IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

China Boqi Environmental Hol / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a>'s share buyback is for a minimum of 100.6m shares (10.00% of outstanding shares) and a maximum of 150.9m shares (15.00%) at HK$1.20 per share.</li>
<li>The offer is conditional on satisfying the minimum acceptance condition, approval by the requisite majority of shareholders, and approval of the whitewash waiver. </li>
<li>The offer is attractive compared to peer multiples but unattractive compared to historical trading ranges. The shareholder structure and irrevocable paves the way for the offer to be declared unconditional. </li>
</ul>



China Boqi Environmental Hol (2377 HK)'s share buyback is for a minimum of 100.6m shares (10.00% of outstanding shares) and a maximum of 150.9m shares (15.00%) at HK$1.20 per share.
The offer is conditional on satisfying the minimum acceptance condition, approval by the requisite majority of shareholders, and approval of the whitewash waiver. 
The offer is attractive compared to peer multiples but unattractive compared to historical trading ranges. The shareholder structure and irrevocable paves the way for the offer to be declared unconditional. 


Boqi Environmental (2377 HK): Conditional Share Buyback at HK$1.20

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a> entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. The shares have been up 39% since 30 September. </li>
<li>It is likely that management, representing 59.59% of outstanding shares, is seeking to privatise Boqi through a Cayman scheme. </li>
<li>Sinopec, a pre-IPO investor potentially holding a blocking stake, is likely seeking to exit. At the last close, Boqi trades in line with the median peers’ P/B multiple. </li>
</ul>



China Boqi Environmental Hol (2377 HK) entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. The shares have been up 39% since 30 September. 
It is likely that management, representing 59.59% of outstanding shares, is seeking to privatise Boqi through a Cayman scheme. 
Sinopec, a pre-IPO investor potentially holding a blocking stake, is likely seeking to exit. At the last close, Boqi trades in line with the median peers’ P/B multiple. 


Boqi Environmental (2377 HK): Privatisation by Management?

Guodian Technology & Environment Group / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guodian-technology-environment-group-corp" target="_blank" data-smartkarma-citation="entities:3941:1" rel="noopener">Guodian Technology &amp; Environment Group (1296 HK)</a>'s composite document is out with the H Shareholders’ class meeting on 20 May. The IFA considers the offer to be fair and reasonable. </li>
<li>The key condition for the privatisation is approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition. </li>
<li>The H Shareholder with a blocking stake has provided an irrevocable. For a 9 June payment, the gross and annualised spread to the offer is 1.9% and 19.5%, respectively. </li>
</ul>



Guodian Technology &amp; Environment Group (1296 HK)'s composite document is out with the H Shareholders’ class meeting on 20 May. The IFA considers the offer to be fair and reasonable. 
The key condition for the privatisation is approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition. 
The H Shareholder with a blocking stake has provided an irrevocable. For a 9 June payment, the gross and annualised spread to the offer is 1.9% and 19.5%, respectively. 


Guodian’s H Share Class Meeting on 20 May, IFA Opinion

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guodian-technology-environment-group-corp" target="_blank" data-smartkarma-citation="entities:3941:1" rel="noopener">Guodian Technology &amp; Environment Group (1296 HK)</a>’s privatisation offer from China Energy is HK$1.08 per H share. The pre-condition was fulfilled on 22 April.  </li>
<li>The key conditions for the delisting will be approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition.  </li>
<li>At last close and for a mid-June effective date (composite document despatched by 29 April), the gross and annualised spread to the offer is 2.9% and 19.9%, respectively.</li>
</ul>



Guodian Technology &amp; Environment Group (1296 HK)’s privatisation offer from China Energy is HK$1.08 per H share. The pre-condition was fulfilled on 22 April.  
The key conditions for the delisting will be approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition.  
At last close and for a mid-June effective date (composite document despatched by 29 April), the gross and annualised spread to the offer is 2.9% and 19.9%, respectively.


Guodian Tech’s Offer Risk/Reward – Pre-Condition Satisfied

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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Equity Capital Markets

China Boqi Environmental Hol / Equity Capital Markets

<p>China Boqi Environment is an environmental protection company, raising up to USD116m to list in Hong Kong. Given the small size of the deal and the unattractive industry dynamics, we will make this note brief, covering the background of the company, development of the industry and a look-back of the <a href="https://www.smartkarma.com/entities/23570" target="_blank" data-smartkarma-citation="entities:23570:1">Datang Environment (1272 HK)</a> deal which has returned -26% to-date. We are of the view that there's little to applaud for the deal.</p><h2>Company Background</h2><p>China Boqi Environment is a leading independent…</p>

China Boqi Environment is an environmental protection company, raising up to USD116m to list in Hong Kong. Given the small size of the deal and the unattractive industry dynamics, we will make this note brief, covering the background of the company, development of the industry and a look-back of the Datang Environment (1272 HK) deal which has returned -26% to-date. We are of the view that there's little to applaud for the deal.Company BackgroundChina Boqi Environment is a leading independent…

China Boqi Env IPO: Too Late for the Feast

China

Datang Environment Industry Group Co., Ltd. provides environmental protection and energy conservation services. The Company offers its solutions to the the coal-fire power generation industry to help reduce the emission of pollutants and facilitate in meeting national standards in China.

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Datang Environment (1272 HK)

Boqi Environmental (2377 HK): Privatisation by Management?

Shares have been up 39% since 30 September, likely due to deal news leakage. Management, representing 60% of outstanding shares, is likely seeking...

Arun George

Guodian Tech’s Offer Risk/Reward – Pre-Condition Satisfied

The composite document will be despatched by 29 April. The offer is attractive. At last close and for a mid-June effective date, the annualised...

Arun George

China Boqi Env IPO: Too Late for the Feast

China Boqi Environment is an environmental protection company, raising up to USD116m to list in Hong Kong. Given the small size of the deal and the...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Boqi Environmental (2377 HK): Conditional Share Buyback at HK$1.20

The offer is attractive vs. peer multiples but unattractive vs. historical trading ranges. The shareholder structure and irrevocable paves the way...

Arun George

Boqi Environmental (2377 HK): Privatisation by Management?

Shares have been up 39% since 30 September, likely due to deal news leakage. Management, representing 60% of outstanding shares, is likely seeking...

Arun George

Guodian’s H Share Class Meeting on 20 May, IFA Opinion

The IFA considers the offer to be fair and reasonable. The H Shareholder with a blocking stake provided an irrevocable on 28 Feb. For a 9 June...

Arun George

Guodian Tech’s Offer Risk/Reward – Pre-Condition Satisfied

The composite document will be despatched by 29 April. The offer is attractive. At last close and for a mid-June effective date, the annualised...

Arun George

China Boqi Env IPO: Too Late for the Feast

China Boqi Environment is an environmental protection company, raising up to USD116m to list in Hong Kong. Given the small size of the deal and the...

Ke Yan, CFA, FRM