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

Johor Plantations Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/johor-plantations-group" target="_blank" data-smartkarma-citation="entities:40828:1" rel="noopener">Johor Plantations Group (2368120D MK)</a> raised around US$156m in its Malaysia IPO. The IPO consisted of both primary and secondary shares.</li>
<li>Johor Plantations Group (JPG) is an upstream oil palm plantation firm operating predominantly in Johor, Malaysia.</li>
<li>We have covered various aspects of the deal in our previous notes. In this note, we will talk about the demand and trading dynamics.</li>
</ul>



Johor Plantations Group (2368120D MK) raised around US$156m in its Malaysia IPO. The IPO consisted of both primary and secondary shares.
Johor Plantations Group (JPG) is an upstream oil palm plantation firm operating predominantly in Johor, Malaysia.
We have covered various aspects of the deal in our previous notes. In this note, we will talk about the demand and trading dynamics.


Johor Plantations IPO Trading - Mediocre Sub Rates, Although Cornerstones Could Provide Stability

<ul>
<li>
<a href="https://www.smartkarma.com/entities/johor-plantations-group" target="_blank" data-smartkarma-citation="entities:40828:1" rel="noopener">Johor Plantations Group (2368120D MK)</a> is looking to raise US$156m in its Malaysia IPO. The IPO will consist of both primary and secondary shares.</li>
<li>Johor Plantations Group (JPG) is an upstream oil palm plantation firm operating predominantly in Johor, Malaysia.</li>
<li>In this note, we look at the updates since, and share our thoughts on valuation.</li>
</ul>



Johor Plantations Group (2368120D MK) is looking to raise US$156m in its Malaysia IPO. The IPO will consist of both primary and secondary shares.
Johor Plantations Group (JPG) is an upstream oil palm plantation firm operating predominantly in Johor, Malaysia.
In this note, we look at the updates since, and share our thoughts on valuation.


Johor Plantations IPO - ASPs to Remain Resilient, Downside Appears Limited

<ul>
<li>
<a href="https://www.smartkarma.com/entities/johor-plantations-group" target="_blank" data-smartkarma-citation="entities:40828:1" rel="noopener">Johor Plantations Group (2368120D MK)</a> is looking to raise around US$180m in its upcoming Malaysia IPO.</li>
<li>Johor Plantations Group (JPG) is an upstream oil palm plantation firm operating predominantly in Johor, Malaysia.</li>
<li>In this note, we look at the firm’s past performance.</li>
</ul>



Johor Plantations Group (2368120D MK) is looking to raise around US$180m in its upcoming Malaysia IPO.
Johor Plantations Group (JPG) is an upstream oil palm plantation firm operating predominantly in Johor, Malaysia.
In this note, we look at the firm’s past performance.


Johor Plantations Pre-IPO - Assets in Prime Yield Stage But Industry Isn’t Really Expected to Grow

Forensic Analyst

Jason Yap, CFA

Equity Bottom-Up

Crude Palm Oil (CPO) plantation stocks have lagged the rally in CPO prices, as well as other commodity stocks.  Investors have been generally cautious of chasing the CPO rally via plantation stocks even as CPO prices breach new record highs. Market concerns derive from the probability that CPO prices may be in bubble territory and could reverse when supply-side disruptions rebalance. Further, high CPO prices and increased availability of substitute edible oils (such as soybean and sunflower oil) as the latter enters production season could weigh on CPO demand, which has otherwise remained resilient due to strong demand in key markets such as India and China.  The Bursa Malaysia plantation index, which tracks the performance of 43 listed planters on Bursa Malaysia, has lost 6.3% year to date, while CPO benchmark prices surged more than 46% over the same period.  Malaysian plantation stocks trade at 18 times price to earnings while regional ones trade at around 11 times price to earnings, which approximates historical lows.On a brighter note, Indonesia recently announced the downward revision in palm oil export levies, which encourages exports and should be viewed positively by investors. Could this be the catalyst that the overlooked palm plantation sector needs? In this Insight, we examine the following key factors: <ul>
<li>CPO sector overview</li>
<li>supply and demand equation </li>
<li>Investment Catalyst - Indonesia's Export Levies  </li>
<li>historical and current correlation between share price and CPO benchmark price  </li>
<li>comparables and valuation</li>
</ul>We conclude the article with recommendations for investment opportunities in the sector.

Crude Palm Oil (CPO) plantation stocks have lagged the rally in CPO prices, as well as other commodity stocks.  Investors have been generally cautious of chasing the CPO rally via plantation stocks even as CPO prices breach new record highs. Market concerns derive from the probability that CPO prices may be in bubble territory and could reverse when supply-side disruptions rebalance. Further, high CPO prices and increased availability of substitute edible oils (such as soybean and sunflower oil) as the latter enters production season could weigh on CPO demand, which has otherwise remained resilient due to strong demand in key markets such as India and China.  The Bursa Malaysia plantation index, which tracks the performance of 43 listed planters on Bursa Malaysia, has lost 6.3% year to date, while CPO benchmark prices surged more than 46% over the same period.  Malaysian plantation stocks trade at 18 times price to earnings while regional ones trade at around 11 times price to earnings, which approximates historical lows.On a brighter note, Indonesia recently announced the downward revision in palm oil export levies, which encourages exports and should be viewed positively by investors. Could this be the catalyst that the overlooked palm plantation sector needs? In this Insight, we examine the following key factors: 
CPO sector overview
supply and demand equation 
Investment Catalyst - Indonesia's Export Levies  
historical and current correlation between share price and CPO benchmark price  
comparables and valuation
We conclude the article with recommendations for investment opportunities in the sector.

Crude Palm Oil (CPO) - Which Plantation Stock Could Crush Its Competition?

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

<a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> made an offer to acquire <a href="https://www.smartkarma.com/entities/ijm-corp-bhd" target="_blank" data-smartkarma-citation="entities:16784:1" rel="noopener">Ijm Corp Bhd (IJM MK)</a>/IJMC’s entire stake in <a href="https://www.smartkarma.com/entities/ijm-plantations-bhd" target="_blank" data-smartkarma-citation="entities:12967:1" rel="noopener">Ijm Plantations (IJMP MK)</a>/IJMP for RM3.10 per share in cash, subject to potential dividend adjustments. The offer price is a 26% premium to the unaffected price of RM2.46 per share (prior to the trading halt on 8 June).IJMC is IJMP’s largest shareholder and owns 494.9 million shares, representing 56.2% of outstanding shares. The proposed acquisition implies a cost of RM1.53 billion ($371.7 million). KLK’s offer is subject to IJMC’s acceptance and execution of the definitive agreement (SPA) on or before 5.00 p.m. on 11 June 2021 or such a mutually extended date, failing which the offer will lapse. IJMC has stated that is agreeable to finalise the terms with KLK to meet the offer deadline. IJMP is listed on the Main Markets of Bursa Malaysia. In Malaysia, the threshold for triggering a mandatory general offer (MGO) is the offeror and concert parties owning 33% or more of the voting shares. If the SPA becomes unconditional, KLK will be required to extend a mandatory general offer to acquire all the remaining IJMP shares for a cash offer price of RM3.10 per share, subject to potential dividend adjustments.  <div class="content-highlight">A key condition precedent for the SPA is approval by both IJMC and KLK shareholders at their respective EGMs. We think that the deal should gain EGM approval as it is attractive to both IJMC and KLK shareholders. Overall, at the last close price, the downside risk is low (trading close to break price) with a good probability of upside (SPA becoming unconditional).  </div>

Kuala Lumpur Kepong (KLK MK) made an offer to acquire Ijm Corp Bhd (IJM MK)/IJMC’s entire stake in Ijm Plantations (IJMP MK)/IJMP for RM3.10 per share in cash, subject to potential dividend adjustments. The offer price is a 26% premium to the unaffected price of RM2.46 per share (prior to the trading halt on 8 June).IJMC is IJMP’s largest shareholder and owns 494.9 million shares, representing 56.2% of outstanding shares. The proposed acquisition implies a cost of RM1.53 billion ($371.7 million). KLK’s offer is subject to IJMC’s acceptance and execution of the definitive agreement (SPA) on or before 5.00 p.m. on 11 June 2021 or such a mutually extended date, failing which the offer will lapse. IJMC has stated that is agreeable to finalise the terms with KLK to meet the offer deadline. IJMP is listed on the Main Markets of Bursa Malaysia. In Malaysia, the threshold for triggering a mandatory general offer (MGO) is the offeror and concert parties owning 33% or more of the voting shares. If the SPA becomes unconditional, KLK will be required to extend a mandatory general offer to acquire all the remaining IJMP shares for a cash offer price of RM3.10 per share, subject to potential dividend adjustments.  A key condition precedent for the SPA is approval by both IJMC and KLK shareholders at their respective EGMs. We think that the deal should gain EGM approval as it is attractive to both IJMC and KLK shareholders. Overall, at the last close price, the downside risk is low (trading close to break price) with a good probability of upside (SPA becoming unconditional).  

IJM Plantations’ Potential MGO from Kuala Lumpur Kepong

Malaysia

Sime Darby Plantation Berhad produces and distributes agricultural products. The Company offers palm oil, fats products, oleochemicals, rubber, lubricants, ozone acids, glycerine, and fatty acids, as well as provides vegetable farming and cattle rearing services. Sime Darby Plantation serves customers in Asia.

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Sime Darby Plantation Bhd (SDPL MK)

Johor Plantations IPO Trading - Mediocre Sub Rates, Although Cornerstones Could Provide Stability

Johor Plantations Group (2368120D MK) raised around US$156m in its Malaysia IPO. In this note, we will talk about the demand and trading dynamics.

Clarence Chu

Johor Plantations IPO - ASPs to Remain Resilient, Downside Appears Limited

Johor Plantations Group (2368120D MK) is looking to raise US$156m in its Malaysia IPO. In this note, we look at the updates since, and share our...

Clarence Chu

Johor Plantations Pre-IPO - Assets in Prime Yield Stage But Industry Isn’t Really Expected to Grow

Johor Plantations has launched its bookbuild to raise US$156m in its Malaysia IPO. Books are expected to close on 24th June 2024, with listing...

Clarence Chu

Crude Palm Oil (CPO) - Which Plantation Stock Could Crush Its Competition?

CPO plantation stocks have lagged the rally in CPO prices and investors have stayed on the sidelines. However, we believe investor concerns are...

Jason Yap, CFA

IJM Plantations’ Potential MGO from Kuala Lumpur Kepong

KLK MK made an offer to acquire IJMC’s entire stake in IJMP for RM3.10 per share in cash, subject to potential dividend adjustments. If the SPA...

Arun George

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