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

<div>CTOS Digital (CTOS) raised around US$291m via its Malaysian IPO. It is majority owned by Creador, a PE firm. </div><div>We covered most aspects of the deal in our earlier notes, <a href="https://www.smartkarma.com/insights/ctos-digital-pre-ipo-credit-where-credit-s-due" target="_blank" rel="noopener">CTOS Digital Pre-IPO - Credit where credit’s due </a>and <a href="https://www.smartkarma.com/insights/ctos-digital-ipo-market-leader-strong-pe-record-and-cornerstone" target="_blank" rel="noopener">CTOS Digital IPO - Market Leader, Strong PE Record and Cornerstone</a>.</div><div>In this note, we will talk about the updates since then and the trading dynamics.</div>

CTOS Digital (CTOS) raised around US$291m via its Malaysian IPO. It is majority owned by Creador, a PE firm. We covered most aspects of the deal in our earlier notes, CTOS Digital Pre-IPO - Credit where credit’s due and CTOS Digital IPO - Market Leader, Strong PE Record and Cornerstone.In this note, we will talk about the updates since then and the trading dynamics.

CTOS Digital (CTOS) aims to raise up to US$291m via its Malaysian IPO. It is majority owned by Creador, a PE firm. CTOS is an investment holding whose subsidiaries are principally involved in the business of credit reporting, digital software related services, software development, outsourcing and training services and investment holding. CTOS was the largest credit reporting agency (CRA) in Malaysia with an estimated market share in terms of revenue of 71.2% in 2020 according to the IMR Report. Its associate, Experian, was the second largest credit reporting agency (CRA) in Malaysia, with an estimated market share in terms of revenue of 17.5%.We covered most aspects of the deal in our earlier note, <a href="https://www.smartkarma.com/insights/ctos-digital-pre-ipo-credit-where-credit-s-due" target="_blank" rel="noopener">CTOS Digital Pre-IPO - Credit where credit’s due</a>.In this note, we will run the deal through our ECM framework and talk about the deal dynamics.

CTOS Digital (CTOS) aims to raise up to US$291m via its Malaysian IPO. It is majority owned by Creador, a PE firm. CTOS is an investment holding whose subsidiaries are principally involved in the business of credit reporting, digital software related services, software development, outsourcing and training services and investment holding. CTOS was the largest credit reporting agency (CRA) in Malaysia with an estimated market share in terms of revenue of 71.2% in 2020 according to the IMR Report. Its associate, Experian, was the second largest credit reporting agency (CRA) in Malaysia, with an estimated market share in terms of revenue of 17.5%.We covered most aspects of the deal in our earlier note, CTOS Digital Pre-IPO - Credit where credit’s due.In this note, we will run the deal through our ECM framework and talk about the deal dynamics.

CTOS Digital IPO - Market Leader, Strong PE Record and Cornerstone

CTOS Digital (CTOS) aims to raise up to US$300m via its Malaysian IPO. It is majority owned by Creador, a PE firm. CTOS is an investment holding whose subsidiaries are principally involved in the business of credit reporting, digital software related services, software development, outsourcing and training services and investment holding.CTOS was the largest credit reporting agency (CRA) in Malaysia with an estimated market share in terms of revenue of 71.2% in 2020 according to the IMR Report. Its associate, Experian, was the second largest CRA in Malaysia, with an estimated market share in terms of revenue of 17.5%.

CTOS Digital (CTOS) aims to raise up to US$300m via its Malaysian IPO. It is majority owned by Creador, a PE firm. CTOS is an investment holding whose subsidiaries are principally involved in the business of credit reporting, digital software related services, software development, outsourcing and training services and investment holding.CTOS was the largest credit reporting agency (CRA) in Malaysia with an estimated market share in terms of revenue of 71.2% in 2020 according to the IMR Report. Its associate, Experian, was the second largest CRA in Malaysia, with an estimated market share in terms of revenue of 17.5%.

CTOS Digital Pre-IPO - Credit Where Credit’s Due

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

*Improved Operating Result: Bank Central Asia (BBCA.IJ) [BCA] reported 1Q21 results of IDR 7.0 tn do not do BCA justice, as core operating results grew IDR 1.5 tn (40.9%) over the same period. BCA’s positive operating results were highlighted by two factors: a) interest income growth of IDR 385 mn (2.8%) due largely to a bit of leverage in the corporate securities portfolio, and b) a tax rate reduction; and*Credit Challenges Persist, But Credit Break Decelerates: By our calculation, we find that 1Q20 net new NPLs amounted to IDR 742 bn for annualized rate of increase of 28.7% - which is quite favorable compared to 4Q20 results of IDR 1.3 tn and 46.5%. Given the surprise deceleration in net new NPL formation, we calculate that loss reserves are likely right where they need to be given the uptick in special mention and lack of full clarity with the restructuring portfolio.

*Improved Operating Result: Bank Central Asia (BBCA.IJ) [BCA] reported 1Q21 results of IDR 7.0 tn do not do BCA justice, as core operating results grew IDR 1.5 tn (40.9%) over the same period. BCA’s positive operating results were highlighted by two factors: a) interest income growth of IDR 385 mn (2.8%) due largely to a bit of leverage in the corporate securities portfolio, and b) a tax rate reduction; and*Credit Challenges Persist, But Credit Break Decelerates: By our calculation, we find that 1Q20 net new NPLs amounted to IDR 742 bn for annualized rate of increase of 28.7% - which is quite favorable compared to 4Q20 results of IDR 1.3 tn and 46.5%. Given the surprise deceleration in net new NPL formation, we calculate that loss reserves are likely right where they need to be given the uptick in special mention and lack of full clarity with the restructuring portfolio.

Bank Central Asia – Light At The End Of The Tunnel

*Solid Core Operating Result: CIMB Group (CIMB.MK) [CIMB] reported 3Q20 results of MYR 194 mn, declining MYR 83 mn (30.0%) linked quarter. However, when we exclude securities gains/losses, core operating results actually came in at MYR 293 mn  - exceeding 2Q20 operating losses of MYR 58 mn; and *Credit Risk Decelerating: CIMB’s NPLs declined MYR 999.9 mn (7.5%) to MYR 12.9 bn, and represent 3.38% of total loans – improving 24 bp linked quarter. With NCOs of MYR 1.2 bn, we find that net new NPLs increased MYR 187.5 mn or 5.6% on an annualized basis. Despite the improvement, we believe that reserve cover is too light by MYR 1.5 bn – which represents just over three quarters of profit before tax.

*Solid Core Operating Result: CIMB Group (CIMB.MK) [CIMB] reported 3Q20 results of MYR 194 mn, declining MYR 83 mn (30.0%) linked quarter. However, when we exclude securities gains/losses, core operating results actually came in at MYR 293 mn  - exceeding 2Q20 operating losses of MYR 58 mn; and *Credit Risk Decelerating: CIMB’s NPLs declined MYR 999.9 mn (7.5%) to MYR 12.9 bn, and represent 3.38% of total loans – improving 24 bp linked quarter. With NCOs of MYR 1.2 bn, we find that net new NPLs increased MYR 187.5 mn or 5.6% on an annualized basis. Despite the improvement, we believe that reserve cover is too light by MYR 1.5 bn – which represents just over three quarters of profit before tax. 

Thailand

Maybank Kim Eng Securities Thailand PCL is a securities brokerage firm, offering a wide range of investment and securities services.

Maybank Kim Eng Securities Thailand (MBKET TB)

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Maybank Kim Eng Securities Thailand (MBKET TB)

CTOS Digital IPO Trading - Strong Demand

CTOS Digital (CTOS) raised around US$291m via its Malaysian IPO. It is majority owned by Creador, a PE firm. In this note, we will talk about the...

Sumeet Singh

CTOS Digital IPO - Market Leader, Strong PE Record and Cornerstone

CTOS Digital (CTOS) aims to raise up to US$291m via its Malaysian IPO. It is majority owned by Creador, a PE firm. CTOS is the largest credit...

Sumeet Singh

CTOS Digital Pre-IPO - Credit Where Credit’s Due

CTOS Digital (CTOS) aims to raise up to US$300m via its Malaysian IPO. It is majority owned by Creador, a PE firm. It has an over 70% market share...

Sumeet Singh

Bank Central Asia – Light At The End Of The Tunnel

BANK CENTRAL ASIA: BCA's core operating results grew 40.9% QOQ in 1Q21, and were highlighted by interest income growth and lower taxes. Another...

Thomas J. Monaco

CIMB Group – Reserve Cover Light Still

CIMB GROUP: Operating results exhibited linked quarter improvement, although stated results declined. Reserve cover remains quite light despite...

Thomas J. Monaco

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