In today’s briefing:
- Newmont’s Indicative Offer for Newcrest Mining (NCM AU)
- Pertamina Geothermal IPO: Valuation Insights
- Introducing ARIRANG K-Defense, Sector ETF Currently in the Limelight in Korea
Newmont’s Indicative Offer for Newcrest Mining (NCM AU)
- Newmont Mining (NEM US) has made an indicative, non-binding and conditional proposal to acquire Newcrest Mining (NCM AU). The exchange ratio is 0.38 Newmont shares for each Newcrest share.
- At Newmont Mining (NEM US)‘s last close, this values Newcrest Mining (NCM AU) at A$27.4/share and at an equity value of A$17.3bn, a 22% premium to the last close.
- Newmont Mining (NEM US) intends to list CDIs on the ASX following the acquisition and that will have implications for changes in the S&P/ASX family of indices.
Pertamina Geothermal IPO: Valuation Insights
- Pertamina Geothermal (0125738D IJ)/PGE, a subsidiary of PT Pertamina (Persero) (PERT IJ), is seeking to raise up to US$600 million at a narrowed price range of IDR875-880 per share.
- We previously discussed the IPO in Pertamina Geothermal IPO: The Investment Case.
- PGE is attractively valued at the IPO price range. We would participate. Books will be closed on 10 February and the shares will start trading on 24 February.
Introducing ARIRANG K-Defense, Sector ETF Currently in the Limelight in Korea
- ARIRANG K-Defense Industry Fn ETF (449450 KS) shows the fastest AUM/ADV growth among recently listed sector ETFs. It is virtually the only one enjoying the influx of local retail investors.
- The increasing trend of ETF AUM, coupled with the growing interest of local retail investors in the defense sector, will likely lead to flow improvement in each constituent.
- The passive impact of some stocks in the upcoming rebalancing is expected to expand to 0.4-0.5x ADTV. Notable names in this regard are Hanwha Corporation and SNT Motiv.
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