In today’s briefing:
- Goodman Group (GMG AU) – Big Placement, Big Index Flow But…
- Goodman Group Placement – Large Deal, Doesn’t Seem Well Flagged, Not Particularly Exciting
- EquiLend Gets in on Korea’s Securities Lending Digital Shift: Trading Impact
- Indonesian Banks Screener; Bank Negara (BBNI IJ) Stands Out
Goodman Group (GMG AU) – Big Placement, Big Index Flow But…
- After a minor “disaster” in a secondary placement in December, this morning industrial/infrastructure (including data centres) REIT/etc Goodman Group (GMG AU) announced results and an A$4bn primary offering.
- The large offering comes at a 6.9% discount, and For a combination of reasons, there is a LOT of buying to do with index tracking over the next short while.
- But that too has complications. Some is immediate. Some a little delayed. A bunch may be supplied by short sellers. There is one easy trade. A few more complicated.
Goodman Group Placement – Large Deal, Doesn’t Seem Well Flagged, Not Particularly Exciting
- Goodman Group (GMG AU) is looking to raise around US$2.5bn to partly fund its data centre expansion plans.
- Goodman’s shares have performed exceptionally well over the past year, driven by its pivot towards data centers.
- In this note, we will talk about the placement and run the deal through our ECM framework.
EquiLend Gets in on Korea’s Securities Lending Digital Shift: Trading Impact
- The remaining third of Korea’s local securities lending market is moving to digital, potentially sparking a whole new trading landscape.
- Integrating EquiLend with local platforms boosts post-short-selling volume and shifts a large portion of manual trades into the digital space.
- This could spark new algo trading strategies, and with short selling resuming March 31, we’ll need to track how the flow evolves.
Indonesian Banks Screener; Bank Negara (BBNI IJ) Stands Out
- Negara’s attractive valuations, its low PEG ratio and efficiency ratio should drive the share re-rating; pre- and post-provision were flat QoQ, but profitability ratios edged higher over the medium term
- We like Mandiri for its attractive PE multiples and its robust credit quality, despite the 4Q24 returns blip; Mandiri has the second-best efficiency ratio and with further scope for gains
- Rakyat’s high structural cost of risk remains a drag on its post-provision returns, with eroded further in 4Q24; although declining, returns are high but Rakyat valuations are not yet compelling
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