Daily BriefsEvent-Driven

Event-Driven: LG Energy Solution, BHP Group, Nippon Paint Holdings, Razer Inc and more

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

By Brian Freitas

  • 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

By David Blennerhassett

  • 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

By Brian Freitas

  • 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

By David Blennerhassett


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