Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Feb 17th (reported today) which has an aggregated short interest worth USD14.9bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Suncorp, Corporate Travel, Incitec Pivot, Bhp, Endeavour.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Feb 17th (reported today) which has an aggregated short interest worth USD14.9bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Suncorp, Corporate Travel, Incitec Pivot, Bhp, Endeavour.


ASX Short Interest Weekly (Feb 17th): Suncorp, Corporate Travel, Incitec Pivot, BHP, Endeavour

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Temple & Webster Group Ltd / Event-Driven

<ul>
<li>Global Industry Classification Standard (GICS) structure updates will lead to changes to the S&amp;P/ASX All Technology Index at the March rebalance.</li>
<li>To better reflect the GICS changes and reduce constituent turnover, S&amp;P DJI has proposed changes to the index universe for constituent selection.</li>
<li>We expect there will be 4 deletions from the index in March, but that could increase to 10 if the changes are not adopted.</li>
</ul>


Global Industry Classification Standard (GICS) structure updates will lead to changes to the S&amp;P/ASX All Technology Index at the March rebalance.
To better reflect the GICS changes and reduce constituent turnover, S&amp;P DJI has proposed changes to the index universe for constituent selection.
We expect there will be 4 deletions from the index in March, but that could increase to 10 if the changes are not adopted.


S&P/ASX All Technology Index: GICS Changes, Market Consultation & Potential Index Changes

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Software outfit <a href="https://www.smartkarma.com/entities/readytech-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29105:1" rel="noopener">ReadyTech (RDY AU)</a> has announced an indicative proposal from Pacific Equity Partners and affiliates, to acquire ReadyTech by way of a Scheme of Arrangement at $4.50/share.</li>
<li>Pemba Capital, with 32.01% of shares out, are in discussion with PEP as to what appears to be the PE firm rolling over shares. </li>
<li>ReadyTech's independent board has granted PEP non-exclusive due diligence to flesh out a firm Offer. According to media reports, Microequities, with ~13%, is not on board whatsoever.</li>
</ul>


Software outfit ReadyTech (RDY AU) has announced an indicative proposal from Pacific Equity Partners and affiliates, to acquire ReadyTech by way of a Scheme of Arrangement at $4.50/share.
Pemba Capital, with 32.01% of shares out, are in discussion with PEP as to what appears to be the PE firm rolling over shares. 
ReadyTech's independent board has granted PEP non-exclusive due diligence to flesh out a firm Offer. According to media reports, Microequities, with ~13%, is not on board whatsoever.


Readytech (RDY AU): Microequities Baulks At PEP's A$4.50/Share Indicative Offer

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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.

<ul>
<li>In response to media reports, <a href="https://www.smartkarma.com/entities/appen-ltd" target="_blank" data-smartkarma-citation="entities:15825:1" rel="noopener">Appen Ltd (APX AU)</a> disclosed a non-binding indicative proposal from <a href="https://www.smartkarma.com/entities/telus-international-cda-inc" target="_blank" data-smartkarma-citation="entities:35398:1" rel="noopener">Telus International (TIXT US)</a> at A$9.50, a 48.4% premium to the undisturbed price of A$6.40.</li>
<li>Appen also announced a weak trading update. The 1HFY22 EBITDA is expected to be materially lower than the comparable period due to the lower revenue and the ongoing investment. </li>
<li>Subsequently, Appen noted that Telus revoked its indicative proposal. No reason was given for the decision. Nevertheless, Appen’s depressed share price will continue to attract suitors. </li>
</ul>


In response to media reports, Appen Ltd (APX AU) disclosed a non-binding indicative proposal from Telus International (TIXT US) at A$9.50, a 48.4% premium to the undisturbed price of A$6.40.
Appen also announced a weak trading update. The 1HFY22 EBITDA is expected to be materially lower than the comparable period due to the lower revenue and the ongoing investment. 
Subsequently, Appen noted that Telus revoked its indicative proposal. No reason was given for the decision. Nevertheless, Appen’s depressed share price will continue to attract suitors. 


Telus Revokes It’s A$9.50 Bid for Appen

The bidding for companies in Australia's technology sector continues.
Trading and wealth management software provider <a href="https://www.smartkarma.com/entities/iress-ltd" target="_blank" data-smartkarma-citation="entities:15342:1" rel="noopener">Iress Ltd (IRE AU)</a> <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02400486-3A571606?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> this morning it had received a confidential, unsolicited, non-binding, and indicative proposal from Swedish PE outfit EQT Fund Management via a Scheme of Arrangement at a price range of between A$15.30 and A$15.50 cash per share.
EQT had previously fielded an Offer of A$14.80/share on the 18 June.
Iress' board unanimously concluded that the Proposal was "conditional and did not represent compelling value for Iress shareholders". But the board was:
<blockquote>
prepared to provide it with access to limited non-public information so EQT can develop a proposal that is capable of being recommended to shareholders.
</blockquote>
Iress closed up 15% today, but still 7% below the mid-point of the Indicative Offer price range.
<div>
As always, more below the fold.
</div>

The bidding for companies in Australia's technology sector continues.
Trading and wealth management software provider Iress Ltd (IRE AU) announced this morning it had received a confidential, unsolicited, non-binding, and indicative proposal from Swedish PE outfit EQT Fund Management via a Scheme of Arrangement at a price range of between A$15.30 and A$15.50 cash per share.
EQT had previously fielded an Offer of A$14.80/share on the 18 June.
Iress' board unanimously concluded that the Proposal was "conditional and did not represent compelling value for Iress shareholders". But the board was:

prepared to provide it with access to limited non-public information so EQT can develop a proposal that is capable of being recommended to shareholders.

Iress closed up 15% today, but still 7% below the mid-point of the Indicative Offer price range.

As always, more below the fold.


Australia

Altium Limited develops electronic design automation (EDA) software for the Microsoft Windows operating system.  Altium's products facilitate and aid in the design of electronic products such as printed circuit boards.  The Group's products are utilized by telecommunications, automotive, defense, science and consumer electronics industries.

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Altium Ltd (ALU AU)

ASX Short Interest Weekly (Feb 17th): Suncorp, Corporate Travel, Incitec Pivot, BHP, Endeavour

We analyzed ASX short interest report for the past week and highlight short interest changes in Suncorp, Corporate Travel, Incitec Pivot, Bhp,...

Ke Yan, CFA, FRM

S&P/ASX All Technology Index: GICS Changes, Market Consultation & Potential Index Changes

Changes to the GICS structure will result in deletions from the S&P/ASX All Tech Index in March. There could be 4 deletions if the index universe...

Brian Freitas

Telus Revokes It’s A$9.50 Bid for Appen

Telus pulled its A$9.50 indicative offer likely due to the weak trading update. Nevertheless, Appen’s depressed share price will continue to...

Arun George

Iress (ASX AU) Bats Away EQT - For Now

I would be picking Iress up on any weakness. This space is attracting a lot of interested parties. However, this is still a non-binding situation.

David Blennerhassett

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52-week Range

Market Cap (USDm)

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ASX Short Interest Weekly (Feb 17th): Suncorp, Corporate Travel, Incitec Pivot, BHP, Endeavour

We analyzed ASX short interest report for the past week and highlight short interest changes in Suncorp, Corporate Travel, Incitec Pivot, Bhp,...

Ke Yan, CFA, FRM

S&P/ASX All Technology Index: GICS Changes, Market Consultation & Potential Index Changes

Changes to the GICS structure will result in deletions from the S&P/ASX All Tech Index in March. There could be 4 deletions if the index universe...

Brian Freitas

Readytech (RDY AU): Microequities Baulks At PEP's A$4.50/Share Indicative Offer

Given the indictive nature, trading at an 8.9% gross spread. I'd be disinclined to chase this given the number of no-deals in this space, and...

David Blennerhassett

Telus Revokes It’s A$9.50 Bid for Appen

Telus pulled its A$9.50 indicative offer likely due to the weak trading update. Nevertheless, Appen’s depressed share price will continue to...

Arun George

Iress (ASX AU) Bats Away EQT - For Now

I would be picking Iress up on any weakness. This space is attracting a lot of interested parties. However, this is still a non-binding situation.

David Blennerhassett