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>
<a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> (LREIT) aims to undertake a 1 for 5 rights issue at a subscription price of HK$44.20/unit, to raise around US$2.4bn.</li>
<li>After announcing a S$2.2bn acquisition in late Dec 2022, the company explicitly mentioned that it didn’t need to raise any new capital. Thus, the rights issue marks an abrupt turnaround.</li>
<li>In this note, we talk about the right issue, its previous acquisition and the overall implications.</li>
</ul>



Link REIT (823 HK) (LREIT) aims to undertake a 1 for 5 rights issue at a subscription price of HK$44.20/unit, to raise around US$2.4bn.
After announcing a S$2.2bn acquisition in late Dec 2022, the company explicitly mentioned that it didn’t need to raise any new capital. Thus, the rights issue marks an abrupt turnaround.
In this note, we talk about the right issue, its previous acquisition and the overall implications.


Link REIT US$2.4bn Rights Issue - Mistimed but Yield at the Rights Price Might Be the Saving Grace

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The <a href="https://www.smartkarma.com/entities/sabana-industrial-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:911:1" rel="noopener">Sabana Industrial REIT (SSREIT SP)</a> 2022H2 dividend went ex- on 6 February 2023, setting the Offer to be lowered. The Offer by Volare was lowered. Docs out Friday night.</li>
<li>The S$0.465 Offer, adjusted for dividends (to be paid 27 March (cash or DRP units)), is now S$0.4504 per unit. The first close is 10 March 2023. </li>
<li>Sabana has underperformed a basket of slightly higher beta peers by 1+% since the day before the announcement. Watch pro-ration risk.</li>
</ul>


The Sabana Industrial REIT (SSREIT SP) 2022H2 dividend went ex- on 6 February 2023, setting the Offer to be lowered. The Offer by Volare was lowered. Docs out Friday night.
The S$0.465 Offer, adjusted for dividends (to be paid 27 March (cash or DRP units)), is now S$0.4504 per unit. The first close is 10 March 2023. 
Sabana has underperformed a basket of slightly higher beta peers by 1+% since the day before the announcement. Watch pro-ration risk.


Sabana Industrial REIT - Offer Goes Live, Worth A Look

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Frasers Logistics & Commercial Trust / Equity Bottom-Up

<ul><li>In January, S-Reits posted 7.1 per cent in total returns (based on the iEdge S-Reit Index) and booked net institutional fund inflows of S$3.2 million, outpacing STI’s 3.5 per cent total returns.</li><li>Within the STI, all seven S-Reits in the index outperformed the STI’s 3.5 per cent total returns for January.</li><li>The top five performing S-Reits were Keppel DC Reit (+15.3 per cent), Mapletree Pan Asia Commercial Trust (+9.0 per cent), Frasers Logistics & Commercial Trust (+8.6 per cent), Mapletree Logistics Trust (+7.7 per cent), and Mapletree Industrial Trust (+7.2 per cent).</li></ul>

In January, S-Reits posted 7.1 per cent in total returns (based on the iEdge S-Reit Index) and booked net institutional fund inflows of S$3.2 million, outpacing STI’s 3.5 per cent total returns.Within the STI, all seven S-Reits in the index outperformed the STI’s 3.5 per cent total returns for January.The top five performing S-Reits were Keppel DC Reit (+15.3 per cent), Mapletree Pan Asia Commercial Trust (+9.0 per cent), Frasers Logistics & Commercial Trust (+8.6 per cent), Mapletree Logistics Trust (+7.7 per cent), and Mapletree Industrial Trust (+7.2 per cent).

REIT Watch - S-Reits report 7 per cent gains in January

<ul>
<li>On Friday, after the close, 5.4% owner of <a href="https://www.smartkarma.com/entities/sabana-industrial-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:911:1" rel="noopener">Sabana Industrial REIT (SSREIT SP)</a> announced it had <a href="https://links.sgx.com/FileOpen/Offer%20Announcement%20for%20Sabana%20REIT%20by%20Volare%20Group%20AG.ashx?App=Announcement&amp;FileID=744629" target="_blank" rel="noopener">offered to buy</a> another 10.0% in a Partial Offer at a recent high price.</li>
<li>The Price of the Tender Offer at S$0.465/share matches a recent (and 7-year) high and a 0.88x multiple against June 2022 NAV of S$0.53/share.</li>
<li>It's a small deal (US$35mm) for a small REIT (US$350mm) but there's an activist and an engaged not-quite sponsor, and this would make a third large unitholder in the mix.</li>
</ul>


On Friday, after the close, 5.4% owner of Sabana Industrial REIT (SSREIT SP) announced it had offered to buy another 10.0% in a Partial Offer at a recent high price.
The Price of the Tender Offer at S$0.465/share matches a recent (and 7-year) high and a 0.88x multiple against June 2022 NAV of S$0.53/share.
It's a small deal (US$35mm) for a small REIT (US$350mm) but there's an activist and an engaged not-quite sponsor, and this would make a third large unitholder in the mix.


Partial Tender for Sabana Industrial REIT - Large Additional Player to the Activist Mix

Capitaland Integrated Commercial Trust / Equity Bottom-Up

<ul><li>Within the S-REIT Sector, the hospitality segment booked the highest net fund inflows and highest average total returns over the past 13 sessions, followed by the two pure-play data centre REITs.</li><li>This follows the stapled hospitality trusts averaging flat total returns in 2022, while also drawing net fund inflows.</li><li>The first 13 sessions of 2023 saw the same 15 trusts average 2.2% gains while booking S$10 million of net fund inflows.</li></ul>

Within the S-REIT Sector, the hospitality segment booked the highest net fund inflows and highest average total returns over the past 13 sessions, followed by the two pure-play data centre REITs.This follows the stapled hospitality trusts averaging flat total returns in 2022, while also drawing net fund inflows.The first 13 sessions of 2023 saw the same 15 trusts average 2.2% gains while booking S$10 million of net fund inflows.

S-REITs In Focus as Earnings Season Begins

Singapore

Mapletree Logistics Trust is an Asia-focused logistics real estate investment trust. The Company invests in a diversified portfolio of income-producing real estate which is used for logistics purposes.

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Mapletree Logistics Trust (MLT SP)

Link REIT US$2.4bn Rights Issue - Mistimed but Yield at the Rights Price Might Be the Saving Grace

Link REIT (823 HK) (LREIT) aims to undertake a 1 for 5 rights issue at a subscription price of HK$44.20/unit, to raise around US$2.4bn. In this...

Sumeet Singh

Sabana Industrial REIT - Offer Goes Live, Worth A Look

Volare AG's Partial Offer to buy 10% of Sabana Industrial REIT is now live. The div has been paid, Offer Price adjusted, and Sabana is cheap vs...

Travis Lundy

REIT Watch - S-Reits report 7 per cent gains in January

In January, S-Reits posted 7.1 per cent in total returns (based on the iEdge S-Reit Index) and booked net institutional fund inflows of S$3.2...

Singapore Exchange Ltd (SGX)

Partial Tender for Sabana Industrial REIT - Large Additional Player to the Activist Mix

Private industrial concern with significant fuel/real estate presence Volare Group AG owns 5.4% of Sabana Industrial REIT. They have announced a...

Travis Lundy

S-REITs In Focus as Earnings Season Begins

Within the S-REIT Sector, the hospitality segment booked the highest net fund inflows and highest average total returns over the past 13 sessions,...

Singapore Exchange Ltd (SGX)

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