Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/genting-bhd" target="_blank" data-smartkarma-citation="entities:14210:1" rel="noopener">Genting Bhd (GENT MK)</a></strong> is attractive amid solid US and UK footfall numbers, easing border restrictions, and pent-up demand for international travel.</li>
<li>Preceding my comments on Genting - and <strong><a href="https://www.smartkarma.com/entities/sunac-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:240:1" rel="noopener">Sunac China Holdings (1918 HK)</a></strong> - are the weekly setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market cap - &gt;20%.</li>
</ul>



Genting Bhd (GENT MK) is attractive amid solid US and UK footfall numbers, easing border restrictions, and pent-up demand for international travel.
Preceding my comments on Genting - and Sunac China Holdings (1918 HK) - are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market cap - &gt;20%.


StubWorld: Betting On Genting's Recovery; Sunac China Trading "Rich"

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

Cisarua Mountain Dairy / Equity Capital Markets

<ul>
<li><strong>Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs. </strong></li>
<li>Hong Kong IPO pipeline looks strong with Weilong Delicious Global, CANbridge Pharmaceuticals,  Asymchem Laboratories, and China Tourism Group either close to approval or seeking approval with HKEX soon.</li>
<li>Indonesia ECM is looking busier than ever this year with the launch of Cisarua Mountain Dairy (Cimory) and PT Avia Avian IPO bookbuilds this week.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs. 
Hong Kong IPO pipeline looks strong with Weilong Delicious Global, CANbridge Pharmaceuticals,  Asymchem Laboratories, and China Tourism Group either close to approval or seeking approval with HKEX soon.
Indonesia ECM is looking busier than ever this year with the launch of Cisarua Mountain Dairy (Cimory) and PT Avia Avian IPO bookbuilds this week.


ECM Weekly (14th November 2021) - Cimory, Infervision, Daiwa House REIT, Weilong Delicious

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sunac-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:240:1" rel="noopener">Sunac China Holdings (1918 HK)</a> is looking to raise US$561m from its top-up placement to repay loans and for general corporate purposes.</li>
<li>On top of that, the company will raise another US$269m from a selldown of 138m shares in <a href="https://www.smartkarma.com/entities/sunac-services-holdings" target="_blank" data-smartkarma-citation="entities:29239:1" rel="noopener">Sunac Services Holdings (1516 HK)</a>. </li>
<li>This marks the start of Sunac China's deleveraging effort but it also means there will be more to come for Sunac Services.</li>
</ul>



Sunac China Holdings (1918 HK) is looking to raise US$561m from its top-up placement to repay loans and for general corporate purposes.
On top of that, the company will raise another US$269m from a selldown of 138m shares in Sunac Services Holdings (1516 HK). 
This marks the start of Sunac China's deleveraging effort but it also means there will be more to come for Sunac Services.


Sunac Blocks - Just the Start for Sunac China and It Won't Be the Last for Sunac Services

<p>Late last month, <a href="https://www.smartkarma.com/entities/modern-land-china-co-ltd" target="_blank" data-smartkarma-citation="entities:16899:1" rel="noopener">Modern Land China (1107 HK)</a> became the latest Chinese developer to miss a payment on a dollar bond. In an HKEx filing on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1026/2021102600163.pdf" target="_blank" rel="noopener">26 October</a>, Modern Land said that principal and interest payments on a US$250mn bond were “not met” by the 25 October deadline.</p>
<p>Modern Land had previously sought a three-month extension to the maturity on the bond, but later withdrew the proposal.  The company blamed the missed payment on “<em>unexpected liquidity issues arising from the adverse impact of a number of factors including the macroeconomic environment, the real estate industry environment and the Covid-19 pandemic</em>”.</p>
<p>Shares in Modern Land have been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1021/2021102100209.pdf" target="_blank" rel="noopener">suspended</a> since the 21 October. </p>
<h3>The New News</h3>
<p><a href="https://www.smartkarma.com/entities/sunac-services-holdings" target="_blank" data-smartkarma-citation="entities:29239:1" rel="noopener">Sunac Services Holdings (1516 HK)</a> intends to acquire a 32.22% stake in <a href="https://www.smartkarma.com/entities/first-service-holding-limited" target="_blank" data-smartkarma-citation="entities:34884:1" rel="noopener">First Service Holding (2107 HK)</a>, the completion of which will trigger an unconditional mandatory cash offer.</p>
<p>The Offer Price is HK$2.6167/share,  a 91% premium to the closing price of First Service prior to the trading halt on October 8.</p>
<p>Zhang Lei is currently the major shareholder of First Service with 51.39%. He is also the major shareholder and chairman of Modern Land with 65.38%. His holding in First Service will decline to 30% upon the completion of the agreements with Sunac Services. Proceeds from the sale of HK$843mn, which may be subject to revision, are expected to be used to repay Modern Land's debt.</p>
<p>This appears a knock-out Offer for First Service. It is Sunac Services' intention to delist the company, should 90% of disinterested shareholders tender.</p>
<p>Timing is the key issue. </p>
<p>More below the fold.</p>

Late last month, Modern Land China (1107 HK) became the latest Chinese developer to miss a payment on a dollar bond. In an HKEx filing on the 26 October, Modern Land said that principal and interest payments on a US$250mn bond were “not met” by the 25 October deadline.
Modern Land had previously sought a three-month extension to the maturity on the bond, but later withdrew the proposal.  The company blamed the missed payment on “unexpected liquidity issues arising from the adverse impact of a number of factors including the macroeconomic environment, the real estate industry environment and the Covid-19 pandemic”.
Shares in Modern Land have been suspended since the 21 October. 
The New News
Sunac Services Holdings (1516 HK) intends to acquire a 32.22% stake in First Service Holding (2107 HK), the completion of which will trigger an unconditional mandatory cash offer.
The Offer Price is HK$2.6167/share,  a 91% premium to the closing price of First Service prior to the trading halt on October 8.
Zhang Lei is currently the major shareholder of First Service with 51.39%. He is also the major shareholder and chairman of Modern Land with 65.38%. His holding in First Service will decline to 30% upon the completion of the agreements with Sunac Services. Proceeds from the sale of HK$843mn, which may be subject to revision, are expected to be used to repay Modern Land's debt.
This appears a knock-out Offer for First Service. It is Sunac Services' intention to delist the company, should 90% of disinterested shareholders tender.
Timing is the key issue. 
More below the fold.

Sunac Services' Offer For First Service (2107 HK) May Support Modern Land

APAC IPOs & Placements

Zhen Zhou, Toh

Evergrande Property Services Group / Equity Capital Markets

Evergrande Property Services Group (6666 HK)

<div>
<p>Undisclosed institutional sellers (Vendor Group) are looking to sell about US$340m (with US$280m upsize option) worth of shares in <a href="https://www.smartkarma.com/entities/evergrande-property-services" target="_blank" data-smartkarma-citation="entities:30921:1" rel="noopener">Evergrande Property Services (6666 HK)</a> (EGS).</p>
<p>In this note, we look at deal dynamics and share our thoughts on the selldown.</p>
<p>EGS was listed on the Hong Kong Exchange on 2nd December, 2020, and its IPO lock-up will expire tomorrow on 2nd June, 2021. After <a href="https://www.smartkarma.com/entities/china-evergrande-group" target="_blank" data-smartkarma-citation="entities:479:1" rel="noopener">Evergrande Real Estate Group (3333 HK)</a> (CEG) sold a portion of its stake in Evergrande New Energy Vehicle (ENEV), we discussed the possibility that EGS could be the next listco to be sold by CEG.</p>
<ul><li>
<a href="https://www.smartkarma.com/insights/evergrande-property-services-lock-up-expiry-trade-the-next-one-to-be-sold-by-evergrande" target="_blank" data-smartkarma-citation="insights:51392" rel="noopener">Evergrande Property Services Lock-Up Expiry Trade - The Next One to Be Sold by Evergrande</a> </li></ul>
</div><div><p>Prior to that, we covered the IPO in:</p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/evergrande-services-pre-ipo-bad-parenting" target="_blank" data-smartkarma-citation="insights:45461" rel="noopener">Evergrande Services (恒大物业) Pre-IPO - Bad Parenting</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/evergrande-services-ipo-overhang-issues" target="_blank" data-smartkarma-citation="insights:45607" rel="noopener">Evergrande Services (恒大物业) IPO - Overhang Issues</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/evergrande-services-ipo-trading-slightly-weaker-demand" target="_blank" data-smartkarma-citation="insights:45917" rel="noopener">Evergrande Services (恒大物业) IPO Trading - Slightly Weaker Demand</a> </li>
</ul></div>


Undisclosed institutional sellers (Vendor Group) are looking to sell about US$340m (with US$280m upsize option) worth of shares in Evergrande Property Services (6666 HK) (EGS).
In this note, we look at deal dynamics and share our thoughts on the selldown.
EGS was listed on the Hong Kong Exchange on 2nd December, 2020, and its IPO lock-up will expire tomorrow on 2nd June, 2021. After Evergrande Real Estate Group (3333 HK) (CEG) sold a portion of its stake in Evergrande New Energy Vehicle (ENEV), we discussed the possibility that EGS could be the next listco to be sold by CEG.

Evergrande Property Services Lock-Up Expiry Trade - The Next One to Be Sold by Evergrande 
Prior to that, we covered the IPO in:

Evergrande Services (恒大物业) Pre-IPO - Bad Parenting 

Evergrande Services (恒大物业) IPO - Overhang Issues 

Evergrande Services (恒大物业) IPO Trading - Slightly Weaker Demand 


Evergrande Property Services (恒大物业) Placement - An Expected Selldown but Not from the One Expected

China

Sunac Services Holdings Ltd. is an investment holding company primarily engaged in providing property management, operational, and community living services. It offers a diverse range of services for residential, commercial, and urban properties, including security, cleaning, and facility maintenance. The company was founded in 2004 and is headquartered in Beijing, China.

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Sunac Services (1516 HK)

StubWorld: Betting On Genting's Recovery; Sunac China Trading "Rich"

Genting Bhd (GENT MK) is attractive amid solid US and UK numbers, easing border restrictions, and pent-up demand for international travel.

David Blennerhassett

ECM Weekly (14th November 2021) - Cimory, Infervision, Daiwa House REIT, Weilong Delicious

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Sunac Blocks - Just the Start for Sunac China and It Won't Be the Last for Sunac Services

Sunac China Holdings (1918 HK) is looking to raise US$561m from its top-up placement to repay loans and for general corporate purposes. It will...

Sumeet Singh

Sunac Services' Offer For First Service (2107 HK) May Support Modern Land

At HK$2.14/share, First Service is currently trading at a gross/annualised spread of 22.2%/128.1%, assuming late January completion. Or 39.6%...

David Blennerhassett

Evergrande Property Services (恒大物业) Placement - An Expected Selldown but Not from the One Expected

Undisclosed institutional sellers (Vendor Group) are looking to sell about US$340m (with US$280m upsize option) worth of shares in Evergrande...

Zhen Zhou, Toh

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