Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>On 16th Nov 22, post-market close, along with its 3Q22 results Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan.</li>
<li>At the time of declaration, the dividend amounted to US$20bn or 15.5% of Meituan’s outstanding shares. Its value has since declined to US$17bn.</li>
<li>In this note, we talk about the implications of the deal and what one can glean from looking at the previous dividend payout for JD.com.</li>
</ul>


On 16th Nov 22, post-market close, along with its 3Q22 results Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan.
At the time of declaration, the dividend amounted to US$20bn or 15.5% of Meituan’s outstanding shares. Its value has since declined to US$17bn.
In this note, we talk about the implications of the deal and what one can glean from looking at the previous dividend payout for JD.com.


Tencent Meituan Dividend - The US$17bn Overhang Is Almost Here - Lesson from JD.com

Equity Capital Markets

Doosan Bobcat Inc / Equity Capital Markets

<ul>
<li>A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat.</li>
<li>The same shareholders had earlier sold in Nov 22, see <a href="https://www.smartkarma.com/insights/doosan-bobcat-placement-momentum-is-strong-but-past-deals-have-been-a-mixed-bag" target="_blank" data-smartkarma-citation="insights:85256" rel="noopener">Doosan Bobcat Placement - Momentum Is Strong but past Deals Have Been a Mixed Bag</a>. That deal didn’t do well.</li>
<li>In this note, we will run the deal through our ECM framework and comment on other deal dynamics.</li>
</ul>


A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat.
The same shareholders had earlier sold in Nov 22, see Doosan Bobcat Placement - Momentum Is Strong but past Deals Have Been a Mixed Bag. That deal didn’t do well.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.


Doosan Bobcat Placement - Past Deal Didn’t Do Well, This Time Could Be Different

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Fresh after the courts rejected new share issuance, <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao (035720 KS)</a> has launched an Offer for <a href="https://www.smartkarma.com/entities/s-m-entertainment-co" target="_blank" data-smartkarma-citation="entities:3500:1" rel="noopener">S.M.Entertainment (041510 KS)</a>, less than a week after <a href="https://www.smartkarma.com/entities/hybe-co-ltd" target="_blank" data-smartkarma-citation="entities:28959:1" rel="noopener">HYBE (352820 KS)</a>'s deal closed.</li>
<li>Kakao, holding 4.9%, is seeking to lift its stake to ~40% via a tender offer at ₩150,000/share, a 25% premium to HYBE's offer price. </li>
<li>The key question is - will HYBE counter? I would not be so sure. </li>
</ul>


Fresh after the courts rejected new share issuance, Kakao (035720 KS) has launched an Offer for S.M.Entertainment (041510 KS), less than a week after HYBE (352820 KS)'s deal closed.
Kakao, holding 4.9%, is seeking to lift its stake to ~40% via a tender offer at ₩150,000/share, a 25% premium to HYBE's offer price. 
The key question is - will HYBE counter? I would not be so sure. 


K-Pop Battle, Round 2: Kakao’s Tender Offer For S.M. Entertainment

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Kakao and Kakao Entertainment each plan to purchase 4.167 million shares at ₩150,000 per share, totaling 8.33 million. This is a 14.5% premium to the last close.</li>
<li>The tendering ending date is March 26th, Sunday, so the actual ending date is March 24th. Since Korea adopts the T+2 settlement system, stocks must be purchased by the 22nd.</li>
<li>The price of SM may decline towards below the tender price relatively quickly as a large number of retail investors will likely bet on the prolonged proxy battle.</li>
</ul>


Kakao and Kakao Entertainment each plan to purchase 4.167 million shares at ₩150,000 per share, totaling 8.33 million. This is a 14.5% premium to the last close.
The tendering ending date is March 26th, Sunday, so the actual ending date is March 24th. Since Korea adopts the T+2 settlement system, stocks must be purchased by the 22nd.
The price of SM may decline towards below the tender price relatively quickly as a large number of retail investors will likely bet on the prolonged proxy battle.


Kakao's Tender Offer to SM Ent Shareholders: Key Details of Disclosure Filed This Morning

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 7 March, Kakao Corp (035720 KS) announced a tender offer of up to 35% of outstanding shares of SM Entertainment at 150,000 won per share.</li>
<li>We believe that this will be a successful tender offer and the share price of SM Entertainment is likely to surge to near 150,000 won per share. </li>
<li>The minority shareholders of SM Entertainment are cheering on as its share price appreciation will be nearly 96% from end of 2022 to the tender offer price of 150,000 won. </li>
</ul>


On 7 March, Kakao Corp (035720 KS) announced a tender offer of up to 35% of outstanding shares of SM Entertainment at 150,000 won per share.
We believe that this will be a successful tender offer and the share price of SM Entertainment is likely to surge to near 150,000 won per share. 
The minority shareholders of SM Entertainment are cheering on as its share price appreciation will be nearly 96% from end of 2022 to the tender offer price of 150,000 won. 


Kakao Announces a Tender Offer of SM Entertainment at 150,000 Won Per Share

South Korea

Kakao Corp. provides Internet portal services such as news, free e-mail, and leisure information.  The Company also offers cross-platform mobile messaging application that allows users to exchange messages.

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Kakao Corp (035720 KS)

Tencent Meituan Dividend - The US$17bn Overhang Is Almost Here - Lesson from JD.com

On 16th Nov 22, Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan. The US$17bn overhang...

Sumeet Singh

Doosan Bobcat Placement - Past Deal Didn’t Do Well, This Time Could Be Different

A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat. This is a clean-up trade.

Sumeet Singh

K-Pop Battle, Round 2: Kakao’s Tender Offer For S.M. Entertainment

Trading tight at a <1% gross spread to terms. HYBE may bid higher. And Kakao can counter. I think Kakao wants this more than HYBE. I would not...

David Blennerhassett

Kakao's Tender Offer to SM Ent Shareholders: Key Details of Disclosure Filed This Morning

This post details Kakao's latest tender offer to SM Entertainment shareholders at a 15% premium to the last close and discusses trading angles that...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent Meituan Dividend - The US$17bn Overhang Is Almost Here - Lesson from JD.com

On 16th Nov 22, Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan. The US$17bn overhang...

Sumeet Singh

Doosan Bobcat Placement - Past Deal Didn’t Do Well, This Time Could Be Different

A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat. This is a clean-up trade.

Sumeet Singh

K-Pop Battle, Round 2: Kakao’s Tender Offer For S.M. Entertainment

Trading tight at a <1% gross spread to terms. HYBE may bid higher. And Kakao can counter. I think Kakao wants this more than HYBE. I would not...

David Blennerhassett

Kakao's Tender Offer to SM Ent Shareholders: Key Details of Disclosure Filed This Morning

This post details Kakao's latest tender offer to SM Entertainment shareholders at a 15% premium to the last close and discusses trading angles that...

Sanghyun Park

Kakao Announces a Tender Offer of SM Entertainment at 150,000 Won Per Share

On 7 March, Kakao Corp (035720 KS) announced a tender offer of up to 35% of outstanding shares of SM Entertainment at 150,000 won per share. We...

Douglas Kim