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/kingston-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:3566:1" rel="noopener">Kingston Financial (1031 HK)</a> announced a privatisation offer from Mrs Chu, the controlling shareholder, at HK$0.30 per share, a 47.8% premium to the undisturbed price. The offer price is final.</li>
<li>Key conditions include approval by at least 75% of disinterested shareholders (&lt;10% of disinterested shareholders rejection) and the headcount test. No shareholder holds a blocking stake.</li>
<li>The offer is light and the offeror is betting that the grim market conditions will sway the headcount test in its favour. Scheme document despatched by 21 December. </li>
</ul>



Kingston Financial (1031 HK) announced a privatisation offer from Mrs Chu, the controlling shareholder, at HK$0.30 per share, a 47.8% premium to the undisturbed price. The offer price is final.
Key conditions include approval by at least 75% of disinterested shareholders (&lt;10% of disinterested shareholders rejection) and the headcount test. No shareholder holds a blocking stake.
The offer is light and the offeror is betting that the grim market conditions will sway the headcount test in its favour. Scheme document despatched by 21 December. 


Kingston Financial’s HK$0.30 Privatisation Bid from Mrs Chu

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 analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 130.2% as of Oct 14th.</li>
<li>The average A-H premium changed by 5.3ppt weeok on week, led by information technology, real estate, materials and offset by communication services, energy.</li>
<li>We highlight weekly changes in A-H premium for CMB, China Pacific, Remegen, Tigermed, Shanghai Fudan, YOFC, GWM, CGS.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 130.2% as of Oct 14th.
The average A-H premium changed by 5.3ppt weeok on week, led by information technology, real estate, materials and offset by communication services, energy.
We highlight weekly changes in A-H premium for CMB, China Pacific, Remegen, Tigermed, Shanghai Fudan, YOFC, GWM, CGS.


A-H Premium Weekly (Oct 14th): CMB, China Pacific, Remegen, Tigermed, Shanghai Fudan, YOFC, GWM, CGS

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kingston-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:3566:1" rel="noopener">Kingston Financial (1031 HK)</a> entered a trading halt pending an announcement under the Hong Kong Code on Takeovers and Mergers on 14 October. The shares are at all-time lows. </li>
<li>It is likely that Pollyanna Chu Yuet Wah (CEO and co-founder), the largest shareholder representing 75.61% of ordinary shares (80.09% of diluted shares), is seeking to privatise Kingston.</li>
<li>As privatisation through a Bermuda scheme involves the headcount test, a decent premium is required - an offer at the 1-year average price of HK$0.33 implies a 63% premium.</li>
</ul>



Kingston Financial (1031 HK) entered a trading halt pending an announcement under the Hong Kong Code on Takeovers and Mergers on 14 October. The shares are at all-time lows. 
It is likely that Pollyanna Chu Yuet Wah (CEO and co-founder), the largest shareholder representing 75.61% of ordinary shares (80.09% of diluted shares), is seeking to privatise Kingston.
As privatisation through a Bermuda scheme involves the headcount test, a decent premium is required - an offer at the 1-year average price of HK$0.33 implies a 63% premium.


Kingston’s All-Time Lows to Draw an Offer from Mrs Chu?

<ul>
<li>We analyze the monthly Hong Kong Connect flows with our data engine for the month of September.</li>
<li>We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.</li>
<li>We highlight inflows into Tencent, Wuxi Biologics, China Mobile, CNOOC, BYD and outflows from Geely, Sunny Optical, Kuaishou, HKEx.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine for the month of September.
We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.
We highlight inflows into Tencent, Wuxi Biologics, China Mobile, CNOOC, BYD and outflows from Geely, Sunny Optical, Kuaishou, HKEx.


Hong Kong Connect Flows Monthly: $4.4bn Inflows in September

<ul>
<li>We analyse the changes of A/H premium on 140 stocks over the last week.</li>
<li>A-H premium increased by 1.2ppt last week, led by the information technology and financials and offset by the consumer discretionary and real estate.</li>
<li>We highlight A-H premium increases for Huadian Power, CGS, YOFC, CICC, and Great Wall Motor.</li>
</ul>


We analyse the changes of A/H premium on 140 stocks over the last week.
A-H premium increased by 1.2ppt last week, led by the information technology and financials and offset by the consumer discretionary and real estate.
We highlight A-H premium increases for Huadian Power, CGS, YOFC, CICC, and Great Wall Motor.


A-H Premium Weekly: Huadian Power, CGS, YOFC, CICC, and Great Wall Motor

China

China Galaxy Securities Co., Ltd. provides securities services. The Company provides securities underwriting, securities brokerage, securities investment advisory, securities transaction, and other services. China Galaxy Securities provides its services throughout China.

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China Galaxy Securities (H) (6881 HK)

Kingston Financial’s HK$0.30 Privatisation Bid from Mrs Chu

The key risk is the headcount test. Despite the large premium, the offer is underwhelming to peer multiples and historical share prices. A 60% deal...

Arun George

A-H Premium Weekly (Oct 14th): CMB, China Pacific, Remegen, Tigermed, Shanghai Fudan, YOFC, GWM, CGS

We analyzed A-H premium changes in the past week and highlight A-H premium changes for CMB, China Pacific, Remegen, Tigermed, Shanghai Fudan, YOFC,...

Ke Yan, CFA, FRM

Kingston’s All-Time Lows to Draw an Offer from Mrs Chu?

Mrs Chu (CEO and co-founder) is likely seeking to privatise Kingston. A decent premium is required as privatisation through a Bermuda scheme (most...

Arun George

Hong Kong Connect Flows Monthly: $4.4bn Inflows in September

We analyzed the Shanghai/Shenzhen Connect Scheme for September and highlight flows for Tencent, Wuxi Biologics, China Mobile, CNOOC, BYD and...

Ke Yan, CFA, FRM

A-H Premium Weekly: Huadian Power, CGS, YOFC, CICC, and Great Wall Motor

A-H premium increased by 1.2ppt last week. We highlight A-H premium increases for Huadian Power, CGS, YOFC, CICC, and Great Wall Motor.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)