In today’s briefing:
- SIA Placement – Selldown Isn’t Particularly Well Flagged. Overhang Is Too Large to Ignore
- Tryt IPO – Peer Comp – One of the Widest Margins Historically, but Has Lagged over the Track Record
- AKR Corporindo (AKRA IJ) – Unseasonally Optimistic
- TRYT IPO: The Bear Case
- Redox IPO Trading – Peers Have Mostly Corrected over the past Month
SIA Placement – Selldown Isn’t Particularly Well Flagged. Overhang Is Too Large to Ignore
- Napier (Temasek) is looking to raise around US$300m via its secondary selldown in Singapore Airlines (SIA SP).
- The deal isn’t very well flagged given that the investor hadn’t earlier given any explicit guidance of a selldown.
- Post-Selldown, Temasek will still own over 50% of SIA’s shares outstanding, so the overhang will be a large one.
Tryt IPO – Peer Comp – One of the Widest Margins Historically, but Has Lagged over the Track Record
- Tryt Inc (9164 JP) is looking to raise about US$460m in its Japan IPO.
- Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
- We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.
AKR Corporindo (AKRA IJ) – Unseasonally Optimistic
- AKR Corporindo provided an unseasonally upbeat indication for 2Q2023 for its petroleum and chemical product distribution businesses, and for the strong demand pick up for its retail JV with BP.
- Indications suggest that the company is well on track to meet its FY2023 guidance for its distribution businesses, and is optimistic about the build-out of its retail filling stations.
- Its JIIPE industrial estate secured 17 hectares in 2Q2023 but its pipeline is now 300-350 hectares, underlining the increasing importance to AKR Corporindo (AKRA IJ).
TRYT IPO: The Bear Case
- Tryt Inc (9164 JP), a leading professional recruiting and temporary staffing service in Japan, seeks to raise US$450 million. Pricing is on 5 July, and book-building is 6-11 July.
- In TRYT IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on mid-tier revenue growth rates, margin pressure led by rising labour expenses, bottom-tier FCF margin and high leverage.
Redox IPO Trading – Peers Have Mostly Corrected over the past Month
- Redox (RDX AU), a chemical and ingredients distributor, raised around US$270m in its Australia IPO. The stock will begin to trade on 3rd July 2023.
- In 2022 it was ranked as the largest chemicals and ingredients distributor in Australia, as well as the 13th largest in the Asia Pacific region and the 35th largest worldwide
- We have looked at the company’s past performance in our previous note, in this note we will talk about the updates since then and the trading dynamics.
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