In today’s briefing:
- LG Energy Solution (373220 KS) IPO: Bookbuilding Results & Implications
- Last Week in Event SPACE: BHP Group, Crown Resorts, 51job, Hitachi, Razer Inc
- Index Rebalance & ETF Flow Recap: STI, LQ45, China 50/A50, FTSE, BBIG, BHP, LG Energy, Nippon Paint
- Asia-Pac Weekly Risk Arb Summary: Razer, Crown Resorts, Katakura, Ausnutria, API, Irongate
LG Energy Solution (373220 KS) IPO: Bookbuilding Results & Implications
- The LG Energy Solution (373220 KS) IPO was oversubscribed 2,023 times. At the IPO price of KRW 300,000/share, that works out to US$11.92 trillion of bids.
- Over 77% of the shares bid for by institutions had voluntary lock-ups from 15 days to 6 months. The final allocations could have between 60-65% of the allocation locked up.
- Fast Entry to the KOSPI2, MSCI Standard and the FTSE All-World Indexes is a near certainty. Around 15% of float will be bought by these passive trackers in Feb/March.
Last Week in Event SPACE: BHP Group, Crown Resorts, 51job, Hitachi, Razer Inc
- Crown Resorts (CWN AU) backs Blackstone’s revised Offer of A$13.10/share in cash, from A$12.50 previously, and up from A$11.85/share initially.
- The endgame approaches for the BHP (BHP AU) Unification trade. S&P announced the S&P/ASX upweight would be one-shot, as expected. Regulatory approvals are in. SARB has set BHP SJ as “domestic.”
- The Offeror slashes the Offer price for 51 Job (JOBS US) by 27.6%, however, it’s not clear how the new deal terms sidestep the regulator nor justify a reduction.
Index Rebalance & ETF Flow Recap: STI, LQ45, China 50/A50, FTSE, BBIG, BHP, LG Energy, Nippon Paint
- We look at potential changes to the STI, LQ45, FTSE China 50, FTSE AW/AC and KRX New Deal indices at the upcoming rebalances.
- FTSE has announced a Ground Rule change for the FTSE China A50 Index. S&P DJI announced that the BHP Group (BHP AU) Unification would be implemented in one step.
- All eyes will be on the LG Energy Solution (373220 KS) IPO for the next couple of weeks and we take a comprehensive look at potential index (fast) entries.
Asia-Pac Weekly Risk Arb Summary: Razer, Crown Resorts, Katakura, Ausnutria, API, Irongate
- There are currently 45 – mostly firm – transactions currently being discussed and analysed on Smartkarma.
- One new deal discussed this week – SASAC-backed Hubei Ports’ tilt for China Infrastructure & Logistics Group (1719 HK).
- There were updates for Crown Resorts (CWN AU), Razer Inc (1337 HK), Australian Pharmaceutical Industries (API AU), Katakura Industries (3001 JP), and Irongate Group (IAP AU).
Before it’s here, it’s on Smartkarma