APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> is looking to raise US$135m from selling its remaining stake in <a href="https://www.smartkarma.com/entities/zomato-ltd" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a>.</li>
<li>Since receiving shares from Zomato’s acquisition of 91% of Blinkit’s outstanding shares, Softbank has been busy trimming its stake in Zomato. The stake sale now will be a cleanup one.</li>
<li>Representing just 1.2 days of Zomato’s three month ADV, the deal here would be easily digested by the firm.</li>
</ul>



Softbank Group (9984 JP) is looking to raise US$135m from selling its remaining stake in Zomato (ZOMATO IN).
Since receiving shares from Zomato’s acquisition of 91% of Blinkit’s outstanding shares, Softbank has been busy trimming its stake in Zomato. The stake sale now will be a cleanup one.
Representing just 1.2 days of Zomato’s three month ADV, the deal here would be easily digested by the firm.


Zomato Placement - SVF's Overhang Will Be Lifted Post-Deal, Momentum on the Stock Remains Strong

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Quantitative Analysis

<ul>
<li>During the last two weeks both discounts have widened by more than 1 percentage point, likely driven by risk-off sentiment as opposed to idiosyncratic factors. </li>
<li>Management have released the NAV update for Q2 of FY24. Naspers' NAV can be found <a href="https://www.naspers.com/investors/investing-in-naspers/net-asset-value" target="_blank" rel="noopener">here</a> and Prosus' NAV <a href="https://www.prosus.com/investors/investing-in-prosus/net-asset-value" target="_blank" rel="noopener">here</a>.</li>
<li>During the quarter, Prosus' discount widened by 4.2 percentage points to 39.8% and Naspers' discount widened by 3.6 percentage points to 46.6%, erasing cross-holding unwind gains.</li>
</ul>


During the last two weeks both discounts have widened by more than 1 percentage point, likely driven by risk-off sentiment as opposed to idiosyncratic factors. 
Management have released the NAV update for Q2 of FY24. Naspers' NAV can be found here and Prosus' NAV here.
During the quarter, Prosus' discount widened by 4.2 percentage points to 39.8% and Naspers' discount widened by 3.6 percentage points to 46.6%, erasing cross-holding unwind gains.


Naspers & Prosus: Risk off Trade Puts Pressure on Discounts, NAV Update for Q2 FY24 Released

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<ul>
<li>On 16th Nov 22, post-market close, along with its 3Q22 results Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan.</li>
<li>At the time of declaration, the dividend amounted to US$20bn or 15.5% of Meituan’s outstanding shares.</li>
<li>We have spoken about the background of the deal in our earlier notes. In this note, we talk about the overnight updates.</li>
</ul>


On 16th Nov 22, post-market close, along with its 3Q22 results Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan.
At the time of declaration, the dividend amounted to US$20bn or 15.5% of Meituan’s outstanding shares.
We have spoken about the background of the deal in our earlier notes. In this note, we talk about the overnight updates.


Tencent Meituan Dividend - All Shares in CCASS - More Pressure Now but Will Have a Shorter Overhang

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Communication Services Select Sector SPDR Fund / Technical Analysis

Communication Services Select Sector SPDR Fund

<ul>
<li>In our January 10th Compass, we discussed a break above 3910 on SPX would signal a tradable rally, with 4100-4165 our target, the top-end of our expected 2023 trading range.</li>
<li>We believe equities are still in the midst of a rally/short squeeze, but that the rally is likely to fizzle in the 4100-4165 area.</li>
<li>After being underweight Communications (XLC) since Nov 2021, sidestepping 20% underperformance vs. SPX, we now see signs of price and RS bottoms, and we are upgrading to market weight. Buy.</li>
</ul>


In our January 10th Compass, we discussed a break above 3910 on SPX would signal a tradable rally, with 4100-4165 our target, the top-end of our expected 2023 trading range.
We believe equities are still in the midst of a rally/short squeeze, but that the rally is likely to fizzle in the 4100-4165 area.
After being underweight Communications (XLC) since Nov 2021, sidestepping 20% underperformance vs. SPX, we now see signs of price and RS bottoms, and we are upgrading to market weight. Buy.


Upgrading Communications, Downgrading Staples - Both to Market Weight; US Dollar Major Top

Research Firm with a Qualitative Overlay, Pearl Gray Equity and Research

Pearl Gray Equity and Research

Research Firm with a Qualitative Overlay

Quantitative fund & research firm with a qualitative overlay. 

Our coverage: General U.S. with a skew towards the primary sector. 

Methods: Smart Beta/Factor Pricing, Neural Networks, Street Gossip, and Common Sense.

Equity Bottom-Up

<ul>
<li>Naspers' South African ventures exhibit solid growth, but an inflection point awaits, according to the company.</li>
<li>The company's exposure to China's reopening is a roll of the dice, says Naspers.</li>
<li>Naspers' (<a href="https://www.smartkarma.com/search?q=NPSNY" target="_blank" rel="noopener">OTCPK:NPSNY</a>) stock has climbed by more than <a href="https://www.smartkarma.com/search?q=NPSNY" target="_blank" rel="noopener">20%</a> in the past month, subsequently luring investors' attention.</li>
</ul>


Naspers' South African ventures exhibit solid growth, but an inflection point awaits, according to the company.
The company's exposure to China's reopening is a roll of the dice, says Naspers.
Naspers' (OTCPK:NPSNY) stock has climbed by more than 20% in the past month, subsequently luring investors' attention.


South Africa

Naspers Limited operates in the technology industry. The Company invests in global internet companies across the world.

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Naspers (NPSNY US)

Zomato Placement - SVF's Overhang Will Be Lifted Post-Deal, Momentum on the Stock Remains Strong

Softbank Group (9984 JP) is looking to raise US$135m from selling its remaining stake in Zomato (ZOMATO IN). The stake sale now will be a cleanup one.

Clarence Chu

Naspers & Prosus: Risk off Trade Puts Pressure on Discounts, NAV Update for Q2 FY24 Released

Naspers & Prosus: discounts widen during last two weeks driven by risk-off sentiment plus Q2 FY24 NAV update released. Fresh opportunity for those...

DMA

Tencent Meituan Dividend - All Shares in CCASS - More Pressure Now but Will Have a Shorter Overhang

On 16th Nov 22, Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan. In this note, we talk...

Sumeet Singh

Upgrading Communications, Downgrading Staples - Both to Market Weight; US Dollar Major Top

We believe equities are still in the midst of a rally/short squeeze, but that the rally is likely to fizzle in the $SPX 4100-4165 area. Upgrading...

Vermilion Research

Naspers: Looming Concerns

Naspers' South African ventures exhibit solid growth, but an inflection point awaits, according to the company. The company's exposure to China's...

Pearl Gray Equity and Research

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