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>Dar Al-Handasah has sold 19% of <a href="https://www.smartkarma.com/entities/worleyparsons-ltd" target="_blank" data-smartkarma-citation="entities:178:1" rel="noopener">WorleyParsons Ltd (WOR AU)</a> overnight at A$14.35/share, a 12% discount to the last close, to raise A$1.44bn (US$943m).</li>
<li>This reduces Dar's stake in <a href="https://www.smartkarma.com/entities/worleyparsons-ltd" target="_blank" data-smartkarma-citation="entities:178:1" rel="noopener">WorleyParsons Ltd (WOR AU)</a> to 4.5% and will trigger upweights from index providers in the next few days.</li>
<li>The stake sale could also lead to a re-rating of the stock with a large blocking stake off the share register.</li>
</ul>


Dar Al-Handasah has sold 19% of WorleyParsons Ltd (WOR AU) overnight at A$14.35/share, a 12% discount to the last close, to raise A$1.44bn (US$943m).
This reduces Dar's stake in WorleyParsons Ltd (WOR AU) to 4.5% and will trigger upweights from index providers in the next few days.
The stake sale could also lead to a re-rating of the stock with a large blocking stake off the share register.


Worley (WOR): Impact of Dar Group's A$1.4bn Sale

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

WorleyParsons Ltd / Equity Capital Markets

<ul>
<li>DAR Group is looking to raise A$1.5bn (US$983m) from selling the majority of its stake in <a href="https://www.smartkarma.com/entities/worleyparsons-ltd" target="_blank" data-smartkarma-citation="entities:178:1" rel="noopener">WorleyParsons Ltd (WOR AU)</a>.</li>
<li>DAR had attempted to privatize Worley in late 2016. Failing that attempt, it has been adding to its stake over the years.</li>
<li>As the deal isn't a cleanup, there will be an overhang post-deal, although its a relatively small one at just 4.5% of DAR's remaining stake; locked up for 30 days</li>
</ul>


DAR Group is looking to raise A$1.5bn (US$983m) from selling the majority of its stake in WorleyParsons Ltd (WOR AU).
DAR had attempted to privatize Worley in late 2016. Failing that attempt, it has been adding to its stake over the years.
As the deal isn't a cleanup, there will be an overhang post-deal, although its a relatively small one at just 4.5% of DAR's remaining stake; locked up for 30 days


Worley Placement - Largest Shareholder Selling at an Attractive Discount

<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>'s holding in <a href="https://www.smartkarma.com/entities/boral-ltd" target="_blank" data-smartkarma-citation="entities:1487:1" rel="noopener">Boral Ltd (BLD AU)</a> continues to increase and that could lead to an index change at the June rebalance, if not earlier.</li>
<li>The <a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake Resources (SLR AU)</a>/ <a href="https://www.smartkarma.com/entities/red-5-ltd" target="_blank" data-smartkarma-citation="entities:7940:1" rel="noopener">Red 5 Ltd (RED AU)</a> merger could lead to an index change early June.</li>
<li>
<a href="https://www.smartkarma.com/entities/cie-de-saint-gobain" target="_blank" data-smartkarma-citation="entities:21547:1" rel="noopener">Cie De Saint-Gobain (SGO FP)</a>'s acquisition of <a href="https://www.smartkarma.com/entities/csr-ltd" target="_blank" data-smartkarma-citation="entities:17380:1" rel="noopener">CSR Ltd (CSR AU)</a> could lead to another index change just ahead of the regular June rebalance.</li>
</ul>



Seven Group Holdings (SVW AU)'s holding in Boral Ltd (BLD AU) continues to increase and that could lead to an index change at the June rebalance, if not earlier.
The Silver Lake Resources (SLR AU)/ Red 5 Ltd (RED AU) merger could lead to an index change early June.

Cie De Saint-Gobain (SGO FP)'s acquisition of CSR Ltd (CSR AU) could lead to another index change just ahead of the regular June rebalance.


ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/monadelphous-group-ltd" target="_blank" data-smartkarma-citation="entities:553:1" rel="noopener">Monadelphous (MND AU)</a> will be added to the S&amp;P ASX 200 Index on 16 December 2022.</li>
<li>This is not a surprise. It has been the lead contender for a December ADD slot since the day after the September rebalance was completed (see <a href="https://www.smartkarma.com/insights/s-p-asx-quiddity-leaderboard-dec-22-top-ranked-asx200-adds-look-interesting" target="_blank" rel="noopener">here</a>).</li>
<li>There is a fair bit of volume to buy, and there are pair trades to do.</li>
</ul>



Monadelphous (MND AU) will be added to the S&amp;P ASX 200 Index on 16 December 2022.
This is not a surprise. It has been the lead contender for a December ADD slot since the day after the September rebalance was completed (see here).
There is a fair bit of volume to buy, and there are pair trades to do.


Monadelphous (MND AU) Is The S&P ASX 200 ADD - There's a Trade Here

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Jun 28th (reported today) which has an aggregated short interest worth USD19.5bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Macquarie, Westpac, CSL, Pro Medicus, Yancoal Australi, Telstra, Insurance Australia.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Jun 28th (reported today) which has an aggregated short interest worth USD19.5bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Macquarie, Westpac, CSL, Pro Medicus, Yancoal Australi, Telstra, Insurance Australia.


ASX Short Interest Weekly (Jun 28th): Macquarie, Westpac, CSL, Pro Medicus, Yancoal Australia

Australia

Matrix Composites & Engineering Ltd. is an engineering company. The Company specialises in the design, application and manufacturing of products based on advanced composite materials, engineering plastics and elastomers.

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

Viva Energy Group Limited markets petroleum products. The Company focuses on making, importing, and delivering the fuels, lubricants, chemicals, and bitumen. Viva Energy Group serves the mining, aviation, and marine industries in Australia.

New Hope Corporation Limited is a thermal coal production company based in Australia. The Company also has interests in logistics and infrastructure operations in Australia as well.

Paladin Energy Ltd operates as a mining company. The Company explores and mines uranium. Paladin Energy serves customers worldwide.

Beach Energy Limited explores for, develops, and produces oil and natural gas. The Company holds interests in exploration and production tenements in Australia, USA, Egypt, Tanzania and Papua New Guinea.

Washington H. Soul Pattinson & Company Limited is an investment holding company. The Company owns shares and properties, coal mining, bulk handling, commercial television licensee, telecommunications carrier, merchant banking, funds management, pharmaceutical retailing, manufacture, processing and marketing of biscuits and cakes.

Washington H. Soul Pattinson and Co. Ltd (SOL AU)

Stanmore Coal Ltd. explores for coal in Australia. The Company's interests include a portfolio of coal assets within Queensland's Bowen and Surat Basin coal provinces.

Emerald Resources NL is an oil and gas exploration company with exploration activities in the United States and Australia.

Karoon Energy Ltd operates as an exploration company. The Company explores and acquires oil and gas exploration assets. Karoon Energy serves customers worldwide.

Patterson-UTI Energy, Inc. provides land-based drilling services to major and independent oil and natural gas companies.  The Company conducts drilling operations in Texas, New Mexico, Utah, Oklahoma, Louisiana, and western Canada. Patterson-UTI is also involved in pressure pumping, oil and gas exploration and production, and drilling and completion fluids services.

Tidewater Inc. provides offshore supply vessels and marine support services to the offshore energy exploration, development, and production industry. The Company tows and anchor-handles mobile drilling rigs and equipment, transports supplies and personnel, and supports pipe laying and other offshore construction activities.

Valaris Limited provides offshore contract drilling services. The Company owns, operates, and manages rig fleets and provides drilling services. Valaris serves customers worldwide.

Transocean Ltd. is an offshore drilling contractor.  The Company owns or operates mobile offshore drilling units, inland drilling barges, and other assets utilized in the support of offshore drilling activities worldwide. Transocean specializes in technically demanding segments of the offshore drilling business, including deepwater and harsh environment drilling services.

Yantai Jereh Oilfield Services Group Co., Ltd develops, manufactures and sells oil field equipment.  The Company's products include well cementing equipment, well fracturing equipment, and natural gas compression and transportation equipment.

Subsea 7 SA offers oilfield services.  The Company designs, fabricates, builds and installs equipment for the offshore oil industry.  Subsea 7 builds flexible flowlines, risers, umbilicals and other equipment.  The Company operates in the Gulf of Mexico, the Asia Pacific region, the North Sea and the Mediterranean; and offshore Africa, the Middle East, and South America.

China Oilfield Services Limited provides oilfield services. The Company provides geophysical prospecting, drilling, oilfield technology development, and other services. China Oilfield Services also operates transportation businesses.

Helmerich & Payne, Inc. provides contract drilling of oil and gas wells in the Gulf of Mexico and South America. The Company operates land rigs and platform rigs.

Offshore Oil Engineering Co., Ltd. provides offshore oil engineering services, including designing, construction, installation, and repair and maintenance services.  The Company's main businesses include oil/gas exploration engineering, subsea pipeline laying, oil/gas field equipment testing and maintenance, as well as pressure container and steel structure manufacturing.

Archrock, Inc. operates as a natural gas contract compression services company. The Company offers natural gas compression and aftermarket services, as well as provides used equipment for oil and gas industry. Archrock serves customers in the United States.

WorleyParsons Limited provides professional services through alliance and integrated service contracts to the energy, resource and complex process industries.  The Company provides its services to industrial sectors such as oil and gas refining, petrochemicals and chemicals, minerals and metals, power and water and industrial and infrastructure.

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WorleyParsons Ltd (WOR AU)

Worley (WOR): Impact of Dar Group's A$1.4bn Sale

Dar Group has sold a 19% stake in Worley to raise A$1.44bn. This will trigger passive buying and short covering and could lead to a re-rating of...

Brian Freitas

Worley Placement - Largest Shareholder Selling at an Attractive Discount

DAR Group is looking to raise A$1.5bn (US$983m) from selling the majority of its stake in WorleyParsons Ltd (WOR AU). The deal here would be a...

Clarence Chu

ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance

Upcoming M&A activity will result in ad hoc inclusions to the ASX200 prior to the June rebal. There could be 2-3 adds in the first few weeks of...

Brian Freitas

Monadelphous (MND AU) Is The S&P ASX 200 ADD - There's a Trade Here

Mining services company Monadelphous (MND AU) is the S&P ASX 200 ADD, as expected. There should be 4.8mm shares to buy - 12+ days of ADV. There's a...

Travis Lundy

ASX Short Interest Weekly (Jun 28th): Macquarie, Westpac, CSL, Pro Medicus, Yancoal Australia

We analyzed ASX short interest report for the past week and highlight short interest changes in Macquarie, Westpac, CSL, Pro Medicus, Yancoal...

Ke Yan, CFA, FRM

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