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

Weekly Deals Digest (17 May) - Kakaku, Paltac, Nippon Dry Chem, Shinko Shoji, Baoye, ENN, OOh!Media

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>On 8 May, <a href="https://www.smartkarma.com/entities/baoye-group-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:16758:1" rel="noopener">Baoye Group (2355 HK)</a> received a resolution for a special dividend of HK$5.50, which was proposed by a shareholder (representing 1.02% of the outstanding shares).</li>
<li>The special dividend represents a 40.7% premium to the undisturbed price. The management opposes the resolution and has the votes to block the resolution at the 18 June AGM. </li>
<li>The proposal shines a light on the Board’s poor capital allocation of the HK$12.58 net cash. Near-term, it also increases the odds of a privatisation proposal from the Chairman. </li>
</ul>


On 8 May, Baoye Group (2355 HK) received a resolution for a special dividend of HK$5.50, which was proposed by a shareholder (representing 1.02% of the outstanding shares).
The special dividend represents a 40.7% premium to the undisturbed price. The management opposes the resolution and has the votes to block the resolution at the 18 June AGM. 
The proposal shines a light on the Board’s poor capital allocation of the HK$12.58 net cash. Near-term, it also increases the odds of a privatisation proposal from the Chairman. 


Baoye (2355 HK): Unusual Activism Which Could Be a Template for Dealing with Cash Hoards