Daily Brief Singapore: Grindr , UltraGreen.AI, Rubber Future SGX TSR20, Elite UK REIT and more

• Back on the 24th October, Ray Zage (director) and James Lu (chairman), collectively holding ~60% in Grindr (GRND US), proposed to take the company private in a US$3.5bn deal.
• The non-binding cash Offer of $18/share, is a 51% premium to undisturbed. A condition to a firm Offer may incorporate a majority of minority vote.
• While the Special Committee considers the proposal, James Lu has unusually opted to step down. Currently trading at a ~30% gross spread to indicative terms. 

• UltraGreen.AI Has filed for Singapore IPO. The IPO will consist of fresh issue as well as OFS from Renew Group Private Limited. Citigroup and DBS Bank are the joint bookrunners.
• The company intends to use the IPO proceeds for funding the capex and development of the products, and pursuing strategic investments and acquisitions to support expansion plans in new geographies.
• Ultragreen’s strong competitive moat, track record of revenue growth and margin expansion, and significant cash generation position it for continued success and leadership in the fluorescence-guided surgery-based imaging market.

Highlights

• Choppy and rangebound price movement expected in November 

• Narrowing SIR 20 vs INE spread could encourage substitution

• September import and export trend diverged

• Downstream restocking was selective rather than programmatic, leaving spot premiums capped

• Elite UK REIT offers a unique, counter-cyclical investment proposition with a portfolio of 148 properties primarily leased to the UK Government, providing stable, sovereign-backed cash flows.
• The REIT’s primary risk is its high tenant concentration, with the Department for Work and Pensions (DWP) being the main lessee. Management is actively mitigating this by diversifying into growth sectors such as Purpose-Built Student Accommodation (PBSA) and data centres.
• Trading at a discount to its Net Asset Value and offering a high dividend yield, the REIT presents an attractive valuation, though this is balanced by risks associated with its high gearing and the uncertainty of future DWP lease renewals beyond 2028.

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