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 TWSE stocks last week which has an aggregated short interest worth USD 13.3bn. </li>
<li>We highlight short interest changes in Yang Ming Marine, Silergy, Nan Ya Printed, Powerchip, Unimicron, and Evergreen Marine.</li>
<li>Top shorts in the market were UMC, Taiwan Cement, and Yang Ming Marine. </li>
</ul>


We analyzed the changes in short interest of TWSE stocks last week which has an aggregated short interest worth USD 13.3bn. 
We highlight short interest changes in Yang Ming Marine, Silergy, Nan Ya Printed, Powerchip, Unimicron, and Evergreen Marine.
Top shorts in the market were UMC, Taiwan Cement, and Yang Ming Marine. 


TWSE Short Interest Weekly (Aug 19th): Yang Ming Marine, Silergy, Nan Ya

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>’s scheme was approved at today’s court meeting. The value test passed with 94.74% of the total disinterested shareholders voting in favour of the scheme.</li>
<li>Despite our reservations about the headcount test, the scheme comfortably passed the headcount test with 465 for and just 16 against the scheme. </li>
<li>At the last close and for the 20 May payment date, the gross and annualised spread to the offer is 3.7% and 56.1%, respectively.</li>
</ul>



Razer Inc (1337 HK)’s scheme was approved at today’s court meeting. The value test passed with 94.74% of the total disinterested shareholders voting in favour of the scheme.
Despite our reservations about the headcount test, the scheme comfortably passed the headcount test with 465 for and just 16 against the scheme. 
At the last close and for the 20 May payment date, the gross and annualised spread to the offer is 3.7% and 56.1%, respectively.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>'s scheme document is out with the scheme meeting scheduled for 26 April. The IFA considers the offer to be fair and reasonable. </li>
<li>The headcount test, the key risk, applies unless the amended Cayman Islands Act becomes law before the court meeting date on 26 April. The legislative timetable has not been set. </li>
<li>Current deal probability implies a 65% chance of success, which fairly reflects the deal risk in our view. At last close, the gross spread is 14.2%. </li>
</ul>



Razer Inc (1337 HK)'s scheme document is out with the scheme meeting scheduled for 26 April. The IFA considers the offer to be fair and reasonable. 
The headcount test, the key risk, applies unless the amended Cayman Islands Act becomes law before the court meeting date on 26 April. The legislative timetable has not been set. 
Current deal probability implies a 65% chance of success, which fairly reflects the deal risk in our view. At last close, the gross spread is 14.2%. 


Razer’s Scheme Meeting on 26 April, Headcount Test Still Applicable, IFA Opinion

<ul>
<li>
<a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>'s FY21 results beat consensus revenue by 8% but came below consensus EBIT by 3%, based on CapitalIQ data.</li>
<li>The management did their best to dampen sentiment by pointing out slowing growth momentum and margin compression due to significant growth investments in 2022.  </li>
<li>We think that the results/outlook do little to increase the attractiveness of the offer. We would be buyers up to HK$2.5 per share (implies 65% deal probability).</li>
</ul>



Razer Inc (1337 HK)'s FY21 results beat consensus revenue by 8% but came below consensus EBIT by 3%, based on CapitalIQ data.
The management did their best to dampen sentiment by pointing out slowing growth momentum and margin compression due to significant growth investments in 2022.  
We think that the results/outlook do little to increase the attractiveness of the offer. We would be buyers up to HK$2.5 per share (implies 65% deal probability).


Razer's Offer Spread Risk/Reward – FY21 Results

<ul>
<li>
<a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>'s scheme document will be released after the FY21 results, which are on 17 March. The headcount test is a key challenge. </li>
<li>
<a href="https://www.smartkarma.com/entities/logitech-international-sa" target="_blank" data-smartkarma-citation="entities:22422:1" rel="noopener">Logitech International SA (LOGN SW)</a>’s investor/analyst day on 3 March underscores Razer’s opportunity and adds to minorities’ grievances that the offer price is unattractive. </li>
<li>Current deal probability implies broadly a 50/50 chance of success with a gross spread of 19%. We would be buyers up to HK$2.5 per share (implies 65% deal probability).</li>
</ul>



Razer Inc (1337 HK)'s scheme document will be released after the FY21 results, which are on 17 March. The headcount test is a key challenge. 

Logitech International SA (LOGN SW)’s investor/analyst day on 3 March underscores Razer’s opportunity and adds to minorities’ grievances that the offer price is unattractive. 
Current deal probability implies broadly a 50/50 chance of success with a gross spread of 19%. We would be buyers up to HK$2.5 per share (implies 65% deal probability).


Razer's Offer Spread Risk/Reward – Takeaways from Logitech’s Investor Day

Taiwan

Asustek Computer Inc. manufactures and markets computer motherboards, interface cards, notebook computers, and other related products.

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Asustek Computer (2357 TT)

TWSE Short Interest Weekly (Aug 19th): Yang Ming Marine, Silergy, Nan Ya

We analyzed the TWSE short interest last week and highlight short interest changes in Yang Ming Marine, Silergy, Nan Ya Printed, Powerchip,...

Ke Yan, CFA, FRM

Razer’s Scheme: And that Is a Pass

Despite our reservations, the scheme comfortably passed the headcount test with 465 for and just 16 against. At the last close and for the 20 May...

Arun George

Razer’s Scheme Meeting on 26 April, Headcount Test Still Applicable, IFA Opinion

Razer's scheme/court meeting is scheduled for 26 April. The headcount test applies unless the amended Cayman Islands Act becomes law before the...

Arun George

Razer's Offer Spread Risk/Reward – FY21 Results

The management did their best to sound downbeat by pointing out slowing growth and margin compression in 2022. We think that the results/outlook do...

Arun George

Razer's Offer Spread Risk/Reward – Takeaways from Logitech’s Investor Day

Logitech’s investor day on 3 March underscores Razer’s opportunity. Current deal probability implies broadly a 50/50 chance of success with a gross...

Arun George

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