In today’s briefing:
- ANZ Bank (ANZ AU) Nixes MYOB, Yeas SunCorp Bank, To Raise A$3.5bn of Equity
- ANZ Renounceable Entitlement Offer – Dilute Now, Accrete Later. Still Appears Better than MYOB
- SoCar IPO – Refiling Updates – Latest Earnings Do Not Change Investment Thesis
- Air Closet Files for IPO
- Super Hi Spin-Off: Unexciting Fundamentals
ANZ Bank (ANZ AU) Nixes MYOB, Yeas SunCorp Bank, To Raise A$3.5bn of Equity
- Australia and New Zealand Banking Group (ANZ) (ANZ AU) this morning made a flurry of announcements. First and foremost, ANZ withdrew from discussions on MYOB.
- Q3 earnings ended 30 June saw revenue +5%, lending up 3%yoy, markets revenue +7%, NIM up 3bp (rising rates helps). Basel3 APRA Level2/Level1 CET1 Ratios were 11.1%/10.4%.
- But the big news: ANZ is buying SunCorp Bank from SunCorp (SUN AU) for A$4.9bn (1.3x NTA), and will raise A$3.5bn through a 1 for 15 renounceable rights offering.
ANZ Renounceable Entitlement Offer – Dilute Now, Accrete Later. Still Appears Better than MYOB
- ANZ aims to raise around US$2.4bn (A$3.5bn) via a renounceable entitlement offer to part fund the purchase of Suncorp Bank.
- In our view, neither the fundraising nor the acquisition appear to be particularly well flagged. ANZ’s withdrawal from MYOB talks might be the most positive thing about the announcement.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
SoCar IPO – Refiling Updates – Latest Earnings Do Not Change Investment Thesis
- SOCAR (403550 KS) is looking to raise up to US$157m in its upcoming Korea IPO.
- SoCar is a Korean car sharing business which aims to become an all-in-one mobility solutions provider beyond car sharing, with approximately 80% domestic market share in the car sharing space.
- The firm remains loss-making with no signs of being profitable in the near/medium term. In this note, we will take a look at its refiling updates.
Air Closet Files for IPO
- Subscription rental services have become increasingly mainstream and the earlier start ups are now maturing into larger businesses. One of the first, Air Closet, plans an IPO later this month.
- Air Closet specialises in renting out clothing from major labels but also in taking away the burden of choice by arranging for styles to be picked in-house.
- As well as this growing service, Air Closet has also just launched a rental service for gadgets ranging from kitchen appliances to cameras.
Super Hi Spin-Off: Unexciting Fundamentals
- Haidilao International announced the spin-off plan of its overseas arm, Super Hi.
- We take a quick look at Super Hi’s fundamentals. We think it is unlikely for Super Hi to achieve the level of economy of scale as Haidilao in China.
- We think the valuation of Super Hi should be compared to F&B peers in the ASEAN region given that its business is mainly focused on the ASEAN region.
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