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

Synergy Grid & Development Philippines / Equity Capital Markets

<div><p>Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. </p></div><div><p>The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.</p></div><div>
<p>NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.</p>
<p>We covered the positive aspects of the deal in our earlier note, <a href="https://www.smartkarma.com/insights/synergy-grid-development-re-ipo-deal-background-and-positives" target="_blank" rel="noopener">Synergy Grid &amp; Development Re-IPO - Deal Background and Positives</a>.</p>
</div><div><p>In this note, we will talk about the not so positive aspects and valuation.</p></div>

Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.
NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.
We covered the positive aspects of the deal in our earlier note, Synergy Grid &amp; Development Re-IPO - Deal Background and Positives.
In this note, we will talk about the not so positive aspects and valuation.

Synergy Grid & Development Re-IPO - Negatives and a Look at Valuation

<p>Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. </p><p>The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.</p><p>NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.</p><p>In this note, we will talk about the deal background and the overall positive aspects of the deal.</p>

Synergy Grid &amp; Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. The company has been listed on the Phil Stock Exchange (PSE) for over a decade but has been more of an empty shell for most of its listed history. SGP’s two main shareholders, Henry Sy, Jr and Robert G. Coyiuto, recently entered into a share swap agreement leading to SGP indirectly controlling over 60% of National Grid Corporation of the Philippines (NGCP). SGP now aims to list at least 20% of its outstanding stock to meet PSE’s free-float requirement, as well as those set out at the time of grant of NGCP concession.NGCP owns the concession rights for 50 years to operate the national power transmission network in the Phils and in that sense it enjoys a monopoly status.In this note, we will talk about the deal background and the overall positive aspects of the deal.

Synergy Grid & Development Re-IPO - Deal Background and Positives

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<p>MREIT, sponsored by Megaworld, raised around US$300m in its Philippines listing. In this note, we will talk about the updates since our IPO note.</p>
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<p>We have looked at MREITs in our earlier notes:</p>
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<p><a href="https://www.smartkarma.com/insights/mreit-pre-ipo-mediocre-performance-convoluted-lease-low-asset-yield" target="_blank" rel="noopener">MREIT Pre-IPO - Mediocre performance, convoluted lease, low asset yield</a></p>
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<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/rl-commercial-reit-and-mreit-peer-comparison-one-is-much-better-shape" target="_blank" rel="noopener">RL Commercial REIT and MREIT Peer Comparison - One Is Much Better Shape</a></li>
</ul>
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<li><a href="https://www.smartkarma.com/insights/mreit-ipo-needs-to-be-priced-a-whole-lot-lower" target="_blank" rel="noopener">MREIT IPO - Needs to Be Priced a Whole Lot Lower</a></li>
</ul>
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<p>Apart from MREIT we have also covered prior listings of the four currently listed REITs in the Philippines:</p>
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<p><a href="https://www.smartkarma.com/insights/filinvest-reit-ipo-almost-like-a-single-asset-reit-covid-hasn-t-been-kind" target="_blank" rel="noopener">Filinvest REIT IPO - Almost like a single asset REIT, COVID hasn’t been kind</a></p>
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<p><a href="https://www.smartkarma.com/insights/ddpm-reit-pre-ipo-brand-new-assets-but-not-with-the-best-of-outlooks" target="_blank" rel="noopener">DDMP REIT Pre-IPO - Brand new assets but not with the best of outlooks</a></p>
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<p><a href="https://www.smartkarma.com/insights/areit-pre-ipo-first-philippines-reit-listing-comes-with-its-peculiarities" target="_blank" rel="noopener">AREIT Pre-IPO - First REIT listing comes with its peculiarities</a></p>
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<li><a href="https://www.smartkarma.com/insights/rl-commercial-reit-pre-ipo-motley-crew-of-assets-has-weathered-covid-well" target="_blank" rel="noopener">RL Commercial REIT Pre-IPO - Motley crew of assets has weathered COVID well</a></li>
</ul>
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MREIT, sponsored by Megaworld, raised around US$300m in its Philippines listing. In this note, we will talk about the updates since our IPO note.


We have looked at MREITs in our earlier notes:




MREIT Pre-IPO - Mediocre performance, convoluted lease, low asset yield

RL Commercial REIT and MREIT Peer Comparison - One Is Much Better Shape



MREIT IPO - Needs to Be Priced a Whole Lot Lower


Apart from MREIT we have also covered prior listings of the four currently listed REITs in the Philippines:




Filinvest REIT IPO - Almost like a single asset REIT, COVID hasn’t been kind


DDMP REIT Pre-IPO - Brand new assets but not with the best of outlooks


AREIT Pre-IPO - First REIT listing comes with its peculiarities

RL Commercial REIT Pre-IPO - Motley crew of assets has weathered COVID well



ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Philippine Stock Exchange / Equity Bottom-Up

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<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> reported a strong set of 1H2021 numbers with net income up by +63.1% YoY on the back of a +30.9% increase in operating revenues.</p>
<p>The bottom-line performance was driven by the increase in operating revenues together with positive investment income. </p>
<p>The company saw particularly strong growth in listing fees due to a number of large size IPOs, whilst transaction fees and SCCP clearing fees increased due to higher market volumes, driven by particularly strong retail activity.</p>
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<p>The real growth driver for revenues and profits in 1H2021 came from a significant increase in capital raisings.</p>
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<p>Even after the flush of offerings in 1H2021, the listing pipeline is robust for 2H2021 and going into 2022, with a number of already approved issues plus upcoming planned listings as well as a number of planned REITs in the pipeline, which have already been featured in the news.</p>
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<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> has also laid out a number of key initiatives set to launch this year which will provide a potential boost to activity on the exchange including new rules on short selling.</p>
<p><a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> will launch a new marketing campaign to encourage more companies to list and especially SMEs. </p>
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<p>This latest set of results underline the positive story with <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> which continues to look promising with a strong IPO and placement pipeline for 2H2021 and going into 2022. </p>
<p>If we factor in the company's cash per share into the <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> valuation then the company is trading on an ex-cash FY21E PER of 16.0x and FY22E PER of 14.5x making it look significantly more attractive versus its peers together with stronger growth prospects. </p>
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The Philippine Stock Exchange (PSE PM) reported a strong set of 1H2021 numbers with net income up by +63.1% YoY on the back of a +30.9% increase in operating revenues.
The bottom-line performance was driven by the increase in operating revenues together with positive investment income. 
The company saw particularly strong growth in listing fees due to a number of large size IPOs, whilst transaction fees and SCCP clearing fees increased due to higher market volumes, driven by particularly strong retail activity.





The real growth driver for revenues and profits in 1H2021 came from a significant increase in capital raisings.

Even after the flush of offerings in 1H2021, the listing pipeline is robust for 2H2021 and going into 2022, with a number of already approved issues plus upcoming planned listings as well as a number of planned REITs in the pipeline, which have already been featured in the news.



The Philippine Stock Exchange (PSE PM) has also laid out a number of key initiatives set to launch this year which will provide a potential boost to activity on the exchange including new rules on short selling.
Philippine Stock Exchange (PSE PM) will launch a new marketing campaign to encourage more companies to list and especially SMEs. 





This latest set of results underline the positive story with Philippine Stock Exchange (PSE PM) which continues to look promising with a strong IPO and placement pipeline for 2H2021 and going into 2022. 
If we factor in the company's cash per share into the Philippine Stock Exchange (PSE PM) valuation then the company is trading on an ex-cash FY21E PER of 16.0x and FY22E PER of 14.5x making it look significantly more attractive versus its peers together with stronger growth prospects. 


Philippine Stock Exchange (PSE PM) - Thriving on Retailers and IPOs

<div><p><a href="https://www.smartkarma.com/entities/filinvest-reit" target="_blank" data-smartkarma-citation="entities:33764:1" rel="noopener">Filinvest Reit (FILRT PM)</a> (FREIT) raised around US$250m in its Philippines listing. The REIT is sponsored by <a href="https://www.smartkarma.com/entities/filinvest-land-inc" target="_blank" data-smartkarma-citation="entities:23026:1" rel="noopener">Filinvest Land (FLI PM)</a>. </p></div><div><p>FREIT’s initial property portfolio consists of 16 office towers located in Northgate Cyberzone, Alabang, and one office tower in Cebu City with an aggregate office space GLA of 299,158 sqm and 2,204 sqm of retail GLA. The portfolio will have a weighted average lease expiry (WALE) of 3.8 years with an occupancy of 89.7% as of Mar 2021. The Properties were valued at PHP48,547.4m (US$965m).</p></div><div>
<p>We looked at the background of the REIT in our earlier notes:</p>
<ul>
<li><a href="https://www.smartkarma.com/insights/filinvest-reit-ipo-almost-like-a-single-asset-reit-covid-hasn-t-been-kind" target="_blank" rel="noopener">Filinvest REIT IPO - Almost like a single asset REIT, COVID hasn’t been kind, and</a></li>
<li><a href="https://www.smartkarma.com/insights/filinvest-reit-ipo-hard-to-get-excited-despite-the-yield" target="_blank" rel="noopener">Filinvest REIT IPO - Hard to Get Excited, Despite the Yield</a></li>
</ul>
</div><div><p>In this note, we will talk about the trading dynamics.</p></div>

Filinvest Reit (FILRT PM) (FREIT) raised around US$250m in its Philippines listing. The REIT is sponsored by Filinvest Land (FLI PM). FREIT’s initial property portfolio consists of 16 office towers located in Northgate Cyberzone, Alabang, and one office tower in Cebu City with an aggregate office space GLA of 299,158 sqm and 2,204 sqm of retail GLA. The portfolio will have a weighted average lease expiry (WALE) of 3.8 years with an occupancy of 89.7% as of Mar 2021. The Properties were valued at PHP48,547.4m (US$965m).
We looked at the background of the REIT in our earlier notes:

Filinvest REIT IPO - Almost like a single asset REIT, COVID hasn’t been kind, and
Filinvest REIT IPO - Hard to Get Excited, Despite the Yield

In this note, we will talk about the trading dynamics.

Filinvest REIT IPO Trading - Set for Another Tepid Debut

Philippines

Jollibee Foods Corporation owns, franchises and manages a network of fast food restaurants under the trade name Jollibee. The Company was incorporated in 1978.

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Jollibee Foods (JFC PM)

Synergy Grid & Development Re-IPO - Negatives and a Look at Valuation

Synergy Grid & Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. SGP indirectly controls over 60% of National...

Sumeet Singh

Synergy Grid & Development Re-IPO - Deal Background and Positives

Synergy Grid & Development Phils (SGP) aims to raise up to US$350m in its Philippines (Phil) IPO. SGP indirectly controls over 60% of National...

Sumeet Singh

MREIT IPO Trading - Heading Lower

MREIT, sponsored by Megaworld, raised around US$300m in its Philippines listing. In this note, we will talk about the updates since our IPO note.

Sumeet Singh

Philippine Stock Exchange (PSE PM) - Thriving on Retailers and IPOs

The Philippine Stock Exchange (PSE PM) continues to look undervalued relative to other listed regional exchanges with a strong IPO and placement...

Angus Mackintosh

Filinvest REIT IPO Trading - Set for Another Tepid Debut

Filinvest Reit (FILRT PM) (FREIT) raised around US$250m in its Philippines listing. The REIT is sponsored by Filinvest Land (FLI PM). FREIT’s...

Sumeet Singh

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