In today’s briefing:
- [Quiddity Index Apr25] S&P500/600 Jun25 Rebal: Lots of Intraview Changes Possible
- James Hardie (JHX AU)/Azek (AZEK US) Merger: Risky, Expensive, And Poor Governance
- The Beat Ideas: Jindal Steel & Power, A 31000Cr Mega Capex Plan
- Jiaxin International Resources Investment Limited Pre-IPO Tearsheet
- RIO: Highlights from Our Site Visit to the Fenix Gold Project
- Glencore: Initiation of Coverage
- ARQ: Phase 1 GAC Ramping Up in 2025; Domestic Supply Chain Largely Immune from Tariff Impact
[Quiddity Index Apr25] S&P500/600 Jun25 Rebal: Lots of Intraview Changes Possible
- The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
- In this insight, we take a look at the upcoming constituent changes in the run up to the June 2025 index rebal event.
- We expect two regular changes in June 2025. BUT… there are multiple live spin-off and M&A events likely to trigger intra-review index changes. Three are likely!
James Hardie (JHX AU)/Azek (AZEK US) Merger: Risky, Expensive, And Poor Governance
- On the 24th March, building materials outfit James Hardie Industries Plc (JHX AU) announced a cash/scrip merger with decking manufacturer Azek (AZEK US).
- JHX is offering 1.034 new JHX shares plus US$26.45/share in cash for each Azek share, or an implied $56.88 all-in price (at the time), a punchy 37.4% premium to undisturbed.
- Apart from pushback on pricing for Azek, JHX shareholders have voiced opposition over the ASX granting a waiver, allowing the merger to proceed without a vote from JHX shareholders
The Beat Ideas: Jindal Steel & Power, A 31000Cr Mega Capex Plan
- The company is in the final stages of commissioning its INR 31,000 crore capex plan, accompanied by strong promoter buying in recent months
- The new capacity is expected to improve margins through deeper backward integration while also expanding its value-added product mix.
- With secured fuel, captive power, and value-added downstream capacity, it is poised to emerge as an infrastructure powerhouse. A steel price recovery would further amplify gains.
Jiaxin International Resources Investment Limited Pre-IPO Tearsheet
- Jiaxin International Resources Investment Limited (JIRI) is looking to raise about US$140m in its upcoming Hong Kong IPO. The deal will be run by CICC.
- It’s a pre-revenue tungsten mining company with the world’s largest open-pit tungsten mine in terms of mineral resources of tungsten trioxide (WO3) in 2024, as per Frost & Sullivan (F&S).
- Mining operation is conducted by a local subsidiary while JIRI is responsible for the processing operation and sales of the product to its customers.
RIO: Highlights from Our Site Visit to the Fenix Gold Project
- What you need to know: • We visited Rio2’s Fenix Gold Project near Copiapó, Chile on March 25th.
- • The visit was valuable in better understanding the layout of the project, progress on construction, the scale of the asset, and team behind it.
- • As a reminder, The Fenix Gold Project is the largest fully permitted and financed gold heap leach project in the Americas.
Glencore: Initiation of Coverage
- Glencore PLC’s 2024 financial results reflect a robust operational year, with the company reporting an adjusted EBITDA of $14.4 billion, indicating strong performance across its industrial and marketing segments.
- The industrial segment achieved an adjusted EBITDA of $10.6 billion, primarily driven by a healthy metals business despite challenging conditions in the metallurgical market.
- The recent integration of the EVR coal business contributed significantly, adding $1 billion to EBITDA in the latter half of the year.
ARQ: Phase 1 GAC Ramping Up in 2025; Domestic Supply Chain Largely Immune from Tariff Impact
- Following ARQ’s 4Q24 results, we are fine-tuning our estimates and introducing quarterly forecasts.
- ARQ is an environmental tech company producing activated carbon (AC) products that reduce or reverse environmental liabilities.
- Among many applications, AC products remove “forever chemicals” from public drinking water, remediate contaminated soil and ground water, and remove impurities from renewable natural gas.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
