Singapore

• Institutions were net buyers of Singapore stocks over the five trading sessions through to May 30, with S$108.4 million of net institutional inflow, as 20 primary-listed companies conducted buybacks by way of market acquisition with a total consideration of S$37.9 million.
• Meanwhile Mapletree Pan Asia Commercial Trust, Singapore Airlines, Mapletree Logistics Trust, Jardine Cycle & Carriage, CapitaLand Ascendas Reit, Sembcorp Industries, UOL Group, Jardine Matheson Holdings, Mapletree Industrial Trust, and Keppel Reit led the net institutional outflow over the five sessions.
• In addition to the 9.3 per cent interest that the Tang group owns in ARA H-Trust, the proposed acquisition increases the Tangs’ holding in ARA H-Trust to 28.3 per cent.

• For the month of May 2024, 10 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6.6bn.
• The average premium for the new transactions announced (or first discussed) in May was ~60%. The average premium YTD is ~46%. Japan is well up yoy. Hong Kong is down.
• This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.

• Singapore-based startup Thrixen, which develops a diagnostics platform for infectious diseases, has secured funding, its co-founder and CEO Shavit Clein announced in a LinkedInpost.
• The investors are 22Health Ventures, an early-stage healthtech investment firm and biotech company Aldevron’s co-founder John Ballantyne.
• The development was first reported by The Business Times, which pegged the funding amount at US$7 million. The capital will be used to advance the development of its diagnostic technology platform.

• Rize, a Singapore-based agritech startup, has secured US$14 million in a series A funding round co-led by Breakthrough Energy Ventures, GenZero, Temasek, and Wavemaker Impact.
• The company plans to use the funds to boost its presence in other markets like Indonesia and Vietnam.
• It also aims to increase its team of agronomy experts to over 100. Rize’s platform gathers key agricultural information needed for sustainable farming.

• On 27 May, the STI closed at 3,318.45, its highest close since August 2023.
• STI stocks within the Real Estate Management and Development sector – Hongkong Land, City Developments and UOL Group – all booked net institutional inflow while averaging 7.1% total returns.
• 10 Real Estate (Ex-REITs) stocks that booked most net institutional inflow since 16 April Code Mkt Cap S$M YTD ADT S$M YTD NIF S$M YTD TR % 17 April – 27 May NIF / Mkt Cap 16 April – 27 May TR % Sector.

• The $2.50/share Exit Offer announced last month seemed fair. Not great, but okay. Best World International (BEST SP)‘s founders Dora Hoan and Doreen Tan have now blinked, and bumped. 
• Terms are S$2.56/share – best & final.  The increase in the Exit Offer price followed “a review of its most recent financial and cash position“. More likely, shareholder pushback.
• Elsewhere, nephews and siblings of Hoan, bought shares just prior to the initial Offer announcement; and have been selling since. Not a great look. 

• An overlooked old economy sector in Asia ripe for a comeback
• Industry dynamics will provide  a long-term tailwind for the company
• Opportunity created by  deletion from an index and corporate restructuring

• Singapore-based Linnovate Partners, an asset servicing and fintech company for the alternative investment industry, has received a US$40 million funding commitment led by Temasek-owned SeaTown Private Capital Master Fund.
• This capital infusion will enable Linnovate to scale operations and drive innovation.
• Henry Lin, founder and CEO of Linnovate Partners, said: “This investment will be instrumental in accelerating our growth trajectory, providing us with the necessary resources to enhance our service offering, and continue delivering cutting-edge solutions to our clients and the industry itself.”

• Singapore-based beauty brand Allies of Skin is set to expand into the US after raising a US$20 million funding round from Meaningful Partners.
• This follows the company hitting positive EBITA in 2023, its founder Nicolas Travis told Tech in Asia.
• Allies of Skin, founded in 2016, said the round is its first institutional raise, but it has received private investments in the past – including capital from Crazy Rich Asians star Henry Golding.

• Grab, a Singapore-based technology company offering ride-hailing transport, food delivery, and payment solutions, leveraged its vast user base of more than 2 million drivers and 63 million downloads in the fourth quarter of 2021.
• Its financial performance for the first quarter of 2024 shows strong growth in several key areas, such as its delivery and mobility services, its financial services, and its strategic initiatives to sustain and generate growth.
• In the first quarter of 2024, Grab’s revenue grew by 24% year over year and 29% in constant currency terms, reaching $653 million.

• Companies handle anywhere from 1,000 to 100,000 documents in various formats on a monthly basis, and they usually rely on manual processes due to the unstructured nature of the data, says Paul Santos, managing partner at Wavemaker Partners.
• To speed this up, Wavemaker Partners has invested in Staple, a Singapore-based startup that applies AI to provide document processing solutions.
• The VC firm has led a US$4 million pre-series A funding round in the startup, which can process various document types across over 200 languages.

• AEM, UMS, NetLink and Baker Tech directors acquire stock On May 20, OUE announced a proposed off-market purchase of up to 84,038,036 shares representing 10 per cent of the total number of shares in issue.
• This increased her direct interest to 1.74 million shares, which represents 0.03 per cent of the company.

• Best World International (BEST SP) has disclosed a revised exit offer which has been declared final. The S$2.56 offer is a modest 2.4% premium to the previous S$2.50 offer. 
• The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).
• The revised offer remains underwhelming. However, the headcount test risk is lowering as retail seems resigned to accepting it. At the last close, the gross spread was 2.4%. 

• DBS, OCBC and UOB have booked S$500 million in combined net institutional inflow for the 2024 year through to 23 May.
• Combined net interest income (NII) for the trio was S$8.3 billion in 1QFY24, the sixth consecutive quarter combined NII surpassed S$8.0 billion, and up 46% from the combined S$5.7 billion in 4QFY19.
• This compares to the trio averaging 5.8% total returns for the full 2023 year, with S$2.5 billion of combined net institutional outflow.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Vanke
• Lippo Malls Indonesia Retail Trust

• Top Glove, Medtecs International, UG HealthCare and Riverstone have averaged 24% returns in the month-to-date, partially attributed to the Biden administration announcing higher tariff rates for certain imports from China including PPE items such as respirators and face masks, in addition to rubber medical and surgical gloves.
• This month, Top Glove ADT has surged more than 5-fold from the preceding 4 months.
• As maintained by Top Glove Corporation, gloves have evolved from basic protective gear to sophisticated, technologically advanced products that cater to a wide range of applications.

• Bloomberg reports that KKR and TPG are exploring options, including a buyout of PropertyGuru (PGRU US), and are gauging initial interest from other global investors.
• The favoured privatisation option for US ADRs with the Cayman Islands incorporation is a statutory merger requiring a two-thirds voting approval threshold. 
• The concentrated shareholder register would suggest that TPG/KKR would aim for irrevocable from the other three substantial shareholders, facilitating a modest takeover premium. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Lippo Malls Indonesia Retail Trust

• Grab‘s 1Q2024 reflected strong performance from its deliveries and mobility segments despite seasonal headwinds, with growth driven by new initiatives rather than increased incentives, with affordable products leading.
• The company has launched new products in the premium segment, with advanced bookings improving the most recent initiative, while its saver products are increasing spend, frequency, and retention. 
• Another key feature of the 1Q2024 has been the strong performance of groceries, driven by alliances with retailers, and booking higher growth than food deliveries.