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

<div><p>Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.</p></div><div><p>It primarily has two main businesses: Asia-Pacific Branded Food and Beverage Business, which sells instant noodles, biscuits and other products, and meat alternative business which includes Quorn and Cauldron meat alternatives brands.</p></div><div>
<p>MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. </p>
<p>In our previous note, <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-positives-high-market-share" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Positives - High Market Share</a>, we spoke about the positive aspects of the deal. In this note, we will talk about the not so pleasant aspects. </p>
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Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.It primarily has two main businesses: Asia-Pacific Branded Food and Beverage Business, which sells instant noodles, biscuits and other products, and meat alternative business which includes Quorn and Cauldron meat alternatives brands.
MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. 
In our previous note, Monde Nissin Pre-IPO - The Positives - High Market Share, we spoke about the positive aspects of the deal. In this note, we will talk about the not so pleasant aspects. 


Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA

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<p>DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), raised around US$275m in its Philippines listing.</p>
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<p>DDMPR will be the second REIT listing in the Philippines, after <a href="https://www.smartkarma.com/entities/areit-ayalaland-reit" target="_blank" data-smartkarma-citation="entities:28856:1" rel="noopener">Areit (AyalaLand REIT) (AREIT PM)</a>. </p>
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<p>We looked at the background of the REIT in our earlier notes, <a href="https://www.smartkarma.com/insights/ddpm-reit-pre-ipo-brand-new-assets-but-not-with-the-best-of-outlooks" target="_blank" rel="noopener">DDMP REIT Pre-IPO - Brand new assets but not with the best of outlooks</a>,  <a href="https://www.smartkarma.com/insights/ddmp-reit-pre-ipo-peer-review" target="_blank" rel="noopener">DDMP REIT Pre-IPO - Peer Review</a> and <a href="https://www.smartkarma.com/insights/ddmp-reit-ipo-would-go-in-towards-the-low-end" target="_blank" rel="noopener">DDMP REIT IPO - Would Go in Towards the Low-End</a>. </p>
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<p>In this note, we’ll talk about the trading dynamics.</p>
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DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), raised around US$275m in its Philippines listing.


DDMPR will be the second REIT listing in the Philippines, after Areit (AyalaLand REIT) (AREIT PM). 


We looked at the background of the REIT in our earlier notes, DDMP REIT Pre-IPO - Brand new assets but not with the best of outlooks,  DDMP REIT Pre-IPO - Peer Review and DDMP REIT IPO - Would Go in Towards the Low-End. 


In this note, we’ll talk about the trading dynamics.


DDMP REIT IPO Trading - Priced at the Top of the Range, Upside Remains Unclear

<p>DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.</p><p>DDMPR will be the second REIT listing in the Philippines. DDMPR’s investment strategy is to invest in income-generating real estate located in either Metro Manila or key provinces in the Philippines. It aims to acquire primarily Grade A commercial properties, but may acquire other related real estate as well.</p><p>It will have an initial portfolio of three commercial buildings, with six office towers, located in DD Meridian Park. It also owns the land for two other under construction assets, which have been leased to DDP. Together the assets will have a gross leasable area (GLA) of 172,252sqm. As of Sep 2020, the portfolio had an occupancy of 99.5% and weighted average lease expiry for the office leases of 4.2years.</p><p>Its assets are relatively new, with all having been completed over 2017-19. The assets have long term leases and step-up rental escalation, which should provide rental stability. However, the assets aren’t located in prime CBD and the particular area appears to have a fair amount of incoming office supply over the next few years. </p><p>We looked at the background of the REIT in our earlier note, <a href="https://www.smartkarma.com/insights/ddpm-reit-pre-ipo-brand-new-assets-but-not-with-the-best-of-outlooks" target="_blank" rel="noopener">DDMP REIT Pre-IPO - Brand new assets but not with the best of outlooks</a>. In this note, we’ll undertake a peer comparison with recently listed AREIT.</p>

DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.DDMPR will be the second REIT listing in the Philippines. DDMPR’s investment strategy is to invest in income-generating real estate located in either Metro Manila or key provinces in the Philippines. It aims to acquire primarily Grade A commercial properties, but may acquire other related real estate as well.It will have an initial portfolio of three commercial buildings, with six office towers, located in DD Meridian Park. It also owns the land for two other under construction assets, which have been leased to DDP. Together the assets will have a gross leasable area (GLA) of 172,252sqm. As of Sep 2020, the portfolio had an occupancy of 99.5% and weighted average lease expiry for the office leases of 4.2years.Its assets are relatively new, with all having been completed over 2017-19. The assets have long term leases and step-up rental escalation, which should provide rental stability. However, the assets aren’t located in prime CBD and the particular area appears to have a fair amount of incoming office supply over the next few years. We looked at the background of the REIT in our earlier note, DDMP REIT Pre-IPO - Brand new assets but not with the best of outlooks. In this note, we’ll undertake a peer comparison with recently listed AREIT.

<p>DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.</p>
<p>DDMPR will be the second REIT listing in the Philippines. DDMPR’s investment strategy is to invest in income-generating real estate located in either Metro Manila or key provinces in the Philippines. It aims to acquire primarily Grade A commercial properties, but may acquire other related real estate as well.</p>
<p>It will have an initial portfolio of three commercial buildings, with six office towers, located in DD Meridian Park. It also owns the land for two other under construction assets, which have been leased to DDP. Together the assets will have a gross leasable area (GLA) of 172,252sqm. As of Sep 2020, the portfolio had an occupancy of 99.5% and weighted average lease expiry for the office leases of 4.2years.</p>
<p>Its assets are relatively new, with all having been completed over 2017-19. The assets have long term leases and step-up rental escalation, which should provide rental stability. </p>
<p>However, the assets aren’t located in prime CBD and the particular area appears to have a fair amount of incoming office supply over the next few years.</p>

DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.
DDMPR will be the second REIT listing in the Philippines. DDMPR’s investment strategy is to invest in income-generating real estate located in either Metro Manila or key provinces in the Philippines. It aims to acquire primarily Grade A commercial properties, but may acquire other related real estate as well.
It will have an initial portfolio of three commercial buildings, with six office towers, located in DD Meridian Park. It also owns the land for two other under construction assets, which have been leased to DDP. Together the assets will have a gross leasable area (GLA) of 172,252sqm. As of Sep 2020, the portfolio had an occupancy of 99.5% and weighted average lease expiry for the office leases of 4.2years.
Its assets are relatively new, with all having been completed over 2017-19. The assets have long term leases and step-up rental escalation, which should provide rental stability. 
However, the assets aren’t located in prime CBD and the particular area appears to have a fair amount of incoming office supply over the next few years.

DDMP REIT Pre-IPO - Brand New Assets but Not with the Best of Outlooks

Converge ICT Solutions Inc / Equity Capital Markets

<p>Converge ICT aims to raise around US$500+m in its Philippines listing.</p><p>Converge ICT (CICT) is the largest high-speed fixed broadband operator in the Philippines, by high-speed residential fixed broadband subscriptions. It has a 54% market share as of Mar 2020, according to MPA. It also claims to be the fastest growing fixed broadband operator in both the residential and enterprise market.</p><p>CICT owns and operates an end-to-end fiber network in the Philippines, with over 30,000 km of fiber as of Mar 2020. Its network covers 200 cities and municipalities across Luzon. As of Mar 2020, it reached approximately 4.1m homes.</p><p>CICT’s revenue has grown at 69% CAGR over FY16-19, with growth being led by its residential business whose revenue has increased at 95% CAGR over the same time frame. Gross profit grew at 56% CAGR, EBITDA at 91% CAGR and Net profit at 60% CAGR. In other words, most of the revenue growth has flowed down to the bottom line. </p><p>I have covered the company background and undertaken a peer comparison in my earlier reports, links to which are below. In this note, I’ll talk about earnings forecast and valuations.</p><p>Links to my previous notes:</p><ul>
<li dir="ltr"><p><a href="https://www.smartkarma.com/insights/converge-ict-pre-ipo-fast-growth-low-penetration-covid-resistant" target="_blank" rel="noopener">Converge ICT Pre-IPO - Fast growth, low penetration, COVID resistant</a></p></li>
<li dir="ltr"><p><a href="https://www.smartkarma.com/compose/insight/43808/Converge%20ICT%20Pre-IPO%20-%20Peer%20Comparison%20-%20Not%20a%20Clear%20Cut%20Winner" target="_blank" rel="noopener">Converge ICT Pre-IPO - Peer comparison - Not a clear cut winner</a></p></li>
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Converge ICT aims to raise around US$500+m in its Philippines listing.Converge ICT (CICT) is the largest high-speed fixed broadband operator in the Philippines, by high-speed residential fixed broadband subscriptions. It has a 54% market share as of Mar 2020, according to MPA. It also claims to be the fastest growing fixed broadband operator in both the residential and enterprise market.CICT owns and operates an end-to-end fiber network in the Philippines, with over 30,000 km of fiber as of Mar 2020. Its network covers 200 cities and municipalities across Luzon. As of Mar 2020, it reached approximately 4.1m homes.CICT’s revenue has grown at 69% CAGR over FY16-19, with growth being led by its residential business whose revenue has increased at 95% CAGR over the same time frame. Gross profit grew at 56% CAGR, EBITDA at 91% CAGR and Net profit at 60% CAGR. In other words, most of the revenue growth has flowed down to the bottom line. I have covered the company background and undertaken a peer comparison in my earlier reports, links to which are below. In this note, I’ll talk about earnings forecast and valuations.Links to my previous notes:
Converge ICT Pre-IPO - Fast growth, low penetration, COVID resistant
Converge ICT Pre-IPO - Peer comparison - Not a clear cut winner


Converge ICT Pre-IPO - Thoughts on Valuation

Philippines

SM Prime Holdings Inc., through its subsidiaries, is engaged in residential property, shopping malls, offices, hotels and convention centers development.

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Sm Prime Holdings (SMPH PM)

Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA

Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO. In this note, we will talk about...

Sumeet Singh

DDMP REIT IPO Trading - Priced at the Top of the Range, Upside Remains Unclear

DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), raised around US$275m in its Philippines listing. In this note, we’ll talk...

Sumeet Singh

DDMP REIT Pre-IPO - Peer Review

DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing. DDMPR will be the...

Sumeet Singh

DDMP REIT Pre-IPO - Brand New Assets but Not with the Best of Outlooks

DDMP REIT (DDMPR), a subsidiary of DoubleDragon Properties Corp (DDP), aims to raise up to US$300 in its Philippines listing.

Sumeet Singh

Converge ICT Pre-IPO - Thoughts on Valuation

Converge ICT aims to raise around US$500m in its Philippines listing. Converge ICT (CICT) is the largest high-speed fixed broadband operator in...

Sumeet Singh

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