Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 134 stocks over the last week. </li>
<li>Top sectors in terms of WoW A/H increase were consumer staple, health care and industrial. </li>
<li>Industrial sectors are near 52 week high for A/H premium. Top three stocks for the WoW A/H increases are Jingcheng Machinery, Shanghai Haohai, and Dynagreen.</li>
</ul>


We analyse the changes of A/H premium on 134 stocks over the last week. 
Top sectors in terms of WoW A/H increase were consumer staple, health care and industrial. 
Industrial sectors are near 52 week high for A/H premium. Top three stocks for the WoW A/H increases are Jingcheng Machinery, Shanghai Haohai, and Dynagreen.


A/H Premium Weekly: Industrial Sector at 52 Week High

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.</p><p>For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.</p><p>Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.</p><p>Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.</p><p>Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.</p><p>We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.</p>

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

<p>Post market close on Friday, the China Securities Index Company announced the changes to the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> that will be effective after the close of trading on 11 December.</p>
<p>There are 26 inclusions and exclusions in the review with an estimated one-way turnover of 3.87%.</p>
<p>The inclusions are <a href="https://www.smartkarma.com/entities/tongfang-guoxin-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:15513:1" rel="noopener">Unigroup Guoxin (002049 CH)</a>, <a href="https://www.smartkarma.com/entities/suzhou-dongshan-precision-a" target="_blank" data-smartkarma-citation="entities:8796:1" rel="noopener">Suzhou Dongshan Precision A (002384 CH)</a>, <a href="https://www.smartkarma.com/entities/wuhan-guide-infrared-co-ltd" target="_blank" data-smartkarma-citation="entities:20330:1" rel="noopener">Wuhan Guide Infrared Co,Ltd. (002414 CH)</a>, <a href="https://www.smartkarma.com/entities/jpmf-guangdong-co-ltd-a" target="_blank" data-smartkarma-citation="entities:19050:1" rel="noopener">Jpmf Guangdong Co Ltd A (002600 CH)</a>, <a href="https://www.smartkarma.com/entities/yunnan-chuangxin-new-material" target="_blank" data-smartkarma-citation="entities:27135:1" rel="noopener">Yunnan Chuangxin New Material (002812 CH)</a>, <a href="https://www.smartkarma.com/entities/asymchem-laboratories-tianjin-co-ltd" target="_blank" data-smartkarma-citation="entities:28265:1" rel="noopener">Asymchem Laboratories (002821 CH)</a>, <a href="https://www.smartkarma.com/entities/jafron-biomedical-co-ltd" target="_blank" data-smartkarma-citation="entities:29575:1" rel="noopener">Jafron Biomedical Co Ltd (300529 CH)</a>, <a href="https://www.smartkarma.com/entities/bgi-genomics-co-ltd" target="_blank" data-smartkarma-citation="entities:25890:1" rel="noopener">Bgi Genomics (300676 CH)</a>, <a href="https://www.smartkarma.com/entities/china-cssc-holdings-ltd-a" target="_blank" data-smartkarma-citation="entities:2464:1" rel="noopener">China Cssc Holdings Ltd A (600150 CH)</a>, <a href="https://www.smartkarma.com/entities/beijing-tiantan-biological-products-corp" target="_blank" data-smartkarma-citation="entities:5190:1" rel="noopener">Beijing Tiantan Biological Products (600161 CH)</a>, <a href="https://www.smartkarma.com/entities/jcet-group-co-ltd" target="_blank" data-smartkarma-citation="entities:8628:1" rel="noopener">JCET Group (600584 CH)</a>, <a href="https://www.smartkarma.com/entities/tsingtao-brewery-co-ltd-a" target="_blank" data-smartkarma-citation="entities:846:1" rel="noopener">Tsingtao Brewery Co Ltd A (600600 CH)</a>, <a href="https://www.smartkarma.com/entities/topchoice-medical-corporation" target="_blank" data-smartkarma-citation="entities:1102:1" rel="noopener">Topchoice Medical (600763 CH)</a>, <a href="https://www.smartkarma.com/entities/shanghai-baosight-software-co" target="_blank" data-smartkarma-citation="entities:28228:1" rel="noopener">Shanghai Baosight Software Co (600845 CH)</a>, <a href="https://www.smartkarma.com/entities/jonjee-high-tech-industrial-and-commercial-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:14622:1" rel="noopener">Jonjee High-Tech Ind.&amp; Com. (600872 CH)</a>, <a href="https://www.smartkarma.com/entities/zhongtai-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:29935:1" rel="noopener">Zhongtai Securities Co Ltd (600918 CH)</a>, <a href="https://www.smartkarma.com/entities/boc-international-china-co-a" target="_blank" data-smartkarma-citation="entities:29972:1" rel="noopener">Boc International China Co-A (601696 CH)</a>, <a href="https://www.smartkarma.com/entities/china-merchants-energy-a" target="_blank" data-smartkarma-citation="entities:14450:1" rel="noopener">China Merchants Energy A (601872 CH)</a>, <a href="https://www.smartkarma.com/entities/nanjing-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:27192:1" rel="noopener">Nanjing Securities Co Ltd (601990 CH)</a>, Gan&amp;Lee Pharma (603087 CH), <a href="https://www.smartkarma.com/entities/gongniu-group-co-ltd" target="_blank" data-smartkarma-citation="entities:30060:1" rel="noopener">Gongniu Group Co Ltd (603195 CH)</a>, <a href="https://www.smartkarma.com/entities/beijing-wantai-biological-a" target="_blank" data-smartkarma-citation="entities:30129:1" rel="noopener">Beijing Wantai Biological-A (603392 CH)</a>, <a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology Co Ltd (688008 CH)</a>, <a href="https://www.smartkarma.com/entities/china-railway-signal-com-a" target="_blank" data-smartkarma-citation="entities:28237:1" rel="noopener">China Railway Signal &amp; Com-A (688009 CH)</a>, <a href="https://www.smartkarma.com/entities/advanced-micro-fabrication-a" target="_blank" data-smartkarma-citation="entities:30308:1" rel="noopener">Advanced Micro-Fabrication-A (688012 CH)</a> and <a href="https://www.smartkarma.com/entities/shenzhen-transsion-holding-a" target="_blank" data-smartkarma-citation="entities:30323:1" rel="noopener">Shenzhen Transsion Holding-A (688036 CH).</a></p>
<p>The deletions are <a href="https://www.smartkarma.com/entities/hebei-iron-steel-co-ltd-a" target="_blank" data-smartkarma-citation="entities:11538:1" rel="noopener">Hebei Iron &amp; Steel Co Ltd A (000709 CH)</a>, <a href="https://www.smartkarma.com/entities/sichuan-tianqi-lithium-industries-inc" target="_blank" data-smartkarma-citation="entities:5698:1" rel="noopener">Sichuan Tianqi Lithium Industries, Inc (002466 CH)</a>, <a href="https://www.smartkarma.com/entities/zhejiang-idc-fluid-control-co-ltd" target="_blank" data-smartkarma-citation="entities:18695:1" rel="noopener">STO Express (002468 CH)</a>, <a href="https://www.smartkarma.com/entities/avic-helicopter-co-ltd-a" target="_blank" data-smartkarma-citation="entities:14380:1" rel="noopener">Avic Helicopter Co Ltd A (600038 CH)</a>, <a href="https://www.smartkarma.com/entities/tbea-co-ltd-a" target="_blank" data-smartkarma-citation="entities:20303:1" rel="noopener">Tbea Co Ltd A (600089 CH)</a>, <a href="https://www.smartkarma.com/entities/shanghai-construction-group-co-ltd" target="_blank" data-smartkarma-citation="entities:17136:1" rel="noopener">Shanghai Construction Group Co, Ltd. (600170 CH)</a>, <a href="https://www.smartkarma.com/entities/yanzhou-coal-mining-co-ltd" target="_blank" data-smartkarma-citation="entities:24592:1" rel="noopener">Yanzhou Coal Mining (600188 CH)</a>, <a href="https://www.smartkarma.com/entities/shandong-nanshan-aluminum-a" target="_blank" data-smartkarma-citation="entities:3920:1" rel="noopener">Shandong Nanshan Aluminum A (600219 CH)</a>, <a href="https://www.smartkarma.com/entities/hainan-airlines-co" target="_blank" data-smartkarma-citation="entities:24023:1" rel="noopener">Hainan Airlines Co (600221 CH)</a>, <a href="https://www.smartkarma.com/entities/china-avionics-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:11393:1" rel="noopener">China Avionics Systems Co., Ltd. (600372 CH)</a>, <a href="https://www.smartkarma.com/entities/hla-corp-ltd" target="_blank" data-smartkarma-citation="entities:2586:1" rel="noopener">HLA CORP., Ltd. (600398 CH)</a>, <a href="https://www.smartkarma.com/entities/fangda-carbon-new-material-co-ltd" target="_blank" data-smartkarma-citation="entities:14878:1" rel="noopener">Fangda Carbon New Material Co, Ltd. (600516 CH)</a>, <a href="https://www.smartkarma.com/entities/offshore-oil-engineering-co-ltd-a" target="_blank" data-smartkarma-citation="entities:4968:1" rel="noopener">Offshore Oil Engineering A (600583 CH)</a>, <a href="https://www.smartkarma.com/entities/sichuan-chuantou-energy-stock-co-ltd" target="_blank" data-smartkarma-citation="entities:2557:1" rel="noopener">Sichuan Chuantou Energy Stock (600674 CH)</a>, <a href="https://www.smartkarma.com/entities/tonghua-dongbao-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:10358:1" rel="noopener">Tonghua Dongbao Pharmaceutical (600867 CH)</a>, <a href="https://www.smartkarma.com/entities/bank-of-xi-an-co-ltd" target="_blank" data-smartkarma-citation="entities:29936:1" rel="noopener">Bank of Xi'an Co Ltd (600928 CH)</a>, <a href="https://www.smartkarma.com/entities/cnooc-energy-technology-a" target="_blank" data-smartkarma-citation="entities:29941:1" rel="noopener">Cnooc Energy Technology &amp; -A (600968 CH)</a>, <a href="https://www.smartkarma.com/entities/china-film-co-ltd" target="_blank" data-smartkarma-citation="entities:29943:1" rel="noopener">China Film Co Ltd (600977 CH)</a>, <a href="https://www.smartkarma.com/entities/ningbo-port-co-ltd-a" target="_blank" data-smartkarma-citation="entities:9969:1" rel="noopener">Ningbo Port (601018 CH)</a>, <a href="https://www.smartkarma.com/entities/baiyin-nonferrous-group-co-a" target="_blank" data-smartkarma-citation="entities:29955:1" rel="noopener">Baiyin Nonferrous Group Co-A (601212 CH)</a>, <a href="https://www.smartkarma.com/entities/qingdao-port-international-co" target="_blank" data-smartkarma-citation="entities:29958:1" rel="noopener">Qingdao Port International Co (601298 CH)</a>, <a href="https://www.smartkarma.com/entities/red-star-macalline-group-corp" target="_blank" data-smartkarma-citation="entities:26732:1" rel="noopener">Red Star Macalline Group (601828 CH)</a>, <a href="https://www.smartkarma.com/entities/china-coal-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:24607:1" rel="noopener">China Coal Energy (601898 CH)</a>, <a href="https://www.smartkarma.com/entities/bbmg-corporation" target="_blank" data-smartkarma-citation="entities:22769:1" rel="noopener">BBMG Corporation (601992 CH)</a>, <a href="https://www.smartkarma.com/entities/bank-of-guiyang-co-ltd" target="_blank" data-smartkarma-citation="entities:27479:1" rel="noopener">Bank of Guiyang Co Ltd (601997 CH)</a> and <a href="https://www.smartkarma.com/entities/hoshine-silicon-industry-c-a" target="_blank" data-smartkarma-citation="entities:26646:1" rel="noopener">Hoshine Silicon Industry C-A (603260 CH)</a>.</p>
<p>Only 3 of the inclusions have over 1 day of ADV to buy, while there are a lot more deletions that have over 1 day of ADV to sell.</p>
<p>The index universe has also been expanded to include STAR Board stocks that have been listed for over 1 year. The change was implemented at this review (with no advance notice) and will see the inclusion of <a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology Co Ltd (688008 CH)</a>, <a href="https://www.smartkarma.com/entities/china-railway-signal-com-a" target="_blank" data-smartkarma-citation="entities:28237:1" rel="noopener">China Railway Signal &amp; Com-A (688009 CH)</a>, <a href="https://www.smartkarma.com/entities/advanced-micro-fabrication-a" target="_blank" data-smartkarma-citation="entities:30308:1" rel="noopener">Advanced Micro-Fabrication-A (688012 CH)</a> and <a href="https://www.smartkarma.com/entities/shenzhen-transsion-holding-a" target="_blank" data-smartkarma-citation="entities:30323:1" rel="noopener">Shenzhen Transsion Holding-A (688036 CH)</a> into the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a>. </p>

Post market close on Friday, the China Securities Index Company announced the changes to the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) that will be effective after the close of trading on 11 December.
There are 26 inclusions and exclusions in the review with an estimated one-way turnover of 3.87%.
The inclusions are Unigroup Guoxin (002049 CH), Suzhou Dongshan Precision A (002384 CH), Wuhan Guide Infrared Co,Ltd. (002414 CH), Jpmf Guangdong Co Ltd A (002600 CH), Yunnan Chuangxin New Material (002812 CH), Asymchem Laboratories (002821 CH), Jafron Biomedical Co Ltd (300529 CH), Bgi Genomics (300676 CH), China Cssc Holdings Ltd A (600150 CH), Beijing Tiantan Biological Products (600161 CH), JCET Group (600584 CH), Tsingtao Brewery Co Ltd A (600600 CH), Topchoice Medical (600763 CH), Shanghai Baosight Software Co (600845 CH), Jonjee High-Tech Ind.&amp; Com. (600872 CH), Zhongtai Securities Co Ltd (600918 CH), Boc International China Co-A (601696 CH), China Merchants Energy A (601872 CH), Nanjing Securities Co Ltd (601990 CH), Gan&amp;Lee Pharma (603087 CH), Gongniu Group Co Ltd (603195 CH), Beijing Wantai Biological-A (603392 CH), Montage Technology Co Ltd (688008 CH), China Railway Signal &amp; Com-A (688009 CH), Advanced Micro-Fabrication-A (688012 CH) and Shenzhen Transsion Holding-A (688036 CH).
The deletions are Hebei Iron &amp; Steel Co Ltd A (000709 CH), Sichuan Tianqi Lithium Industries, Inc (002466 CH), STO Express (002468 CH), Avic Helicopter Co Ltd A (600038 CH), Tbea Co Ltd A (600089 CH), Shanghai Construction Group Co, Ltd. (600170 CH), Yanzhou Coal Mining (600188 CH), Shandong Nanshan Aluminum A (600219 CH), Hainan Airlines Co (600221 CH), China Avionics Systems Co., Ltd. (600372 CH), HLA CORP., Ltd. (600398 CH), Fangda Carbon New Material Co, Ltd. (600516 CH), Offshore Oil Engineering A (600583 CH), Sichuan Chuantou Energy Stock (600674 CH), Tonghua Dongbao Pharmaceutical (600867 CH), Bank of Xi'an Co Ltd (600928 CH), Cnooc Energy Technology &amp; -A (600968 CH), China Film Co Ltd (600977 CH), Ningbo Port (601018 CH), Baiyin Nonferrous Group Co-A (601212 CH), Qingdao Port International Co (601298 CH), Red Star Macalline Group (601828 CH), China Coal Energy (601898 CH), BBMG Corporation (601992 CH), Bank of Guiyang Co Ltd (601997 CH) and Hoshine Silicon Industry C-A (603260 CH).
Only 3 of the inclusions have over 1 day of ADV to buy, while there are a lot more deletions that have over 1 day of ADV to sell.
The index universe has also been expanded to include STAR Board stocks that have been listed for over 1 year. The change was implemented at this review (with no advance notice) and will see the inclusion of Montage Technology Co Ltd (688008 CH), China Railway Signal &amp; Com-A (688009 CH), Advanced Micro-Fabrication-A (688012 CH) and Shenzhen Transsion Holding-A (688036 CH) into the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX). 

STAR Board: CSI300 Index Rebalance: Rule Change Sees STAR Board Stocks Included

<p>The <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> consists of stocks from the Shanghai Stock Exchange and the Shenzhen Stock Exchange and is one of the most widely tracked A-share indices with passive tracking products listed in multiple markets globally. There are CFFEX listed futures that trade actively as well.</p><p>There were 21 changes to the index at the June review, and we expect up to 24 changes in the December review. Estimated one-way turnover is 4.06% and there are 4 inclusions and 11 deletions that could have more than 1 day of ADV to trade.</p><p>With passive tracking products holding around US$28bn of AUM, plus another US$35bn in open interest on the listed futures, there could be significant moves in the inclusion/exclusion names ahead of the rebalance announcement. There will only be 9-10 trading days between the announcement of the changes and the implementation, so having a pre-position should pay off.</p>

The Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) consists of stocks from the Shanghai Stock Exchange and the Shenzhen Stock Exchange and is one of the most widely tracked A-share indices with passive tracking products listed in multiple markets globally. There are CFFEX listed futures that trade actively as well.There were 21 changes to the index at the June review, and we expect up to 24 changes in the December review. Estimated one-way turnover is 4.06% and there are 4 inclusions and 11 deletions that could have more than 1 day of ADV to trade.With passive tracking products holding around US$28bn of AUM, plus another US$35bn in open interest on the listed futures, there could be significant moves in the inclusion/exclusion names ahead of the rebalance announcement. There will only be 9-10 trading days between the announcement of the changes and the implementation, so having a pre-position should pay off.

CSI300 Index Rebalance Preview: 21 Changes in June, Could Be 24 in December

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<div>
<p>After <a href="https://www.smartkarma.com/entities/oriental-watch-holdings" target="_blank" data-smartkarma-citation="entities:19950:1" rel="noopener">Oriental Watch (398 HK)</a> ("OWH") was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0831/2020083100161.pdf" target="_blank" rel="noopener">suspended</a> <em>"pursuant to the Codes on Takeovers and Mergers and Share Buy-backs</em>", the immediate takeaway was to conclude the company would be subject to a Privatization Offer. But in what is becoming increasingly more common, OWH has announced a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0914/2020091400003.pdf" target="_blank" rel="noopener">partial buyback</a> from the company - 14.55% of shares out or 83mn shares, at HK$3.00/share, a 53.85% premium to last close.</p>
</div>
<div>
<p>This will cost the company HK$0.25bn (US$32mn). OWH had net cash on hand of ~HK$0.65bn as at Mar 2020.</p>
</div>
<div>
<p>Yeung Ming Biu &amp; concert parties hold 30.85% of shares out and will not tender. That leaves 69.15% of the register subject to the buyback, implying a minimum pro-ration of 21.04%.</p>
</div>
<div>
<p>Should the partial buyback complete (i.e. fully exercised) Yeung &amp; concert parties will hold 36.10% of shares out, before the exercise of any outstanding share options. That step-up in %-held oversteps Hong Kong's "creeper rule", and therefore Independent Shareholders are required, by way of a special resolution (75% vote), to approve a whitewash waiver such that Wong is not obligated to make a general offer for shares not held. </p>
</div>
<div>
<p>As always, more below the fold. Plus<em><strong> Ye Olde Arb Grids</strong></em>.  </p>
</div>


After Oriental Watch (398 HK) ("OWH") was suspended "pursuant to the Codes on Takeovers and Mergers and Share Buy-backs", the immediate takeaway was to conclude the company would be subject to a Privatization Offer. But in what is becoming increasingly more common, OWH has announced a partial buyback from the company - 14.55% of shares out or 83mn shares, at HK$3.00/share, a 53.85% premium to last close.


This will cost the company HK$0.25bn (US$32mn). OWH had net cash on hand of ~HK$0.65bn as at Mar 2020.


Yeung Ming Biu &amp; concert parties hold 30.85% of shares out and will not tender. That leaves 69.15% of the register subject to the buyback, implying a minimum pro-ration of 21.04%.


Should the partial buyback complete (i.e. fully exercised) Yeung &amp; concert parties will hold 36.10% of shares out, before the exercise of any outstanding share options. That step-up in %-held oversteps Hong Kong's "creeper rule", and therefore Independent Shareholders are required, by way of a special resolution (75% vote), to approve a whitewash waiver such that Wong is not obligated to make a general offer for shares not held. 


As always, more below the fold. Plus Ye Olde Arb Grids.  


Oriental Watch (398 HK): Conditional Partial Offer

China

Red Star Macalline Group Corporation Limited operates a network of specialist home improvement segment and home furnishing shopping malls across China.

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Red Star Macalline Group Corp (1528 HK)

A/H Premium Weekly: Industrial Sector at 52 Week High

Top sectors in terms of WoW A/H increase were consumer staple, health care and industrial. We also highlight top three stocks for A/H increase:...

Ke Yan, CFA, FRM

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

There are 36 inclusions/ 29 exclusions for the Hang Seng Composite Index. 9 stocks will be deleted from the Stock Connect Buy list & there are a...

Brian Freitas

STAR Board: CSI300 Index Rebalance: Rule Change Sees STAR Board Stocks Included

There are 26 inclusions/exclusions from the CSI300 index with a one way turnover of 3.87%. An expansion of the universe has 4 STAR Board stocks...

Brian Freitas

CSI300 Index Rebalance Preview: 21 Changes in June, Could Be 24 in December

There could be 24 changes to the CSI300 index at the December review with an estimated one-way turnover of 4.06%. 4 inclusions and 11 deletions are...

Brian Freitas

Oriental Watch (398 HK): Conditional Partial Offer

After Oriental Watch (398 HK) was suspended "pursuant to the Codes on Takeovers and Mergers and Share Buy-backs", the immediate takeaway as the...

David Blennerhassett

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