IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

AAG Energy (2686 HK): Adjourned Scheme Meeting Points to a Close Vote

Weekly Deals Digest (30 Apr) - AAG, HKBN, Blackmores, Lian Beng, Horizon Construction, Mankind

Merger Arb Mondays (01 May) - HKBN, AAG Energy, United Malt, Blackmores, Origin, Metro Pacific

AAG Energy (2686 HK): Pre-Condition Satisfied as Doubts Sets In

AAG Energy (2686 HK): Solid Results Amplify the Risk of the NO Vote

AAG Energy (2686 HK): Rushed Scheme Document Points to a Vote on a Knife Edge

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Event-Driven

<ul>
<li>Ahead of <a href="https://www.smartkarma.com/entities/aag-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:501:1" rel="noopener">Aag Energy Holdings (2686 HK)</a>’s vote on 27 April, the gross spread to <a href="https://www.smartkarma.com/entities/xinjiang-xintai-natural-gas-a" target="_blank" data-smartkarma-citation="entities:27036:1" rel="noopener">Xinjiang Xintai Natural Gas (603393 CH)</a>’s HK$1.85 offer sits uncomfortably high at 13.5%. </li>
<li>The key risk remains that minorities vote down the scheme. Retail forums are active with mixed views on the offer. Peers have also modestly re-rated, which helps the NO camp. </li>
<li>At the last close, the risk-reward profile is unfavourable as the downside to a scheme fail (-16.0%) is greater than the upside to a scheme pass (+13.5%).  </li>
</ul>


Ahead of Aag Energy Holdings (2686 HK)’s vote on 27 April, the gross spread to Xinjiang Xintai Natural Gas (603393 CH)’s HK$1.85 offer sits uncomfortably high at 13.5%. 
The key risk remains that minorities vote down the scheme. Retail forums are active with mixed views on the offer. Peers have also modestly re-rated, which helps the NO camp. 
At the last close, the risk-reward profile is unfavourable as the downside to a scheme fail (-16.0%) is greater than the upside to a scheme pass (+13.5%).  


Yanchang Petroleum International (346 HK)

China Energy Development Holdings Ltd (228 HK)

AAG Energy (2686 HK): Nervousness Ahead of the 27 April Vote