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.

Equity Capital Markets

99 Speed Mart Retail Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/99-speed-mart-retail-holdings" target="_blank" data-smartkarma-citation="entities:40977:1" rel="noopener">99 Speed Mart Retail Holdings (99SPD MK)</a>, a leading grocery retailer in Malaysia, is seeking to raise US$530 million at RM1.65 per share.</li>
<li>In <em><strong><a href="https://www.smartkarma.com/insights/99-speed-mart-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:156002" rel="noopener">99 Speed Mart IPO: The Bull Case</a></strong></em>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The bear case rests on lacklustre outlet KPIs, indications of margin pressure, significant pre-IPO dividends and a significant secondary offering.</li>
</ul>



99 Speed Mart Retail Holdings (99SPD MK), a leading grocery retailer in Malaysia, is seeking to raise US$530 million at RM1.65 per share.
In 99 Speed Mart IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on lacklustre outlet KPIs, indications of margin pressure, significant pre-IPO dividends and a significant secondary offering.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/99-speed-mart-retail-holdings" target="_blank" data-smartkarma-citation="entities:40977:1" rel="noopener">99 Speed Mart Retail Holdings (99SPD MK)</a>, a leading groceries retailer in Malaysia, is seeking to raise US$530 million at RM1.65 per share.    </li>
<li>99 Speed Mart is Malaysia's largest mini-market player and leading grocery retailer, holding a market share of 40.1% and 11.6% in 2023, respectively. </li>
<li>The bull case rests on a large TAM, rising market share, robust revenue growth underpinned by SSSG, a store expansion-driven growth strategy, profitability, cash generation, and modest leverage.   </li>
</ul>



99 Speed Mart Retail Holdings (99SPD MK), a leading groceries retailer in Malaysia, is seeking to raise US$530 million at RM1.65 per share.    
99 Speed Mart is Malaysia's largest mini-market player and leading grocery retailer, holding a market share of 40.1% and 11.6% in 2023, respectively. 
The bull case rests on a large TAM, rising market share, robust revenue growth underpinned by SSSG, a store expansion-driven growth strategy, profitability, cash generation, and modest leverage.   


Event-Driven

<ul>
<li>The independent advisor considers <a href="https://www.smartkarma.com/entities/fraser-neave-holdings-bhd" target="_blank" data-smartkarma-citation="entities:7742:1" rel="noopener">Fraser &amp; Neave Holdings (FNH MK)</a>'s RM1.50 offer for <a href="https://www.smartkarma.com/entities/cocoaland-holdings-bhd" target="_blank" data-smartkarma-citation="entities:493:1" rel="noopener">Cocoaland Holdings (COLA MK)</a> fair as it falls within its valuation range of RM1.21-1.66 per share.</li>
<li>The key conditions are the headcount test and &lt;10% rejection from all disinterested shareholders. The shareholder with a blocking stake has provided an irrevocable. </li>
<li>We continue to think that offer is attractive. At the last close and for the end of October payment date, the gross and annualised spread is 1.4% and 4.8%, respectively.</li>
</ul>


The independent advisor considers Fraser &amp; Neave Holdings (FNH MK)'s RM1.50 offer for Cocoaland Holdings (COLA MK) fair as it falls within its valuation range of RM1.21-1.66 per share.
The key conditions are the headcount test and &lt;10% rejection from all disinterested shareholders. The shareholder with a blocking stake has provided an irrevocable. 
We continue to think that offer is attractive. At the last close and for the end of October payment date, the gross and annualised spread is 1.4% and 4.8%, respectively.


Cocoaland’s Court Meeting on 18 August, IA’s Opinion

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cocoaland-holdings-bhd" target="_blank" data-smartkarma-citation="entities:493:1" rel="noopener">Cocoaland Holdings (COLA MK)</a> announced a privatisation offer from <a href="https://www.smartkarma.com/entities/fraser-neave-holdings-bhd" target="_blank" data-smartkarma-citation="entities:7742:1" rel="noopener">Fraser &amp; Neave Holdings (FNH MK)</a> at RM1.50 per share, a 26.1% premium to the undisturbed price.</li>
<li>The key conditions are the headcount test and &lt;10% rejection from all disinterested shareholders. The shareholder (Leverage Success) with a blocking stake has provided an irrevocable.</li>
<li>The offer is attractive in comparison to long-term historical share prices and multiples. The Board must respond by no later than 5 pm on 17 June.</li>
</ul>



Cocoaland Holdings (COLA MK) announced a privatisation offer from Fraser &amp; Neave Holdings (FNH MK) at RM1.50 per share, a 26.1% premium to the undisturbed price.
The key conditions are the headcount test and &lt;10% rejection from all disinterested shareholders. The shareholder (Leverage Success) with a blocking stake has provided an irrevocable.
The offer is attractive in comparison to long-term historical share prices and multiples. The Board must respond by no later than 5 pm on 17 June.


Cocoaland’s RM1.50 Per Share Privatisation Offer from Fraser & Neave

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/farm-fresh-berhad" target="_blank" data-smartkarma-citation="entities:34617:1" rel="noopener">Farm Fresh Berhad (FF MY)</a> raised around US$239m in its Malaysia IPO. </li>
<li>In our view, the firm’s stronger margins and better growth potential warrants a premium to its other domestic peers.</li>
<li>In this note, we will talk about the updates since then and the trading dynamics.</li>
</ul>



Farm Fresh Berhad (FF MY) raised around US$239m in its Malaysia IPO. 
In our view, the firm’s stronger margins and better growth potential warrants a premium to its other domestic peers.
In this note, we will talk about the updates since then and the trading dynamics.


Farm Fresh IPO Trading - Solid Subscription, Should Come in at a Premium to Domestic Peers

Malaysia

Dutch Lady Milk Industries Berhad manufactures sweetened condensed milk, milk powder, dairy products, and fruit juice drinks.

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Dutch Lady Milk Inds (DLM MK)

99 Speed Mart IPO: The Bear Case

The bear case rests on lacklustre outlet KPIs, indications of margin pressure, significant pre-IPO dividends and a significant secondary offering.

Arun George

99 Speed Mart IPO: The Bull Case

The bull case rests on a large TAM, rising market share, robust revenue growth underpinned by SSSG, a store expansion-driven growth strategy,...

Arun George

Cocoaland’s Court Meeting on 18 August, IA’s Opinion

The IA considers the RM1.50 offer fair and reasonable. At last close and for an end of October payment date, the gross and annualised spread is...

Arun George

Farm Fresh IPO Trading - Solid Subscription, Should Come in at a Premium to Domestic Peers

Farm Fresh Berhad (FF MY) raised around US$239m in its Malaysia IPO. In our view, the firm’s stronger margins and better growth potential warrants...

Clarence Chu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

99 Speed Mart IPO: The Bear Case

The bear case rests on lacklustre outlet KPIs, indications of margin pressure, significant pre-IPO dividends and a significant secondary offering.

Arun George

99 Speed Mart IPO: The Bull Case

The bull case rests on a large TAM, rising market share, robust revenue growth underpinned by SSSG, a store expansion-driven growth strategy,...

Arun George

Cocoaland’s Court Meeting on 18 August, IA’s Opinion

The IA considers the RM1.50 offer fair and reasonable. At last close and for an end of October payment date, the gross and annualised spread is...

Arun George

Cocoaland’s RM1.50 Per Share Privatisation Offer from Fraser & Neave

The offer is attractive in comparison to long-term historical share prices and multiples. At the last close, the gross spread to the offer price is...

Arun George

Farm Fresh IPO Trading - Solid Subscription, Should Come in at a Premium to Domestic Peers

Farm Fresh Berhad (FF MY) raised around US$239m in its Malaysia IPO. In our view, the firm’s stronger margins and better growth potential warrants...

Clarence Chu