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.

Event-Driven

<ul>
<li>BHP shareholders will receive US$18bn worth of Woodside petroleum shares on 1st Jun 2022, post the completion of the merger. Block, worth US$1.5bn, could be sold in early June.</li>
<li>As a part of the distribution, some shares belonging to ineligible and other small shareholders will have to be sold by the sales agent, JPM. </li>
<li>In this note, we will look at the possible deal dynamics and the overall background of the deal.</li>
</ul>


BHP shareholders will receive US$18bn worth of Woodside petroleum shares on 1st Jun 2022, post the completion of the merger. Block, worth US$1.5bn, could be sold in early June.
As a part of the distribution, some shares belonging to ineligible and other small shareholders will have to be sold by the sales agent, JPM. 
In this note, we will look at the possible deal dynamics and the overall background of the deal.


BHP Woodside Distribution - Could Be a Large Block (~US$1bn) In Early June

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Groupe Bruxelles Lambert Sa / Event-Driven

<ul>
<li>Premiums of selected DLC's have generally tightened during December, following the unification of BHP : BHP/BLT 1.3%; Rio Tinto AU/LN, 9.9% (widened); Shell, nil premium.</li>
<li>Discounts to NAV of holdcos have shown mixed performance: Alba, 42.7%; GBL, 30%; Heineken Holdings, 17.9%; Industrivärden, 14.4%; Investor AB, 7.5%; Kinnevik B, 22.4% (premium).</li>
<li>Recommended trades: BHP/BLT, GBL vs. listed assets, Industrivärden vs. listed assets.</li>
</ul>


Premiums of selected DLC's have generally tightened during December, following the unification of BHP : BHP/BLT 1.3%; Rio Tinto AU/LN, 9.9% (widened); Shell, nil premium.
Discounts to NAV of holdcos have shown mixed performance: Alba, 42.7%; GBL, 30%; Heineken Holdings, 17.9%; Industrivärden, 14.4%; Investor AB, 7.5%; Kinnevik B, 22.4% (premium).
Recommended trades: BHP/BLT, GBL vs. listed assets, Industrivärden vs. listed assets.


Selected European Holdcos and DLCs: December '21 Report

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Earlier this week, <a href="https://www.smartkarma.com/entities/royal-dutch-shell-plc" target="_blank" data-smartkarma-citation="entities:22108:1" rel="noopener">Royal Dutch Shell (RDSA LN)</a> announced a plan for 'Unification' of the A and B lines, to be put to shareholder vote in 3 weeks. </li>
<li>The plan entails moving 10 execs to London, changing corporate and tax jurisdiction to the UK. </li>
<li>The question investors should be asking themselves is... Is There A Trade Here?</li>
</ul>


Earlier this week, Royal Dutch Shell (RDSA LN) announced a plan for 'Unification' of the A and B lines, to be put to shareholder vote in 3 weeks. 
The plan entails moving 10 execs to London, changing corporate and tax jurisdiction to the UK. 
The question investors should be asking themselves is... Is There A Trade Here?


Thinking About the Royal Dutch Shell "Unification"

Royal Dutch Shell Plc (Adr) / Event-Driven

<ul>
<li>The unification should deliver multiple benefits, such as facilitating greater flexibility regarding portfolio actions, streamlining corporate decision making,  and a greater pool of liquidity.</li>
<li>With a single share class, not subject to Dutch withholding tax considerations, Shell will be able to execute share the $9 bn buyback programme more quickly.</li>
<li>The spread is too tight to set up a convergence trade, therefore I recommend monitoring the share prices in case any line trades at a higher discount vs. the other.</li>
</ul>


The unification should deliver multiple benefits, such as facilitating greater flexibility regarding portfolio actions, streamlining corporate decision making,  and a greater pool of liquidity.
With a single share class, not subject to Dutch withholding tax considerations, Shell will be able to execute share the $9 bn buyback programme more quickly.
The spread is too tight to set up a convergence trade, therefore I recommend monitoring the share prices in case any line trades at a higher discount vs. the other.


Royal Dutch Shell Share Structure Unification

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>
<a href="https://www.smartkarma.com/entities/royal-dutch-shell-plc-48d2d58c-023d-485f-887d-f13ca5f049f6" target="_blank" data-smartkarma-citation="entities:25197:1" rel="noopener">Royal Dutch Shell (RDSA NA)</a>/ <a href="https://www.smartkarma.com/entities/royal-dutch-shell-plc-48d2d58c-023d-485f-887d-f13ca5f049f6" target="_blank" data-smartkarma-citation="entities:25197:1" rel="noopener">Royal Dutch Shell (RDSA NA)</a> has announced a simplification of its share structure resulting in an increase in the speed and flexibility of capital actions.</li>
<li>The name of the company will change from Royal Dutch Shell plc to Shell plc.  It's expected that the company will no longer meet conditions to use the 'Royal' designation.</li>
<li>The proposed structure will help in conducting buybacks and there could be a quick shareholder payout following the US$7bn sale of Shell's Permian assets in the US.</li>
</ul>



Royal Dutch Shell (RDSA NA)/ Royal Dutch Shell (RDSA NA) has announced a simplification of its share structure resulting in an increase in the speed and flexibility of capital actions.
The name of the company will change from Royal Dutch Shell plc to Shell plc.  It's expected that the company will no longer meet conditions to use the 'Royal' designation.
The proposed structure will help in conducting buybacks and there could be a quick shareholder payout following the US$7bn sale of Shell's Permian assets in the US.


Shell Plc - No Longer Royal Post Simplification

Netherlands

Shell PLC explores and refines petroleum products. The Company produces and imports fuels, chemicals, and lubricants, as well as operates service station networks. Shell serves clients worldwide.

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Shell (RDSA NA)

BHP Woodside Distribution - Could Be a Large Block (~US$1bn) In Early June

BHP shareholders will receive US$18bn worth of Woodside petroleum shares on 1st Jun 2022, post the completion of the merger. Block, worth US$1.5bn,...

Sumeet Singh

Selected European Holdcos and DLCs: December '21 Report

Premiums of selected DLC's have generally tightened during December. Discount to NAV of holdcos have shown mixed trends.

Jesus Rodriguez Aguilar

Thinking About the Royal Dutch Shell "Unification"

Royal Dutch Shell has announced a planned "Unification" to be decided by shareholder vote on 10 December. The goal is to unify the A and B lines to...

Travis Lundy

Shell Plc - No Longer Royal Post Simplification

Royal Dutch Shell is simplifying its share structure by merging its Class A and Class B shares and changing its name to Shell plc. The...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

BHP Woodside Distribution - Could Be a Large Block (~US$1bn) In Early June

BHP shareholders will receive US$18bn worth of Woodside petroleum shares on 1st Jun 2022, post the completion of the merger. Block, worth US$1.5bn,...

Sumeet Singh

Selected European Holdcos and DLCs: December '21 Report

Premiums of selected DLC's have generally tightened during December. Discount to NAV of holdcos have shown mixed trends.

Jesus Rodriguez Aguilar

Thinking About the Royal Dutch Shell "Unification"

Royal Dutch Shell has announced a planned "Unification" to be decided by shareholder vote on 10 December. The goal is to unify the A and B lines to...

Travis Lundy

Royal Dutch Shell Share Structure Unification

The spread is too tight to set up a convergence trade, therefore I recommend monitoring the spread in case any of the lines trades at a higher...

Jesus Rodriguez Aguilar

Shell Plc - No Longer Royal Post Simplification

Royal Dutch Shell is simplifying its share structure by merging its Class A and Class B shares and changing its name to Shell plc. The...

Brian Freitas