In today’s briefing:
- Anycolor (5032) Overseas Offering – Pre-IPO VCs Selling This High Growth Name
- HDFC/HDFC Bank Mega Merger: Foreign Holdings Move Lower; Foreign Room Higher
- Quiddity Primer for HSTECH Rebalance Events
- Anycolor (5032 JP) Shareholder Structure Now And Future
- Fengxiang (9977 HK): A Delisting Fail That Is No Biggie
- Esso Thailand: Ignore Bangchak Corp’s Takeunder
- MSCI Korea: Potential Inclusions & Exclusions in February 2023 Highlighted by Locals
- Good Morning Japan |Fed Hawks Return; Earnings Weigh; ValueAct Tgts S&I(3382); Spate of JP BUY U/Gs
- Pertamina Geothermal Energy IPO Early Look- Ticks the ESG Box but Has Missed Its Targets in the Past
- KOSPI200 Index Rebalance: JB Financial (175330 KS) To Replace Meritz F&M (000060 KS)
Anycolor (5032) Overseas Offering – Pre-IPO VCs Selling This High Growth Name
- In late December, I wrote 2023 High Conviction – Anycolor (5032) Aiming at TSE Prime and TOPIX – And How!. Shares closed at ¥6,470 that day. Then went to ¥5,500.
- They have since rebounded some, and now 3 pre-IPO VC investors have announced an overseas offering. This was NOT unexpected. They need more shares to get their TSE Prime listing.
- The Offering is 3.27mm shares which is 5-6 days of volume. This lifts the TSE Prime inclusion amount, eventually, but the story is still about growth and model.
HDFC/HDFC Bank Mega Merger: Foreign Holdings Move Lower; Foreign Room Higher
- Foreign shareholding in HDFC Limited (HDFC IN) and HDFC Bank (HDFCB IN) has dropped over the December quarter resulting in higher foreign room.
- The merger is expected to complete in Q2/Q3 when we expect there will be large buying from MSCI trackers.
- The merger (and the timing of implementation) will have implications for changes to the NIFTY Index (NIFTY INDEX) and S&P BSE SENSEX Index (SENSEX INDEX) at the forthcoming rebalances.
Quiddity Primer for HSTECH Rebalance Events
- The Hang Seng Tech Index (HSTECH INDEX) represents the 30 largest technology companies listed in Hong Kong which have high business exposure to certain technology themes.
- This index was launched in 2020 and has gained significant passive tracking over the last two years.
- In this insight, we take a brief look at the selection criteria and the historical price performance of past Rebalance Events.
Anycolor (5032 JP) Shareholder Structure Now And Future
- Anycolor (5032 JP) is conducting a Secondary Offering so that three major pre-IPO shareholders can sell their shares. Legend Capital, Skyland Ventures, and Highsino Group are selling.
- That should bring minimum publicly-traded longs to 6.3685mm shares, but it could easily be higher.
- Based on the most conservative read of all the data, Real World Float is a net 21.2% after this offering. In reality, probably higher. But there’s still overhang.
Fengxiang (9977 HK): A Delisting Fail That Is No Biggie
- Unless investing for the back-end, it was a no-brainer once the Composite Document for PAG Capital’s unconditional mandatory Offer for Shandong Fengxiang (9977 HK) was dispatched.
- At the time of the Doc, shares were trading through terms. You could have sold in the market; or opted to tender.
- The General/H-class meetings were held yesterday, the 18 January, to vote on delisting Fengxiang. There was no guarantee this would occur. And it didn’t. Yet the Offer remains open.
Esso Thailand: Ignore Bangchak Corp’s Takeunder
- Back on the 11 January, refiner/retailer Bangchak Corporation (BCP TB)‘s board approved the purchase of a 65.99% stake in Esso Thailand (ESSO TB) from Exxon Mobil.
- The purchase price remains indeterminate (the indicative price is Bt8.84/share), based on a pricing adjustment mechanism as it relates to Esso’s financial accounts at the close of the stake purchase.
- Esso is down 17% since the announcement, and 37% from its recent (Oct-22) high. That seems excessive.
MSCI Korea: Potential Inclusions & Exclusions in February 2023 Highlighted by Locals
- We discuss the potential inclusions and exclusions in the next MSCI Korea Index rebalance announcement (10 February) that are being highlighted by the locals.
- The potential candidates for inclusion in the MSCI Korea Index emphasized by locals in February 2023 include Kakao Pay and Hanwha Aerospace.
- The potential exclusion candidates in the MSCI Korea Index emphasized by locals include S-1 Corp, Celltrion Pharm, and Cheil Worldwide.
Good Morning Japan |Fed Hawks Return; Earnings Weigh; ValueAct Tgts S&I(3382); Spate of JP BUY U/Gs
- OVERSEAS: SPX down 3 in a Row as Fed Hawks out in force; Oil bucks trend ; P&G see weak sales; Musk makes it up on TESLA’s self driving
- JAPAN: Kishida Cabinet approval at record lows; Activist ValueAct tgts S&i(3382); Spate of Street upgrades to BUY incl General Contractors at MS; Japan CPI on tap.
- DAILY NUGGET: Could be Nothing Burger but the costs of US default is rising as Debt Limit hit.
Pertamina Geothermal Energy IPO Early Look- Ticks the ESG Box but Has Missed Its Targets in the Past
- Pertamina Geothermal Energy (PGE) is looking to raise around US$500m in its upcoming Indonesia IPO. PGE is an Indonesian state owned power producer which utilizes geothermal energy to produce electricity.
- PGE currently manages 13 Geothermal Working Areas with a total capacity of 1,877 MW, of which 672 MW is owned by it, while 1,205 MW is via joint operations.
- In this note, we take an early look at the IPO.
KOSPI200 Index Rebalance: JB Financial (175330 KS) To Replace Meritz F&M (000060 KS)
- Jb Financial Group (175330 KS) will replace Meritz Fire & Marine Insurance (000060 KS) in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the close on 27 January.
- We estimate passive KOSPI2 INDEX trackers will need to buy 3.494m shares (KRW 36.34bn; 4.04 days of ADV) of Jb Financial Group (175330 KS) at the close on 27 January.
- DGB Financial Group (139130 KS) could be added to the KOSPI2 INDEX in April, replacing Meritz Securities (008560 KS) following its merger with Meritz Financial Group (138040 KS).
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