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

Soilbuild Business Space REIT / Event-Driven

<p><a href="https://www.smartkarma.com/entities/soilbuild-business-space-reit" target="_blank" data-smartkarma-citation="entities:13446:1" rel="noopener">Soilbuild Business Space REIT (SBREIT SP)</a> has announced a privatisation offer from Mr Lim Chap Huat (executive Chairman) and <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group LP (BX US)</a> at S$0.55 cash per unit. The privatisation price is a premium of 8% to the last close price of S$0.51 per unit (8 December prior to the trading halt) and a 27.9% to the unaffected price of S$0.430 per unit (31 August 2020 prior to the announcement of a possible transaction involving Mr Lim Chap Huat’s stake). The effective date for the trust scheme meeting is targeted for the end of March 2021 with delisting in early April 2021. </p><div class="content-highlight"><p>SB REIT faces challenging market conditions due to the fallout from the COVID-19 pandemic. A combination of high DPU yield and limited debt headroom is a constraint to driving growth through DPU accretive acquisitions. Over the past few years, SB REIT’s sponsor has received several privatisation proposals and the current offer is the highest offer price received to date. Overall, while the bid is not a knockout bid particularly for long-term unitholders, we think that a reasonable offer (offer values SB REIT broadly in line with its latest adjusted NAV) makes it likely that the offer succeeds. </p></div>

Soilbuild Business Space REIT (SBREIT SP) has announced a privatisation offer from Mr Lim Chap Huat (executive Chairman) and Blackstone Group LP (BX US) at S$0.55 cash per unit. The privatisation price is a premium of 8% to the last close price of S$0.51 per unit (8 December prior to the trading halt) and a 27.9% to the unaffected price of S$0.430 per unit (31 August 2020 prior to the announcement of a possible transaction involving Mr Lim Chap Huat’s stake). The effective date for the trust scheme meeting is targeted for the end of March 2021 with delisting in early April 2021. SB REIT faces challenging market conditions due to the fallout from the COVID-19 pandemic. A combination of high DPU yield and limited debt headroom is a constraint to driving growth through DPU accretive acquisitions. Over the past few years, SB REIT’s sponsor has received several privatisation proposals and the current offer is the highest offer price received to date. Overall, while the bid is not a knockout bid particularly for long-term unitholders, we think that a reasonable offer (offer values SB REIT broadly in line with its latest adjusted NAV) makes it likely that the offer succeeds. 

Soilbuild Business Space REIT’s Privatisation Bid

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

Embassy Office Parks REIT / Equity Capital Markets

<section><div id="ember1549">
<div><p><a href="https://www.smartkarma.com/entities/embassy-office-parks-reit" target="_blank" data-smartkarma-citation="entities:27925:1" rel="noopener">Embassy Office Parks REIT (EOP IN) </a> plans to acquire assets worth US$1.3bn, and aims to fund part of the purchase via a US$500m institutional placement, later in the year.  </p></div>
<div><p>The stock was listed in Apr 2019 and we have covered the listing and previous placement as well, links for which are below: </p></div>
<div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-good-assets-but-projections-might-be-a-tad-too-bullish" target="_blank" rel="noopener">Embassy Office Parks REIT - Good Assets but Projections Might Be a Tad Too Bullish</a></li>
<li>
<a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-comparison-with-ait-and-a-look-at-the-required-yield" target="_blank" rel="noopener">Embassy Office Parks REIT - Comparison with AIT and a Look at the Required Yield</a>, and</li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-ipo-fy19-revised-down-yield-propped-up-by-zero-coupon-bond" target="_blank" rel="noopener">Embassy Office Parks REIT IPO - FY19 Revised Down, Yield Propped up by Zero Coupon Bond</a></li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-trading-update-lowest-volume-traded-for-any-indian-listing-since-2018" target="_blank" rel="noopener">Embassy Office Parks REIT Trading Update - Lowest Volume Traded for Any Indian Listing Since 2018</a></li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-placement-to-big-to-swallow-if-its-not-a-reverse-enquiry" target="_blank" rel="noopener">Embassy Office Parks REIT Placement - To Big to Swallow if Its Not a Reverse Enquiry</a></li>
</ul></div>
</div></section><p>In this insight, I'll take an early look at the deal.</p>


Embassy Office Parks REIT (EOP IN)  plans to acquire assets worth US$1.3bn, and aims to fund part of the purchase via a US$500m institutional placement, later in the year.  
The stock was listed in Apr 2019 and we have covered the listing and previous placement as well, links for which are below: 

Embassy Office Parks REIT - Good Assets but Projections Might Be a Tad Too Bullish

Embassy Office Parks REIT - Comparison with AIT and a Look at the Required Yield, and
Embassy Office Parks REIT IPO - FY19 Revised Down, Yield Propped up by Zero Coupon Bond
Embassy Office Parks REIT Trading Update - Lowest Volume Traded for Any Indian Listing Since 2018
Embassy Office Parks REIT Placement - To Big to Swallow if Its Not a Reverse Enquiry

In this insight, I'll take an early look at the deal.

Embassy Office Parks REIT Placement - Early Look - Big Deal but Will Come with Ample Warning

Alpha-Centric ESG Research

Kyle Rudden

<p>This Insight is a relatively brief, high-level overview of the sustainability framework ecosystem. It will be followed (soon) by deeper dives into individual frameworks, starting with the "Big Three."</p><ol>
<li>
<strong>UN Sustainable Development Goals</strong> (SDGs), a framework for society-level sustainability</li>
<li>
<strong>Global Reporting Initiative</strong> (GRI), a company-level framework for a very broad audience</li>
<li>
<strong>Sustainability Accounting Standards Board</strong> (SASB), company-level but investor-focused</li>
</ol><p>These Insights aren't merely an academic exercise.</p><p>They will have educational value vis-à-vis sustainable/ESG investing, but their primary purpose is as context for upcoming reports on integrating the SDGs into ESG investing strategies, such as:</p><ul>
<li>
<strong>ESG Alpha:</strong> Mapping country-level SDG data to securities since larger diversified portfolios are often impacted by SDG outcomes; SDGS serving as a barometer for macro risk and alpha.</li>
<li>
<strong>ESG Impact:</strong> Mapping security-level ESG performance (based on GRI and SASB standards) to the SDGs, guiding securities selection in a way that enhances a portfolio's societal impact.</li>
</ul><p>After explaining key concepts like global sustainability, sustainable development, and the Triple Bottom Line – all prerequisites to the framework stuff – the report roughly takes this outline:</p><ul>
<li>Overview of the sustainable investing spectrum and relative prioritsation of alpha and impact</li>
<li>Bird's-eye view of the overall sustainability/ESG ecosystem (framework, standards, and other)</li>
<li>Quick sight-seeing sojourn to look at the handful of listed companies dotting this landscape</li>
<li>Final destination, an overview of the "Big Three" and other major sustainability frameworks</li>
</ul>

This Insight is a relatively brief, high-level overview of the sustainability framework ecosystem. It will be followed (soon) by deeper dives into individual frameworks, starting with the "Big Three."

UN Sustainable Development Goals (SDGs), a framework for society-level sustainability

Global Reporting Initiative (GRI), a company-level framework for a very broad audience

Sustainability Accounting Standards Board (SASB), company-level but investor-focused
These Insights aren't merely an academic exercise.They will have educational value vis-à-vis sustainable/ESG investing, but their primary purpose is as context for upcoming reports on integrating the SDGs into ESG investing strategies, such as:

ESG Alpha: Mapping country-level SDG data to securities since larger diversified portfolios are often impacted by SDG outcomes; SDGS serving as a barometer for macro risk and alpha.

ESG Impact: Mapping security-level ESG performance (based on GRI and SASB standards) to the SDGs, guiding securities selection in a way that enhances a portfolio's societal impact.
After explaining key concepts like global sustainability, sustainable development, and the Triple Bottom Line – all prerequisites to the framework stuff – the report roughly takes this outline:
Overview of the sustainable investing spectrum and relative prioritsation of alpha and impact
Bird's-eye view of the overall sustainability/ESG ecosystem (framework, standards, and other)
Quick sight-seeing sojourn to look at the handful of listed companies dotting this landscape
Final destination, an overview of the "Big Three" and other major sustainability frameworks


<p>Blackstone aims to raise around US$260m via selling 7.2% of <a href="https://www.smartkarma.com/entities/embassy-office-parks-reit" target="_blank" data-smartkarma-citation="entities:27925:1" rel="noopener">Embassy Office Parks REIT (EOP IN)</a>. </p><p>The stock was listed in Apr 2019 and had covered the listing extensively. Links to the IPO insights: </p><div>
<ul>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-good-assets-but-projections-might-be-a-tad-too-bullish" target="_blank" rel="noopener">Embassy Office Parks REIT - Good Assets but Projections Might Be a Tad Too Bullish</a></li>
<li>
<a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-comparison-with-ait-and-a-look-at-the-required-yield" target="_blank" rel="noopener">Embassy Office Parks REIT - Comparison with AIT and a Look at the Required Yield</a>, and</li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-ipo-fy19-revised-down-yield-propped-up-by-zero-coupon-bond" target="_blank" rel="noopener">Embassy Office Parks REIT IPO - FY19 Revised Down, Yield Propped up by Zero Coupon Bond</a></li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-trading-update-lowest-volume-traded-for-any-indian-listing-since-2018" target="_blank" rel="noopener">Embassy Office Parks REIT Trading Update - Lowest Volume Traded for Any Indian Listing Since 2018</a></li>
</ul>
<p>In this insight, I'll talk about the deal dynamics and run the deal through our ECM framework.</p>
</div>

Blackstone aims to raise around US$260m via selling 7.2% of Embassy Office Parks REIT (EOP IN). The stock was listed in Apr 2019 and had covered the listing extensively. Links to the IPO insights: 

Embassy Office Parks REIT - Good Assets but Projections Might Be a Tad Too Bullish

Embassy Office Parks REIT - Comparison with AIT and a Look at the Required Yield, and
Embassy Office Parks REIT IPO - FY19 Revised Down, Yield Propped up by Zero Coupon Bond
Embassy Office Parks REIT Trading Update - Lowest Volume Traded for Any Indian Listing Since 2018

In this insight, I'll talk about the deal dynamics and run the deal through our ECM framework.


Embassy Office Parks REIT Placement - To Big to Swallow if Its Not a Reverse Enquiry

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

Thematic (Sector/Industry)

<ul>
<li>
<em><strong>Increasing Systemic Risks:</strong></em>Events are moving quickly and the fluidity of this pandemic has created a destructive amount of market volatility, which likely is the new normal given issues Quant Funds, illiquidity, the lack of US preparation and global leadership, and the corporate bond market are all becoming systemic risks.</li>
<li> <em><strong>Global Recession Already Underway:</strong></em> A global recession is already well underway, which should worsen given how much this pandemic is having on consumer confidence.  </li>
<li><p><em><strong>Financial Stability Called Into Question:</strong></em>The global market rout is calling financial stability into question. This crisis of confidence and increased likelihood of waterfall of losses that will make for a VERY toxic cocktail – especially considering that many names are still not profitable on an operating basis.   </p></li>
</ul>



Increasing Systemic Risks:Events are moving quickly and the fluidity of this pandemic has created a destructive amount of market volatility, which likely is the new normal given issues Quant Funds, illiquidity, the lack of US preparation and global leadership, and the corporate bond market are all becoming systemic risks.
 Global Recession Already Underway: A global recession is already well underway, which should worsen given how much this pandemic is having on consumer confidence.  
Financial Stability Called Into Question:The global market rout is calling financial stability into question. This crisis of confidence and increased likelihood of waterfall of losses that will make for a VERY toxic cocktail – especially considering that many names are still not profitable on an operating basis.   


United States

Blackstone Inc. operates as an investment company. The Company focuses on real estate, hedge funds, private equity, leveraged lending, senior debts, and rescue financing. Blackstone serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Blackstone (BX US)

Soilbuild Business Space REIT’s Privatisation Bid

SB REIT announced a privatisation offer from Mr Lim Chap Huat and Blackstone at S$0.55 cash per unit, a 27.9% to the unaffected price of S$0.430...

Arun George

Embassy Office Parks REIT Placement - Early Look - Big Deal but Will Come with Ample Warning

Embassy Office Parks REIT plans to acquire assets worth US$1.3bn, and aims to fund part of the purchase via a US$500m institutional placement,...

Sumeet Singh

Sustainability/ESG Frameworks: Overview

This Insight is a relatively brief, high-level overview of the sustainability framework ecosystem. It will be followed (soon) by deeper dives into...

Kyle Rudden

Embassy Office Parks REIT Placement - To Big to Swallow if Its Not a Reverse Enquiry

Blackstone aims to raise around US$260m via selling 7.2% of Embassy Office Parks REIT (EOP IN). The stock was listed in Apr 2019 and had covered...

Sumeet Singh

Toxic Cocktail

Increasing Systemic Risks:Events are moving quickly and the fluidity of this pandemic has created a destructive amount of market volatility,...

Thomas J. Monaco

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)