In today’s briefing:
- LG Energy Solution (373220 KS) IPO: Comprehensive Index (Fast) Entry List
- Nippon Paint Placement Quick Update – Better Positioned After Delivering the Largest Correction
- LG Energy Solution Bookbuilding Results
- Hitachi Finally Bailing on Hitachi Construction (6305); Too Early To Buy
- 51job (JOB US): 27.6% Reduction In Terms
LG Energy Solution (373220 KS) IPO: Comprehensive Index (Fast) Entry List
- The LG Energy Solution (373220 KS) IPO will be the largest ever in Korea and will result in Fast Entry to a lot of local and global indices.
- A lot of the passive flow will be front loaded across the KOSPI200, local Battery indices, BBIG, MSCI Korea, FTSE All-World with back end flow on global battery indices.
- Given the passive assets tracking the Battery ETFs locally and globally, a significant portion of LG Energy Solution (373220 KS)‘s float will be locked up in passive products.
Nippon Paint Placement Quick Update – Better Positioned After Delivering the Largest Correction
- A group of shareholders of Nippon Paint Holdings, plan to raise around US$1.4bn via selling nearly 6% of the stock.
- We covered most aspects of the deal in our previous note, Nippon Paint Holdings Placement – Nothing particularly exciting, needs to correct.
- In this note, we will talk about the updates and share price movement since then.
LG Energy Solution Bookbuilding Results
- Numerous local media have mentioned that the institutional book building of LG Energy Solution IPO has been a big success.
- It is estimated that the demand ratio of this IPO was more than 1,500 to 1. The IPO price has been mostly confirmed at 300,000 won per share.
- Our base case valuation of LG Energy Solution is implied market cap of 99.2 trillion won and implied price per share of 424,093 won.
Hitachi Finally Bailing on Hitachi Construction (6305); Too Early To Buy
- An NHK report today post-close said Hitachi Ltd (6501 JP) would sell “about half” its stake in sub Hitachi Construction Machinery (6305 JP) to Itochu and Japan Industrial Partners.
- That is quite similar to the announcement 15 months ago in the Nikkei which precipitated a large drop. While unconfirmed, it smells like there is fire behind the smoke.
- The big question is What Next? and What Impact for shareholders? That’s a tough couple of questions.
51job (JOB US): 27.6% Reduction In Terms
- Not an overreaction after all. After shares closed down 19.2% on the 8 November, 20% adrift of indicative terms, that appeared overdone.
- Now 51 Job Inc (JOBS US) has announced the Offeror has proposed reducing the merger consideration from US$79.05 in cash per common share to US$57.25.
- Shares closed up, but still at a 14.5% gross spread to terms. The new construct, and the reasons for doing so, are decidedly baffling.
Before it’s here, it’s on Smartkarma
