In today’s briefing:
- Light & Wonder (LNW AU): Index Implications of NASDAQ Delisting & ASX Primary Listing
- [Quiddity Index] Light & Wonder (LNW US/AU) US Delisting / ASX Relisting Index Event
- SSE50 Index Rebalance Preview: 4 Potential Changes in December
- Pacific Industrial (7250 JP): A Day Before Close, Effissimo Increases Its Stake Further
- [Quiddity Index] Final Flows for the Major Global Index Rebal in November 2025: US$42bn One-Way
- Meilan Airport (357 HK)’s Special Deal And Tardy MGO
- CNGR A/H Listing: PHIP Update and Thoughts on A/H Premium
- UK Index Dec25 Forecast: Largest UK IPO of the Year Among Inclusions
- Douzone Bizon Situation: TOB Setup Looks Weak; Risks Remain, but Still a Tactical Angle in Play
- [456A JP] Human Made IPO a Testament to Japan’s Creative Muscle
Light & Wonder (LNW AU): Index Implications of NASDAQ Delisting & ASX Primary Listing
- Light & Wonder (LNW US) will stop trading on the NASDAQ after the close on 12 November and the sole primary listing will move to Light & Wonder (LNW AU).
- Index trackers will need to sell a lot of Light&Wonder (LNW US) at the close on 12 November. The buying in Light&Wonder (LNW AU) is a lot smaller.
- Light & Wonder (LNW AU) trades at a much lower forward PE compared to Aristocrat Leisure (ALL AU) and there could be a re-rating over the medium-term.
[Quiddity Index] Light & Wonder (LNW US/AU) US Delisting / ASX Relisting Index Event
- In August, Light & Wonder (LNW AU) / Light & Wonder (LNW US) announced that the company would give up its US listing and move to an ASX Primary Listing.
- The NASDAQ delisting has been confirmed (as expected) for 12 November. October saw significant CDI conversions. More have come in the last few days.
- This creates a significant, and interesting set of index events to track.
SSE50 Index Rebalance Preview: 4 Potential Changes in December
- With the review period complete, there are 6 non-constituents in direct inclusion zone and 4 current constituents in direct deletion zone. However, as usual, there will be discretion used.
- 4 changes result in a one-way turnover of 4%, leading to a round-trip trade of CNY 17bn (US$2.4bn). Index arb balances will increase the impact on the stocks.
- The index committee has used discretion in selecting the index adds and deletes and that could continue to be the case at this review too.
Pacific Industrial (7250 JP): A Day Before Close, Effissimo Increases Its Stake Further
- On 23 October, the MBO price for Pacific Industrial (7250 JP) was increased by 42.4% to JPY2,919 per share. The offer closes on 7 November.
- Today, Effissimo further increased its stake to 8.6 million shares, representing 13.97% of outstanding shares and a 14.82% ownership ratio. The implication is that Effissimo remains unsupportive.
- The shares trade above terms, and the close is likely to be extended. Another bump is possible, but likely, the Ogawas will first try to lower the minimum acceptance condition.
[Quiddity Index] Final Flows for the Major Global Index Rebal in November 2025: US$42bn One-Way
- A major global index provider announced its quarterly review on 5th November 2025. The rebalance will take place on 24th November 2025.
- There were 133 changes announced. We got 115 of these 133 changes – around 86%.
- In this insight, we have presented our final flow expectations for the confirmed index changes and provide a few comments on specific situations.
Meilan Airport (357 HK)’s Special Deal And Tardy MGO
- Back on the 30th April 2025, Hainan Meilan International Airport (357 HK) (“Meilan Airport”) announced a potential change of control, via its domestic shares.
- In principle, this situation involves the re-arrangement of Meilan Airport shares under the same ultimate beneficiary. Nevertheless, the share transfer will trigger an unconditional MGO at HK$10.62/share.
- Yesterday, H-class shareholders approved a “Special Deal” at an EGM. And the share price closed above terms. That vote has nothing to do with the share transfer. Perhaps …
CNGR A/H Listing: PHIP Update and Thoughts on A/H Premium
- CNGR Advanced Material (300919 CH), a Chinese battery-component producer, aims to raise up to US$700m in its H-share listing.
- CNGR is a Chinese battery-component producer and a new energy materials company.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
UK Index Dec25 Forecast: Largest UK IPO of the Year Among Inclusions
- Shawbrook (SHAW LN), the biggest UK IPO of the year, is expected to be included in UK 250 and All-Share at a market cap of ~£2bn.
- Pan African Resources (PAF LN) transferred its listing to the Main Market resulting in its anticipated addition to UK 250 and All-Share at a market cap of ~£1.8bn.
- Princes Group (PRN LN) is anticipated to be included in UK 250 and All-Share following its IPO in November at a market cap of ~£1bn.
Douzone Bizon Situation: TOB Setup Looks Weak; Risks Remain, but Still a Tactical Angle in Play
- EQT appears to be focused on IRR, prioritizing integration over equity; TOB looks low-return, rights issue chatter spooked markets today, so TOB-driven positioning isn’t realistic near term.
- EQT also faces risks: FSS cap raise approval and a relatively light 34.85% stake limiting exit flexibility. Still, there’s a tactical angle in play.
- EQT skipping TOB, but stealthy on-screen buys could spark a flow bounce; local market still eyes short-term setup trade on gradual stake-building.
[456A JP] Human Made IPO a Testament to Japan’s Creative Muscle
- A Bathing Ape was a major success in the eyes of customers, but behind the scenes, founder Nigo became a victim of this very success.
- Human Made is a different story, structured to give the designer full rein creatively but with experts in operations and marketing making the whole project more sustainable.
- Sales have risen 10-fold since 2020 and the brand will IPO this month, representative of the huge potential for Japan’s creative talent.
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