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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/infratil-ltd" target="_blank" data-smartkarma-citation="entities:596:1" rel="noopener">Infratil Ltd (IFT NZ)</a> aims to raise around US$613m (NZ$1bn) via an institutional placement.</li>
<li>Proceeds from the placement will be used to fund IFT’s share of capex for its data center arm, CDC.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Infratil Ltd (IFT NZ) aims to raise around US$613m (NZ$1bn) via an institutional placement.
Proceeds from the placement will be used to fund IFT’s share of capex for its data center arm, CDC.
In this note, we will talk about the placement and run the deal through our ECM framework.


Infratil Placement - Riding the AI Wave, but Deal Timing Seems Opportunistic

New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>Infratil (IFT) reported an in-line 1H24 result, with expected strong growth from key portfolio companies CDC and One NZ, which together make up over half of IFT's value.</li><li>FY24 proportionate EBITDA guidance was modestly upgraded without making any meaningful net changes to portfolio company guidance.</li><li>We believe the upgrade primarily relates to increased confidence for IFT that One NZ will deliver towards the upper end of its guidance.</li></ul>

Infratil (IFT) reported an in-line 1H24 result, with expected strong growth from key portfolio companies CDC and One NZ, which together make up over half of IFT's value.FY24 proportionate EBITDA guidance was modestly upgraded without making any meaningful net changes to portfolio company guidance.We believe the upgrade primarily relates to increased confidence for IFT that One NZ will deliver towards the upper end of its guidance.

Infratil - One NZ Delivering Growth but No Cash, Yet

<ul><li>Infratil (IFT) is due to report its 1H24 result on Thursday, 16 November.</li><li>IFT stated at its AGM in August that 1Q24 trading had been strong from its key companies (likely CDC and One NZ), and it gave IFT confidence that FY24 earnings are tracking towards the top end of its guidance range.</li><li>We believe the focus of the result will be on: (1) CDC outlook comments, (2) margin improvement at One NZ, (3) possible independent valuation update of Longroad, (4) interest costs (and 'look through' debt levels). </li></ul>

Infratil (IFT) is due to report its 1H24 result on Thursday, 16 November.IFT stated at its AGM in August that 1Q24 trading had been strong from its key companies (likely CDC and One NZ), and it gave IFT confidence that FY24 earnings are tracking towards the top end of its guidance range.We believe the focus of the result will be on: (1) CDC outlook comments, (2) margin improvement at One NZ, (3) possible independent valuation update of Longroad, (4) interest costs (and 'look through' debt levels). 

Infratil - CDC Outlook and One NZ Margins in Focus

<ul><li>We walk away from Infratil's (IFT) Longroad investor day with three main takeaways. (1) Its target to deliver ~1.5GW annually over the next four to five years seems highly credible.</li><li>Pipeline for 2024 and 2025 is ahead of target and 1.5GW seems more of a choice not to overextend than the stretch target we initially viewed it as.</li><li>(2) On top of the base investment tax credit, Longroad is likely to access a meaningful level of additional credits, which could be worth up to high, single digits, additional IRRs on some projects. </li></ul>

We walk away from Infratil's (IFT) Longroad investor day with three main takeaways. (1) Its target to deliver ~1.5GW annually over the next four to five years seems highly credible.Pipeline for 2024 and 2025 is ahead of target and 1.5GW seems more of a choice not to overextend than the stretch target we initially viewed it as.(2) On top of the base investment tax credit, Longroad is likely to access a meaningful level of additional credits, which could be worth up to high, single digits, additional IRRs on some projects. 

Infratil - The Longroad to Value Realisation Is Heating Up

Auckland Intl Airport / Equity Capital Markets

<ul>
<li>Auckland City Council plans to sell around 4.5% of <a href="https://www.smartkarma.com/entities/auckland-intl-airport-ltd" target="_blank" data-smartkarma-citation="entities:597:1" rel="noopener">Auckland Intl Airport (AIA NZ)</a> to fund its budget requirements for 2023-24.</li>
<li>The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24.
The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Auckland Airport Placement - Well Flagged, LO Support but Still a Bit Tricky

New Zealand

Infratil Limited is an infrastructure investment company. The Company invests in airports, energy such as renewable and waste-energy, and public transportation.

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Infratil Ltd (IFT NZ)

Infratil Placement - Riding the AI Wave, but Deal Timing Seems Opportunistic

Infratil Ltd (IFT NZ) aims to raise around US$613m (NZ$1bn) via an institutional placement. In this note, we talk about the deal dynamics and run...

Sumeet Singh

Infratil - One NZ Delivering Growth but No Cash, Yet

Infratil (IFT) reported an in-line 1H24 result, with expected strong growth from key portfolio companies CDC and One NZ, which together make up...

Forsyth Barr

Infratil - CDC Outlook and One NZ Margins in Focus

We believe the focus of the result will be on: (1) CDC outlook comments, (2) margin improvement at One NZ, (3) possible independent valuation...

Forsyth Barr

Infratil - The Longroad to Value Realisation Is Heating Up

We walk away from Infratil's (IFT) Longroad investor day with three main takeaways. (1) Its target to deliver ~1.5GW annually over the next four to...

Forsyth Barr

Auckland Airport Placement - Well Flagged, LO Support but Still a Bit Tricky

Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24. In this note, we...

Sumeet Singh

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