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

Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>At the beginning of the week, I was determined to have this post with a more bullish tone. Maybe it is a contrarian indicator.</li><li>But as of yesterday's market, I see that my efforts were rather over-optimistic.</li><li>The note is what is in front of me rather than speculating we are at the change in trend.</li></ul>

At the beginning of the week, I was determined to have this post with a more bullish tone. Maybe it is a contrarian indicator.But as of yesterday's market, I see that my efforts were rather over-optimistic.The note is what is in front of me rather than speculating we are at the change in trend.

HSI Properties, Link RIET, HSI Financials, China Merchants Bank, and ICBC

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> 1Q23 DPU +5.0% YoY; Robust DPU growth and reversions number </li><li><a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> 1Q23 Business Updates – FW recovery continues</li><li><a href="https://www.smartkarma.com/entities/capitaland-integrated-commercial-trust" target="_blank" data-smartkarma-citation="entities:105" rel="noopener">Capitaland Integrated Commercial Trust (CICT SP)</a> , <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872" rel="noopener">Link REIT (823 HK)</a>, <a href="https://www.smartkarma.com/entities/frasers-property-ltd" target="_blank" data-smartkarma-citation="entities:1670" rel="noopener">Frasers Property Ltd (FPL SP)</a> competing for NTUC's S$4bn shopping malls</li></ul>

Mapletree Logistics Trust (MLT SP) 1Q23 DPU +5.0% YoY; Robust DPU growth and reversions number Mapletree North Asia Commercial Trust (MAGIC SP) 1Q23 Business Updates – FW recovery continuesCapitaland Integrated Commercial Trust (CICT SP) , Link REIT (823 HK), Frasers Property Ltd (FPL SP) competing for NTUC's S$4bn shopping malls

ASEAN Builder's Scoop (22Jul22) - MLT Robust Growth and Reversions

<ul>
<li>Hong Kong's Link Riet has excellent assets, but the fears of further lockdowns and rising interest rates do not make for a good combination.</li>
<li>They seem to be leading other mall operators despite higher quality assets (mostly low-end and necessities).</li>
<li>Globally none of the delivery services has a cost-effective, scalable model, as they hit the regulatory challenges and hiring costs increases for every scaleup. </li>
</ul>


Hong Kong's Link Riet has excellent assets, but the fears of further lockdowns and rising interest rates do not make for a good combination.
They seem to be leading other mall operators despite higher quality assets (mostly low-end and necessities).
Globally none of the delivery services has a cost-effective, scalable model, as they hit the regulatory challenges and hiring costs increases for every scaleup. 


Hang Seng Index Constituents 22nd June 2022

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

* New Transaction In Australia: On November 7, 2021, Link REIT (823.HK) [Link] announced a proposed acquisition of a 50% stake three shopping malls in Sydney for AUD 538 mn or HKD 3.3 bn, in a deal where it has no control of the properties;  * Limited Disclosure Raises Eyebrows: Link did not disclose the annual income on the properties, nor the projected tenant lease expiry and changes in foot traffic between pre and post COVID-19; and  *Hong Kong Pressures Are Very Apparent: This transaction so far away from Link REIT’s core competency that it speaks volumes as to where it believes its core Hong Kong retail business is heading. This doesn’t seem like smart diversification and smells more of panic leverage when one considers the thre price and location of this deal.

 * New Transaction In Australia: On November 7, 2021, Link REIT (823.HK) [Link] announced a proposed acquisition of a 50% stake three shopping malls in Sydney for AUD 538 mn or HKD 3.3 bn, in a deal where it has no control of the properties;  * Limited Disclosure Raises Eyebrows: Link did not disclose the annual income on the properties, nor the projected tenant lease expiry and changes in foot traffic between pre and post COVID-19; and  *Hong Kong Pressures Are Very Apparent: This transaction so far away from Link REIT’s core competency that it speaks volumes as to where it believes its core Hong Kong retail business is heading. This doesn’t seem like smart diversification and smells more of panic leverage when one considers the thre price and location of this deal. 

Hong Kong

Link REIT is a real estate investment trust in Hong Kong. The Trust owns and operates shopping centers, parking space facilities and real estate retail space.

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Link REIT (823 HK)

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

HSI Properties, Link RIET, HSI Financials, China Merchants Bank, and ICBC

At the beginning of the week, I was determined to have this post with a more bullish tone. Maybe it is a contrarian indicator.

Untying The Gordian Knot

ASEAN Builder's Scoop (22Jul22) - MLT Robust Growth and Reversions

MAGIC FW recovery continues; CICT/Link REIT/FPL vying for NTUC's mall assets; Non-landed luxury prop deals rose 64% YoY in 2Q22; CPN rolling out 50...

SCCM Asia Research

Hang Seng Index Constituents 22nd June 2022

Hong Kong's Link Riet has excellent assets, but the fears of further lockdowns and rising interest rates do not make for a good combination.

Untying The Gordian Knot

Link REIT – Another Odd Deal

LINK REIT: Link announced a proposed acquisition of a 50% stake three shopping malls in Sydney for HKD 3.3 bn, in a deal where it has no control of...

Thomas J. Monaco

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