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.

Equity Capital Markets

Cisarua Mountain Dairy / Equity Capital Markets

<ul>
<li>PT Cisarua Mountain Dairy (CMD), a producer of dairy and consumer foods, aims to raise up to US$263m in its Indonesian IPO.</li>
<li>It is a market leader in the overall yogurt sub-category as well as in the spoonable and drinking yogurt segments with a market share of 53.2%, 71.9% and 50.3%, respectively. </li>
<li>In our previous note, link <a href="https://www.smartkarma.com/insights/cisarua-mountain-dairy-cimory-ipo-the-positives-fast-growth-high-market-share" target="_blank" rel="noopener">here</a>,  we spoke about the positive aspects of the deal. In this note we will talk about the negative aspects</li>
</ul>


PT Cisarua Mountain Dairy (CMD), a producer of dairy and consumer foods, aims to raise up to US$263m in its Indonesian IPO.
It is a market leader in the overall yogurt sub-category as well as in the spoonable and drinking yogurt segments with a market share of 53.2%, 71.9% and 50.3%, respectively. 
In our previous note, link here,  we spoke about the positive aspects of the deal. In this note we will talk about the negative aspects


Cisarua Mountain Dairy  (Cimory) IPO - The Negatives - Losing Market Share, Margin Sustainability

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Metropolitan Bank & Trust / Equity Bottom-Up

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<p>On the <a href="https://www.phcc.gov.ph/press-releases/banks-mca-moa/" target="_blank" rel="noopener">5 November</a>, Bangko Sentral ng Pilipinas (BSP - the central bank of the Philippines), the Securities and Exchange Commission, Philippine Competition Commission (PCC), Philippine Deposit Insurance Corp, and the Cooperative Development Authority signed a multi-agency agreement to streamline the merger, consolidation, and acquisition (MCA) process to encourage consolidation in the banking sector.</p>
<p>BSP Governor Benjamin Diokno said the agreement "<em>aims to streamline processes, reduce processing time, and facilitate prompt action of applications for mergers, consolidations, and acquisitions</em>". PCC's Arsenio Balisacan added: "<em>We acknowledge that mergers, consolidations, and acquisitions can catalyse innovation in any industry, including banking, because of combined resources and expertise". </em></p>
<p>The agreement, in effect, harmonizes the paperwork across the various regulators, by reducing the number of documentary requirements to 30 from 58, which in turn lowers the total processing time to an expected 55 business days from an average of 160 business days currently.</p>
<p>According to the <a href="https://www.phcc.gov.ph/press-releases/banks-mca-moa/" target="_blank" rel="noopener">PCC</a>, the "<em>Implementing Guidelines on the procedures for MCA applications will subsequently be issued via a Joint Circular by the partner-agencies</em>".</p>
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<div id="gpt-ad-Instream_Video">For years, the various regulators have aimed to consolidate the Philippines' highly fragmented banking sector comprising mostly small rural lenders. Such inefficiencies have led to nine problematic banks being shut this year, including BSP's recent order to close United People’s Rural Bank Inc.</div>
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<div>The accord was also promulgated after the BSP stopped accepting digital banking license applications from 1 September 2021, with the number of digital lenders expected to be capped at seven for the next three years.</div>
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<div>The question is: who stands to benefit from this MCA streamlining?</div>
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<div><em>For more on M&amp;A in the Philippines, please see the <a href="https://www.smartkarma.com/insights/quiddity-philippines-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:31122" rel="noopener">Quiddity Philippines M&amp;A Guide 2019</a>. </em></div>
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On the 5 November, Bangko Sentral ng Pilipinas (BSP - the central bank of the Philippines), the Securities and Exchange Commission, Philippine Competition Commission (PCC), Philippine Deposit Insurance Corp, and the Cooperative Development Authority signed a multi-agency agreement to streamline the merger, consolidation, and acquisition (MCA) process to encourage consolidation in the banking sector.
BSP Governor Benjamin Diokno said the agreement "aims to streamline processes, reduce processing time, and facilitate prompt action of applications for mergers, consolidations, and acquisitions". PCC's Arsenio Balisacan added: "We acknowledge that mergers, consolidations, and acquisitions can catalyse innovation in any industry, including banking, because of combined resources and expertise". 
The agreement, in effect, harmonizes the paperwork across the various regulators, by reducing the number of documentary requirements to 30 from 58, which in turn lowers the total processing time to an expected 55 business days from an average of 160 business days currently.
According to the PCC, the "Implementing Guidelines on the procedures for MCA applications will subsequently be issued via a Joint Circular by the partner-agencies".

For years, the various regulators have aimed to consolidate the Philippines' highly fragmented banking sector comprising mostly small rural lenders. Such inefficiencies have led to nine problematic banks being shut this year, including BSP's recent order to close United People’s Rural Bank Inc.

The accord was also promulgated after the BSP stopped accepting digital banking license applications from 1 September 2021, with the number of digital lenders expected to be capped at seven for the next three years.


The question is: who stands to benefit from this MCA streamlining?




For more on M&amp;A in the Philippines, please see the Quiddity Philippines M&amp;A Guide 2019. 





Synergy Grid & Development Philippines / Equity Capital Markets

<div>
<p>Synergy Grid &amp; Development Phils (SGP) raised around US$250m in its Philippines re-IPO. </p>
</div>
<div>
<p>We covered most aspects of the deal in our earlier notes, <a href="https://www.smartkarma.com/insights/synergy-grid-development-re-ipo-deal-background-and-positives" target="_blank" rel="noopener">Synergy Grid &amp; Development Re-IPO - Deal Background and Positives</a> and <a href="https://www.smartkarma.com/insights/synergy-grid-development-re-ipo-negatives-and-a-look-at-valuation" target="_blank" rel="noopener">Synergy Grid &amp; Development Re-IPO - Negatives and a Look at Valuation</a>.</p>
</div>
<p> In this note, we will talk about the updates since our IPO note.</p>


Synergy Grid &amp; Development Phils (SGP) raised around US$250m in its Philippines re-IPO. 


We covered most aspects of the deal in our earlier notes, Synergy Grid &amp; Development Re-IPO - Deal Background and Positives and Synergy Grid &amp; Development Re-IPO - Negatives and a Look at Valuation.

 In this note, we will talk about the updates since our IPO note.

Synergy Grid Re-IPO Trading - Pricing Is OK, Watch Out for the Large Drop on Trading Resumption

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

Bank of the Philippine Islands / Equity Bottom-Up

<p><strong><em>*</em></strong><strong><em>Credit Leverage On Its Way: </em></strong>Bank of the Philippine Islands (BPI.PM) [BPI] reported 3Q21 results of PHP 5.7 bn, declining PHP 1.1 bn (16.6%) linked quarter. While results were down linked quarter, what impressed us most was how well controlled credit metrics appear to be; and</p><p><strong><em>*Significant Credit Improvement: </em></strong>Our net new NPL figure of PHP 152 mn or 1.5% annualized (65.4% at 4Q20) intimate that management may actually be on to something. Given where BPI and the Philippines are with credit, it would not surprise us in the least if BPI reverses loss reserves.</p>

*Credit Leverage On Its Way: Bank of the Philippine Islands (BPI.PM) [BPI] reported 3Q21 results of PHP 5.7 bn, declining PHP 1.1 bn (16.6%) linked quarter. While results were down linked quarter, what impressed us most was how well controlled credit metrics appear to be; and*Significant Credit Improvement: Our net new NPL figure of PHP 152 mn or 1.5% annualized (65.4% at 4Q20) intimate that management may actually be on to something. Given where BPI and the Philippines are with credit, it would not surprise us in the least if BPI reverses loss reserves.

Bank Of Philippine Islands – Asia’s Top Performer

<div><p>Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. </p></div><div><p>The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.</p></div><div>
<p>NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.</p>
<p>We covered the positive aspects of the deal in our earlier note, <a href="https://www.smartkarma.com/insights/synergy-grid-development-re-ipo-deal-background-and-positives" target="_blank" rel="noopener">Synergy Grid &amp; Development Re-IPO - Deal Background and Positives</a>.</p>
</div><div><p>In this note, we will talk about the not so positive aspects and valuation.</p></div>

Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.
NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.
We covered the positive aspects of the deal in our earlier note, Synergy Grid &amp; Development Re-IPO - Deal Background and Positives.
In this note, we will talk about the not so positive aspects and valuation.

Synergy Grid & Development Re-IPO - Negatives and a Look at Valuation

Philippines

BDO Unibank Inc provides banking services. The Bank offers saving accounts, investment, loans, credit and debit cards, remittance, insurance, and trade financing services. BDO Unibank serves customers in Philippines.

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BDO Unibank Inc (BDO PM)

Philippine Banks: Streamlining M&A

MBT PM's given its conservative approach during Covid has improved its overall asset quality, plus it has the highest NPL coverage among the top...

David Blennerhassett

Synergy Grid Re-IPO Trading - Pricing Is OK, Watch Out for the Large Drop on Trading Resumption

Synergy Grid & Development Phils raised around US$250m in its Philippines re-IPO. We covered most aspects of the deal in our earlier notes. In...

Sumeet Singh

Bank Of Philippine Islands – Asia’s Top Performer

BANK OF PHILIPPINE ISLANDS: BPI reported QOQ 3Q21 results declined 16.6%. What impressed us most was how well controlled credit metrics are. It...

Thomas J. Monaco

Synergy Grid & Development Re-IPO - Negatives and a Look at Valuation

Synergy Grid & Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. SGP indirectly controls over 60% of National...

Sumeet Singh

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