Daily Brief Financials: FWD Group Holdings, Kalpataru Limited, Commonwealth Bank of Australia, NatWest Group , Platinum Asset Management, Ram Essential Services Prope, Real Estate Investors and more

• FWD Group Holdings (FWD HK) is looking to raise up to HK$3.99bn (US$508m) in its IPO, valuing the company at HK$48.82bn (US$6.22bn).
• Cornerstone investors will take up more than half the base offering and that will delay index inclusion to well into 2026.
• FWD Group Holdings (FWD HK) could be added to the HSCI Index and Southbound Stock Connect in December. That could bring some buying into the stock from mainland investors.

• FWD Group, a pan-Asian life insurer founded by Richard Li, aims to raise around US$442m in its HK IPO.
• FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
• We looked at the company’s past performance in our previous notes. In this note we talk about the IPO pricing.

• FWD Group Holdings (1828 HK) has launched its IPO to raise US$442 million at HK$38.00 per share. The shares will be listed on 7 July.
• I previously discussed the IPO in FWD Group IPO: The Investment Case. 
• The IPO price implies a discount to peers’ multiples. A discount is warranted as FWD is smaller than its peers. FWD is fairly valued at the IPO price. 

• Based on HKD 38 offer price per share, FWD has a market capitalization of USD 6.1 billion, assuming the overallotment option is not exercised.
• FWD’s P/FY’24 pro forma BV represents a significant discount to peers’ trading P/FY’24 BV since it has higher-than-peers intangible assets.
• P/EV might be a fairer approach as it excludes intangible assets. On this basis, FWD valuation almost has no discount.

• Kalpataru Limited (KTARU IN) is looking to raise about US$184m in its upcoming India IPO.
• Kalpataru (KL) is an integrated real estate developer involved in identification and acquisition of land, planning, designing, execution, sales, and marketing of its projects.
• In this note, we take a quick look at the company’s past performance and the IPO valuations.

• A global perspective on what happened overnight

• UK government owned Royal Bank of Scotland (RBS) for 17 years, impacting taxpayer finances
• RBS’s aggressive expansion and risky acquisitions led to vulnerabilities and exposure to toxic assets
• Government bailed out RBS with £45.5 billion, taking an 84% stake in the bank and preventing a collapse in 2008.

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• A global perspective on what happened overnight

• A global perspective on what happened overnight

• RLE, a London-listed REIT, is undergoing a three-year liquidation with £122m in commercial property and £7m cash.
• The portfolio’s occupancy is 82%, with a 6.92% net initial yield and a 9% reversionary yield.
• Risks include potential delays in asset sales, cash burn, and dependence on UK real estate market recovery.