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

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:803:1" rel="noopener">Seven Group Holdings (SVW AU)</a> and <a href="https://www.smartkarma.com/entities/lake-resources-nl" target="_blank" data-smartkarma-citation="entities:14597:1" rel="noopener">Lake Resources Nl (LKE AU)</a> could be added the S&amp;P/ASX100 Index and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200</a> respectively next week following the privatisation of <a href="https://www.smartkarma.com/entities/crown-resorts-ltd" target="_blank" data-smartkarma-citation="entities:808:1" rel="noopener">Crown Resorts (CWN AU)</a>. </li>
<li>Then we have the <a href="https://www.smartkarma.com/entities/tabcorp-holdings-ltd" target="_blank" data-smartkarma-citation="entities:6837:1" rel="noopener">Tabcorp Ltd (TAH AU)</a> spinoff in May that will add to the changes at the regular rebalance in June for the indices.</li>
<li>Short interest has spiked on <a href="https://www.smartkarma.com/entities/lake-resources-nl" target="_blank" data-smartkarma-citation="entities:14597:1" rel="noopener">Lake Resources Nl (LKE AU)</a> and <a href="https://www.smartkarma.com/entities/core-lithium-ltd" target="_blank" data-smartkarma-citation="entities:14712:1" rel="noopener">Core Lithium Ltd (CXO AU)</a> recently following the huge rally in the stocks.</li>
</ul>



Seven Group Holdings (SVW AU) and Lake Resources Nl (LKE AU) could be added the S&amp;P/ASX100 Index and S&amp;P/ASX 200 respectively next week following the privatisation of Crown Resorts (CWN AU). 
Then we have the Tabcorp Ltd (TAH AU) spinoff in May that will add to the changes at the regular rebalance in June for the indices.
Short interest has spiked on Lake Resources Nl (LKE AU) and Core Lithium Ltd (CXO AU) recently following the huge rally in the stocks.


S&P/ASX Index Rebalance Preview: Potential Changes in May & June

<ul>
<li>A KKR led consortium has made a conditional, non-binding, indicative proposal to acquire 100% of the shares in <a href="https://www.smartkarma.com/entities/ramsay-health-care-ltd" target="_blank" data-smartkarma-citation="entities:673:1" rel="noopener">Ramsay Health Care (RHC AU)</a> at A$88/share in cash.</li>
<li>The offer values <a href="https://www.smartkarma.com/entities/ramsay-health-care-ltd" target="_blank" data-smartkarma-citation="entities:673:1" rel="noopener">Ramsay Health Care (RHC AU)</a> at A$20.14bn and is a premium of 36.7% to the last close. The premium is over 30% even using longer term VWAPs.</li>
<li>There will be changes to the S&amp;P/ASX family of indices to maintain the number of index members. We will know more once an indicative timeline is published.</li>
</ul>


A KKR led consortium has made a conditional, non-binding, indicative proposal to acquire 100% of the shares in Ramsay Health Care (RHC AU) at A$88/share in cash.
The offer values Ramsay Health Care (RHC AU) at A$20.14bn and is a premium of 36.7% to the last close. The premium is over 30% even using longer term VWAPs.
There will be changes to the S&amp;P/ASX family of indices to maintain the number of index members. We will know more once an indicative timeline is published.


Ramsay Health Care (RHC AU): Indicative Proposal from KKR & Index Implications

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>The S&amp;P/ASX Index family is a widely-tracked group of indices and sub-indices which represent the performance of ASX-listed companies. </li>
<li>In June 2022, Index rebalance events will take place for the S&amp;P/ASX capitalization-weighted indices including ASX 200, ASX 100, ASX 50, and ASX 20.</li>
<li>In this insight, we take a look at the leading candidates who could become Adds/Deletes during the June 2022 Rebalance and other potential irregular changes.</li>
</ul>


The S&amp;P/ASX Index family is a widely-tracked group of indices and sub-indices which represent the performance of ASX-listed companies. 
In June 2022, Index rebalance events will take place for the S&amp;P/ASX capitalization-weighted indices including ASX 200, ASX 100, ASX 50, and ASX 20.
In this insight, we take a look at the leading candidates who could become Adds/Deletes during the June 2022 Rebalance and other potential irregular changes.


S&P/​​​ASX Indices: Quiddity Leaderboard for June 2022 Rebalance

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.

Equity Capital Markets

Coronado Global Resources Inc / Equity Capital Markets

<div>
<p><a href="https://www.smartkarma.com/entities/27473" target="_blank" data-smartkarma-citation="entities:27473:1" rel="noopener">Coronado Global Resources Inc (CRN AU)</a> aims to raise around US$180m via a mix of an insti placement and entitlement offer.</p>
<p><span>We had covered the IPO in 2018:</span></p>
</div><div><ul>
<li><a href="https://www.smartkarma.com/insights/coronado-global-resources-ipo-quick-valuations-update-big-gap-in-coal-price-expectations" target="_blank" rel="noopener">Coronado Global Resources IPO - Quick Valuations Update - Big Gap in Coal Price Expectations</a></li>
<li><a href="https://www.smartkarma.com/insights/coronado-global-resources-ipo-stable-assets-great-yield-but-its-also-likely-to-be-the-peak-yield" target="_blank" rel="noopener">Coronado Global Resources IPO - Stable Assets, Great Yield but Its Also Likely to Be the Peak Yield</a></li>
<li><a href="https://www.smartkarma.com/insights/coronado-global-resources-ipo-trading-update-yield-will-cap-downside" target="_blank" rel="noopener">Coronado Global Resources IPO - Trading Update - Yield Will Cap Downside</a></li>
</ul></div><div><p>The shares haven't exactly been on a tear since then.</p></div>


Coronado Global Resources Inc (CRN AU) aims to raise around US$180m via a mix of an insti placement and entitlement offer.
We had covered the IPO in 2018:

Coronado Global Resources IPO - Quick Valuations Update - Big Gap in Coal Price Expectations
Coronado Global Resources IPO - Stable Assets, Great Yield but Its Also Likely to Be the Peak Yield
Coronado Global Resources IPO - Trading Update - Yield Will Cap Downside
The shares haven't exactly been on a tear since then.

Coronado Global Placement - Calling Back Some of the Generous Dividends

APAC IPOs & Placements

Zhen Zhou, Toh

<p>Farallon Capital is looking to sell 95m shares of <a href="https://www.smartkarma.com/entities/whitehaven-coal-ltd" target="_blank" data-smartkarma-citation="entities:14253:1" rel="noopener">Whitehaven Coal (WHC AU)</a>. Post-placement, Farallon Capital will still hold about 51m shares, representing about 5% of total outstanding shares.</p><p>The deal scores poorly on our framework owing to expensive valuation, poor earnings momentum and the large deal size. There will likely be near-term overhang as Farallon will likely come back on to the market to sell. There was also no mentions of lock-up on Farallon's remaining stake which represents about 7 days of three-month ADV.</p>

Farallon Capital is looking to sell 95m shares of Whitehaven Coal (WHC AU). Post-placement, Farallon Capital will still hold about 51m shares, representing about 5% of total outstanding shares.The deal scores poorly on our framework owing to expensive valuation, poor earnings momentum and the large deal size. There will likely be near-term overhang as Farallon will likely come back on to the market to sell. There was also no mentions of lock-up on Farallon's remaining stake which represents about 7 days of three-month ADV.

Whitehaven Coal Placement - More to Be Sold

Australia

Whitehaven Coal Limited mines and sells metallurgical and thermal coals to the global steel, power generation, and metallurgical industries.

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Whitehaven Coal (WHC AU)

S&P/ASX Index Rebalance Preview: Potential Changes in May & June

There could be one change in May followed by a bunch of changes in June. SVW and LKE could be added on 3 May following CWN's privatisation. TAH's...

Brian Freitas

Ramsay Health Care (RHC AU): Indicative Proposal from KKR & Index Implications

A KKR led consortium has made a conditional, non-binding, indicative proposal to acquire 100% of Ramsay Health Care (RHC AU) at A$88/share in cash....

Brian Freitas

S&P/ASX Indices: Quiddity Leaderboard for June 2022 Rebalance

A discussion on potential ADDs and DELETEs to the S&P ASX Indices between now and the completion of the June 2022 Regular Rebalance.

Janaghan Jeyakumar, CFA

Coronado Global Placement - Calling Back Some of the Generous Dividends

Coronado Global Resources Inc (CRN AU) aims to raise around US$180m via a mix of an insti placement and entitlement offer. We had covered the IPO...

Sumeet Singh

Whitehaven Coal Placement - More to Be Sold

Farallon Capital is looking to sell 95m shares of Whitehaven Coal (WHC AU). Post-placement, Farallon Capital will still hold about 51m shares,...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

S&P/ASX Index Rebalance Preview: Potential Changes in May & June

There could be one change in May followed by a bunch of changes in June. SVW and LKE could be added on 3 May following CWN's privatisation. TAH's...

Brian Freitas

Ramsay Health Care (RHC AU): Indicative Proposal from KKR & Index Implications

A KKR led consortium has made a conditional, non-binding, indicative proposal to acquire 100% of Ramsay Health Care (RHC AU) at A$88/share in cash....

Brian Freitas

S&P/​​​ASX Indices: Quiddity Leaderboard for June 2022 Rebalance

A discussion on potential ADDs and DELETEs to the S&P ASX Indices between now and the completion of the June 2022 Regular Rebalance.

Janaghan Jeyakumar, CFA

Coronado Global Placement - Calling Back Some of the Generous Dividends

Coronado Global Resources Inc (CRN AU) aims to raise around US$180m via a mix of an insti placement and entitlement offer. We had covered the IPO...

Sumeet Singh

Whitehaven Coal Placement - More to Be Sold

Farallon Capital is looking to sell 95m shares of Whitehaven Coal (WHC AU). Post-placement, Farallon Capital will still hold about 51m shares,...

Zhen Zhou, Toh

S&P/ASX Indices: Quiddity Leaderboard for June 2022 Rebalance