IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Shinko Electric Industries / Event-Driven

<ul>
<li>
<a href="https://www.reuters.com/markets/deals/mitsubishi-corp-considering-bid-fujitsus-chip-unit-shinko-electric-sources-2023-10-17/" target="_blank" rel="noopener">Reuters reported</a> that <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> is considering a joint bid for <a href="https://www.smartkarma.com/entities/fujitsu-ltd" target="_blank" data-smartkarma-citation="entities:16968:1" rel="noopener">Fujitsu Ltd (6702 JP)</a>’s 50% stake in <a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a>. </li>
<li>Fujitsu first flagged a potential stake sale in its 1HFY22 results last October. Previously rumoured suitors include Apollo Global Management, Bain Capital, Dai Nippon Printing, JIC and KKR.</li>
<li>Shinko’s shares are up 73% YTD, which is not excessive compared to <a href="https://www.smartkarma.com/entities/ibiden-co-ltd" target="_blank" data-smartkarma-citation="entities:16630:1" rel="noopener">Ibiden Co Ltd (4062 JP)</a> (up 63.2% YTD). The valuation is undemanding, which facilitates a potential offer.</li>
</ul>



Reuters reported that Mitsubishi Corp (8058 JP) is considering a joint bid for Fujitsu Ltd (6702 JP)’s 50% stake in Shinko Electric Industries (6967 JP). 
Fujitsu first flagged a potential stake sale in its 1HFY22 results last October. Previously rumoured suitors include Apollo Global Management, Bain Capital, Dai Nippon Printing, JIC and KKR.
Shinko’s shares are up 73% YTD, which is not excessive compared to Ibiden Co Ltd (4062 JP) (up 63.2% YTD). The valuation is undemanding, which facilitates a potential offer.


Shinko Electric (6967 JP): Bidders Circle for Fujitsu’s Stake

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a> has been on the block. 2nd Round Bids were apparently due last month, but with "Economic Security" considerations, one wonders if that stretches a bit.</li>
<li>The stock is now at the low end of its range vs Ibiden, and the timing is right for a deal which could give it a pop. </li>
<li>A "split price" takeover seems reasonable as a structure. I expect upside. Still. </li>
</ul>



Shinko Electric Industries (6967 JP) has been on the block. 2nd Round Bids were apparently due last month, but with "Economic Security" considerations, one wonders if that stretches a bit.
The stock is now at the low end of its range vs Ibiden, and the timing is right for a deal which could give it a pop. 
A "split price" takeover seems reasonable as a structure. I expect upside. Still. 


Shinko Electric (6967) - Waiting for a Package

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

Cheng Shin Rubber Ind Co., Ltd. / Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">Philippines Stock Exchange PSEi Index (PCOMP INDEX)</a> rebalance was implemented last week and there were interesting moves at the close on implementation day.</li>
<li>The focus this week will be on pre-positioning for a global index rebalance where the review period commences next week.</li>
<li>Units outstanding on <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets-223f5da3-7054-4e4f-bc55-b7f0852c2581" target="_blank" data-smartkarma-citation="entities:31998:1" rel="noopener">iShares Emerging Markets (EMXC US)</a> are at a new high while there continue to be redemptions in <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets" target="_blank" data-smartkarma-citation="entities:438:1" rel="noopener">iShares Emerging Markets (EEM US)</a>. </li>
</ul>


The Philippines Stock Exchange PSEi Index (PCOMP INDEX) rebalance was implemented last week and there were interesting moves at the close on implementation day.
The focus this week will be on pre-positioning for a global index rebalance where the review period commences next week.
Units outstanding on iShares Emerging Markets (EMXC US) are at a new high while there continue to be redemptions in iShares Emerging Markets (EEM US). 


Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

<ul>
<li>Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.</li>
<li>There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.</li>
<li>There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.</li>
</ul>


Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.
There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.
There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.


Yuanta/​P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

<ul>
<li>In this insight, we take look at Quiddity's expectations for index changes and capping flows for the TDIV Index for the December 2023 review.</li>
<li>I currently see 5 ADDs and 4 DELs but there are several names close to the border and expectations could change before the base date as prices move around.</li>
<li>The estimate for one-way capping flow in December 2023 is US$1.2bn.</li>
</ul>


In this insight, we take look at Quiddity's expectations for index changes and capping flows for the TDIV Index for the December 2023 review.
I currently see 5 ADDs and 4 DELs but there are several names close to the border and expectations could change before the base date as prices move around.
The estimate for one-way capping flow in December 2023 is US$1.2bn.


Quiddity Leaderboard TDIV Dec 23: Many Changes and One-Way Flows of US$1.2bn+!

Taiwan

Nan Ya Printed Circuit Board Corporation manufactures and markets printed circuit boards (PCBs) and integrated circuit (IC) substrates.

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Nan Ya Printed Circuit Board (8046 TT)

Shinko Electric (6967 JP): Bidders Circle for Fujitsu’s Stake

Mitsubishi Corp is the latest rumoured suitor. Shinko’s shares are up 73% YTD, which is not excessive compared to Ibiden (63.2% YTD). The valuation...

Arun George

Shinko Electric (6967) - Waiting for a Package

Shinko Electric (6967) is up for grabs. As at last look, there were many potential grabbers. I still like this trade, and now Shinko is cheap to...

Travis Lundy

Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

The Yuanta/P-Shares Taiwan Dividend Plus ETF may see 6 adds and 5 deletes in Dec, with a 1-way turnover of 19.8% and 1-way trade of US$1.36bn. The...

Brian Freitas

Quiddity Leaderboard TDIV Dec 23: Many Changes and One-Way Flows of US$1.2bn+!

I expect one-way flows (ADDs/DELs, capping, reweights) to be ~US$1.2bn which is turnover of approximately 18.5%. According to my estimates,...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

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Shinko Electric (6967 JP): Bidders Circle for Fujitsu’s Stake

Mitsubishi Corp is the latest rumoured suitor. Shinko’s shares are up 73% YTD, which is not excessive compared to Ibiden (63.2% YTD). The valuation...

Arun George

Shinko Electric (6967) - Waiting for a Package

Shinko Electric (6967) is up for grabs. As at last look, there were many potential grabbers. I still like this trade, and now Shinko is cheap to...

Travis Lundy

Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Yuanta/​P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

The Yuanta/P-Shares Taiwan Dividend Plus ETF may see 6 adds and 5 deletes in Dec, with a 1-way turnover of 19.8% and 1-way trade of US$1.36bn. The...

Brian Freitas

Quiddity Leaderboard TDIV Dec 23: Many Changes and One-Way Flows of US$1.2bn+!

I expect one-way flows (ADDs/DELs, capping, reweights) to be ~US$1.2bn which is turnover of approximately 18.5%. According to my estimates,...

Janaghan Jeyakumar, CFA

Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade