Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>Our enthusiasm for the LG Energy Solutions IPO has been rather muted given a plethora of red flags and demanding valuations. </li>
<li>However, given market enthusiasm for the name, the underperformance of parent LG Chem created an opportunity. </li>
<li>A 16% move in four days has corrected most of the discrepancy though and it is time to leave in our view.</li>
</ul>


Our enthusiasm for the LG Energy Solutions IPO has been rather muted given a plethora of red flags and demanding valuations. 
However, given market enthusiasm for the name, the underperformance of parent LG Chem created an opportunity. 
A 16% move in four days has corrected most of the discrepancy though and it is time to leave in our view.


LG Chem – Holdco Discount Narrowed Like a Charm… Time to Exit

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

LG Energy Solution / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> (LGES) is looking to raise up to US$10.8bn in its upcoming South Korea IPO.</li>
<li>LGES is the EV battery unit of LG Chem. It was spun off in December last year. The company is a major supplier to customers including Tesla and General Motors.</li>
<li>In this note, we discuss our blue sky and bear assumptions and take a look at how peers have traded since our previous note.</li>
</ul>



LG Energy Solution (LGENERGY KS) (LGES) is looking to raise up to US$10.8bn in its upcoming South Korea IPO.
LGES is the EV battery unit of LG Chem. It was spun off in December last year. The company is a major supplier to customers including Tesla and General Motors.
In this note, we discuss our blue sky and bear assumptions and take a look at how peers have traded since our previous note.


LG Energy IPO -  Peer Updates + Bull/Bear Scenarios

<ul>
<li>2021 marked our sixth year covering Equity Capital Markets (ECM) in Asia Pacific. </li>
<li>Most markets were in top gear on the ECM front and we ended the year covering the highest number of IPOs and the second highest number of placements since inception.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2021 marked our sixth year covering Equity Capital Markets (ECM) in Asia Pacific. 
Most markets were in top gear on the ECM front and we ended the year covering the highest number of IPOs and the second highest number of placements since inception.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>As for the themed indexes, a lot of confusion arises from inclusion timing and whether to replace LG Chem with LG Energy OR include both LG Energy and LG Chem.</li>
<li>TIGER and KODEX will likely implement it <strong>right after February 9</strong>, seven trading days after listing.</li>
<li>The possibility that LG Chem and LG Energy will both remain in these themed indexes is near zero. <strong>LG Energy will replace LG Chem</strong>.</li>
</ul>


As for the themed indexes, a lot of confusion arises from inclusion timing and whether to replace LG Chem with LG Energy OR include both LG Energy and LG Chem.
TIGER and KODEX will likely implement it right after February 9, seven trading days after listing.
The possibility that LG Chem and LG Energy will both remain in these themed indexes is near zero. LG Energy will replace LG Chem.


LG Energy Themed ETFs Methodology Changes: Latest Situation Update

<ul>
<li>We take a look at the Asia Pacific IPO pipeline for 2022. This list has been compiled on a best effort basis from tracking company filings and other sources.</li>
<li>For readers who aren't familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific (ex A-shares), including China ADRs. </li>
<li>The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.</li>
</ul>


We take a look at the Asia Pacific IPO pipeline for 2022. This list has been compiled on a best effort basis from tracking company filings and other sources.
For readers who aren't familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific (ex A-shares), including China ADRs. 
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.


South Korea

LG Energy Solution produces and sells batteries. The Company manufactures and sells automobile batteries, small batteries, energy storage system batteries, and other products. LG Energy Solution markets its products worldwide.

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LG Energy Solution (373220 KS)

LG Chem – Holdco Discount Narrowed Like a Charm… Time to Exit

Market enthusiasm for the LG Energy IPO and the underperformance of parent LG Chem created an opportunity. A 16% move in four days has corrected...

Mio Kato

LG Energy IPO - Peer Updates + Bull/Bear Scenarios

LGES bookbuild is underway. In this note, we discuss our blue sky and bear assumptions and take a look at how peers have traded since our previous...

Sumeet Singh

Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

2021 marked our sixth year of Asia ECM coverage. Most markets were in top gear on the ECM front and we ended the year covering the highest number...

Sumeet Singh

LG Energy Themed ETFs Methodology Changes: Latest Situation Update

This post updates the latest situations on LG Energy's inclusion into the battery-themed ETFs: inclusion timing and whether to replace LG Chem.

Sanghyun Park

Aequitas 2022 Asia IPO Pipeline

We take a look at the Asia Pacific IPO pipeline for 2022. This list has been compiled on a best effort basis from tracking company filings and...

Sumeet Singh

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