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.

Equity Capital Markets

Home Consortium Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/home-consortium-ltd" target="_blank" data-smartkarma-citation="entities:29082:1" rel="noopener">Home Consortium Ltd (HMC AU)</a> is looking to raise A$300m (US$199m) to partially fund its acquisition of Global Switch Australia.</li>
<li>The deal appears well flagged with the firm having previously mentioned that it was eyeing data center acquisitions in its recent press release/earnings update. </li>
<li>In this note, we'll run the deal through our ECM framework and comment on deal dynamics.</li>
</ul>



Home Consortium Ltd (HMC AU) is looking to raise A$300m (US$199m) to partially fund its acquisition of Global Switch Australia.
The deal appears well flagged with the firm having previously mentioned that it was eyeing data center acquisitions in its recent press release/earnings update. 
In this note, we'll run the deal through our ECM framework and comment on deal dynamics.


HMC Capital Placement - Well-Flagged Acquisition, Recent Momentum Has Been Strong as Well

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The review period for the September rebalance ends on 30 August. We do not see any constituent changes for the index but there will be capping changes.</li>
<li>
<a href="https://www.smartkarma.com/entities/home-consortium-ltd" target="_blank" data-smartkarma-citation="entities:29082:1" rel="noopener">Home Consortium Ltd (HMC AU)</a> is just outside inclusion zone at the moment and outperformance over the rest of the week could result in inclusion.</li>
<li>
<a href="https://www.smartkarma.com/entities/home-consortium-ltd" target="_blank" data-smartkarma-citation="entities:29082:1" rel="noopener">Home Consortium Ltd (HMC AU)</a>'s inclusion and capping changes will result in a one-way turnover of 5% and in a round-trip trade of A$62m. </li>
</ul>


The review period for the September rebalance ends on 30 August. We do not see any constituent changes for the index but there will be capping changes.

Home Consortium Ltd (HMC AU) is just outside inclusion zone at the moment and outperformance over the rest of the week could result in inclusion.

Home Consortium Ltd (HMC AU)'s inclusion and capping changes will result in a one-way turnover of 5% and in a round-trip trade of A$62m. 


MV Australia A-REITs Index Rebalance Preview: One Close Add & Capping Changes

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The S&amp;P/ASX A-REIT 200 Index has returned -22% in FY22, underperforming the ASX 200 Index by ~17% basis points.</li>
<li>REIT performance is typically negatively correlated with bond yield movements, however, long-dated government bond yields <em>may</em> be approaching their peak.</li>
<li>The asset deflation bear market in FY22 has improved the REIT valuation. A basket of REITs is currently at 0.8x, versus the five-year average of 1.05x, and 1.1x pre-Covid. </li>
</ul>


The S&amp;P/ASX A-REIT 200 Index has returned -22% in FY22, underperforming the ASX 200 Index by ~17% basis points.
REIT performance is typically negatively correlated with bond yield movements, however, long-dated government bond yields may be approaching their peak.
The asset deflation bear market in FY22 has improved the REIT valuation. A basket of REITs is currently at 0.8x, versus the five-year average of 1.05x, and 1.1x pre-Covid. 


Australia REITs:  Asset Deflation Bear Market

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the live IPOs front,  the previous week so a record number of large IPO listing for 2024, with listings in Inida, Hong Kong</li>
<li>On the placements front, there were deals in Singapore, Hong Kong and Australia over the past week.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the live IPOs front,  the previous week so a record number of large IPO listing for 2024, with listings in Inida, Hong Kong
On the placements front, there were deals in Singapore, Hong Kong and Australia over the past week.


ECM Weekly (28th Oct 2024) - Tokyo Metro, CR Beverage, Horizon, Hyundai, Rigaku, Pony AI, TS Lines

<ul>
<li>The review period for the June rebalance ended last week. There could be one deletion from the index and a bunch of capping changes.</li>
<li>There is one stock that is close to inclusion zone but may not make it in June.</li>
<li>The expected index changes will lead to a one-way turnover of 2.5% resulting in a one-way trade of A$14m. That will increase if there is an inclusion.</li>
</ul>


The review period for the June rebalance ended last week. There could be one deletion from the index and a bunch of capping changes.
There is one stock that is close to inclusion zone but may not make it in June.
The expected index changes will lead to a one-way turnover of 2.5% resulting in a one-way trade of A$14m. That will increase if there is an inclusion.


MV Australia A-REITs Index Rebalance Preview: ASK May Be Deleted; HMC Close Add; Capping Changes

Australia

Home Consortium provides real estate services. The Company offers leasing and development of properties. Home Consortium serves customers in Australia.

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Home Consortium Ltd (HMC AU)

HMC Capital Placement - Well-Flagged Acquisition, Recent Momentum Has Been Strong as Well

Home Consortium Ltd (HMC AU) is looking to raise A$300m (US$199m) to partially fund its acquisition of Global Switch Australia. In this note, we'll...

Clarence Chu

MV Australia A-REITs Index Rebalance Preview: One Close Add & Capping Changes

No constituent changes expected for now. HMC is a very close add and needs to outperform over the next 3 trading days to make it into the index....

Brian Freitas

Australia REITs: Asset Deflation Bear Market

The asset deflation bear market in FY22 has improved the overall REIT valuation. A basket of REITs is currently at 0.8x, versus the five-year...

David Blennerhassett

ECM Weekly (28th Oct 2024) - Tokyo Metro, CR Beverage, Horizon, Hyundai, Rigaku, Pony AI, TS Lines

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

MV Australia A-REITs Index Rebalance Preview: ASK May Be Deleted; HMC Close Add; Capping Changes

ASK could be deleted. HMC is unlikely to be added. There are a few capping changes. Shorts have been increasing in Dexus and CHC.

Brian Freitas

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