a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> will launch a new marketing campaign to encourage more companies to list and especially SMEs. </p>
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<p>This latest set of results underline the positive story with <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> which continues to look promising with a strong IPO and placement pipeline for 2H2021 and going into 2022. </p>
<p>If we factor in the company's cash per share into the <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> valuation then the company is trading on an ex-cash FY21E PER of 16.0x and FY22E PER of 14.5x making it look significantly more attractive versus its peers together with stronger growth prospects. </p>
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The Philippine Stock Exchange (PSE PM) reported a strong set of 1H2021 numbers with net income up by +63.1% YoY on the back of a +30.9% increase in operating revenues.
The bottom-line performance was driven by the increase in operating revenues together with positive investment income. 
The company saw particularly strong growth in listing fees due to a number of large size IPOs, whilst transaction fees and SCCP clearing fees increased due to higher market volumes, driven by particularly strong retail activity.





The real growth driver for revenues and profits in 1H2021 came from a significant increase in capital raisings.

Even after the flush of offerings in 1H2021, the listing pipeline is robust for 2H2021 and going into 2022, with a number of already approved issues plus upcoming planned listings as well as a number of planned REITs in the pipeline, which have already been featured in the news.



The Philippine Stock Exchange (PSE PM) has also laid out a number of key initiatives set to launch this year which will provide a potential boost to activity on the exchange including new rules on short selling.
Philippine Stock Exchange (PSE PM) will launch a new marketing campaign to encourage more companies to list and especially SMEs. 





This latest set of results underline the positive story with Philippine Stock Exchange (PSE PM) which continues to look promising with a strong IPO and placement pipeline for 2H2021 and going into 2022. 
If we factor in the company's cash per share into the Philippine Stock Exchange (PSE PM) valuation then the company is trading on an ex-cash FY21E PER of 16.0x and FY22E PER of 14.5x making it look significantly more attractive versus its peers together with stronger growth prospects. 


Philippine Stock Exchange (PSE PM) - Thriving on Retailers and IPOs

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p><a href="https://www.smartkarma.com/entities/sm-investments-corp" target="_blank" data-smartkarma-citation="entities:20015:1" rel="noopener">SM Investments (SM PM)</a> ("SMIC") currently holds a 30.49% stake in <a href="https://www.smartkarma.com/entities/2go-group-inc" target="_blank" data-smartkarma-citation="entities:22935:1" rel="noopener">2GO Group Inc (2GO PM)</a>.</p>
<p>On the <a href="https://edge.pse.com.ph/openDiscViewer.do?edge_no=021686f4a97bb8fd5d542af6f1e997b9" target="_blank" rel="noopener">18 March</a>, SMI entered into an SPA with KGLI-NM Holdings to acquire its 22.36% stake in 2GO. The transaction will result in SMIC’s shareholding in 2GO increasing to 52.85%. As the resultant ownership will be &gt;50%, this triggers a Tender Offer for the remaining 47.15% of shares out not held by SMIC.</p>
<p>The Tender Offer Price is ₱8.50/share or ₱8.447215 net of selling charges. The Tender Offer is now open and will close on the 21 April (unless extended with prior approval of the SEC).</p>
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<p>2GO is illiquid, and currently trading through terms. If that is of no interest, look away now. It will save you time.</p>
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<p>More below the fold.</p>
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SM Investments (SM PM) ("SMIC") currently holds a 30.49% stake in 2GO Group Inc (2GO PM).
On the 18 March, SMI entered into an SPA with KGLI-NM Holdings to acquire its 22.36% stake in 2GO. The transaction will result in SMIC’s shareholding in 2GO increasing to 52.85%. As the resultant ownership will be &gt;50%, this triggers a Tender Offer for the remaining 47.15% of shares out not held by SMIC.
The Tender Offer Price is ₱8.50/share or ₱8.447215 net of selling charges. The Tender Offer is now open and will close on the 21 April (unless extended with prior approval of the SEC).

2GO is illiquid, and currently trading through terms. If that is of no interest, look away now. It will save you time.



More below the fold.


APAC IPOs & Placements

Zhen Zhou, Toh

<p><a href="https://www.smartkarma.com/entities/allhome-corp" target="_blank" data-smartkarma-citation="entities:28227:1" rel="noopener">AllHome (AHM PM)</a> is looking to raise about US$400m in its upcoming IPO in the Philippines. We shared our thoughts on the company in:</p>
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<a href="https://www.smartkarma.com/insights/allhome-ipo-early-thoughts-about-to-grow-even-faster" target="_blank" data-smartkarma-citation="insights:31282" rel="noopener">AllHome IPO Early Thoughts - About to Grow Even Faster</a> </li>
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<p>In this insight, we will look into the home improvement industry dynamics, competitive landscape and compare AllHome to competitors.</p>

AllHome (AHM PM) is looking to raise about US$400m in its upcoming IPO in the Philippines. We shared our thoughts on the company in:


AllHome IPO Early Thoughts - About to Grow Even Faster 

In this insight, we will look into the home improvement industry dynamics, competitive landscape and compare AllHome to competitors.

AllHome IPO Peer Comparison - Playing Catch Up

<p>Khazanah is looking to sell about 83m shares of <a href="https://www.smartkarma.com/entities/bdo-unibank-inc" target="_blank" data-smartkarma-citation="entities:329:1" rel="noopener">BDO Unibank Inc (BDO PM)</a> worth about US$222m. <a href="https://www.smartkarma.com/entities/sm-investments-corp" target="_blank" data-smartkarma-citation="entities:20015:1" rel="noopener">Sm Investments (SM PM)</a> will be buying about US$100m worth of shares from the deal. This is a clean-up trade for Khazanah.</p><p>The deal scores well on our framework owing to BDO's strong track record and good price and earnings momentum. The lock-up expiry date on Khazanah from the February 2019 selldown was 16th May 2019. Hence, we think that this final clean-up selldown by Khazanah of about 83m shares is likely to be expected. Furthermore, SM Investments has announced that it will purchase US$100m worth of shares in the placement, reducing the ADV from 35 days to about 16 days, will likely help with bolstering sentiment.</p>

Khazanah is looking to sell about 83m shares of BDO Unibank Inc (BDO PM) worth about US$222m. Sm Investments (SM PM) will be buying about US$100m worth of shares from the deal. This is a clean-up trade for Khazanah.The deal scores well on our framework owing to BDO's strong track record and good price and earnings momentum. The lock-up expiry date on Khazanah from the February 2019 selldown was 16th May 2019. Hence, we think that this final clean-up selldown by Khazanah of about 83m shares is likely to be expected. Furthermore, SM Investments has announced that it will purchase US$100m worth of shares in the placement, reducing the ADV from 35 days to about 16 days, will likely help with bolstering sentiment.

BDO Unibank Placement - It Has Come Full Circle

Philippines

SM Investments Corporation is a Filipino conglomerate with diverse interests across retail, banking, property development, and portfolio investments. It is a dominant player in shopping mall development and management, retail, and real estate, and also provides a full range of banking services through its subsidiaries. The company is headquartered in Pasay City, Philippines, and was founded in 1958.

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SM Investments (SM PM)

Synergy Grid & Development Re-IPO - Deal Background and Positives

Synergy Grid & Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. SGP indirectly controls over 60% of National...

Sumeet Singh

Philippine Stock Exchange (PSE PM) - Thriving on Retailers and IPOs

The Philippine Stock Exchange (PSE PM) continues to look undervalued relative to other listed regional exchanges with a strong IPO and placement...

Angus Mackintosh

2GO Group (2GO PH): SMIC's MGO

Currently trading 5% through terms - adjusted for selling fees. Nothing to be done here otherwise, unless you have a strong opinion on the back...

David Blennerhassett

AllHome IPO Peer Comparison - Playing Catch Up

AllHome (AHM PM) is looking to raise about US$400m in its upcoming IPO in the Philippines. We shared our thoughts on the company in: AllHome IPO...

Zhen Zhou, Toh

BDO Unibank Placement - It Has Come Full Circle

Khazanah is looking to sell about 83m shares of BDO Unibank Inc (BDO PM) worth about US$222m. Sm Investments (SM PM) will be buying about US$100m...

Zhen Zhou, Toh

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