In today’s briefing:
- EcoPro Materials IPO: The Bull Case
- Have South32 Shares Bottomed Out?
- Valeura Energy (TSE VLE): ~20 mbbl/d production in 2Q23
- Granite Ridge Resources, Inc. – Private Equity Growth Strategy in a Public E&P Company
- Brooge Energy: Why Is GULFNAV Eyeing The Oil Storage & Energy Services Provider?
- Morning Views Asia: Hopson Development, Lenovo, Tata Steel Thailand, West China Cement
EcoPro Materials IPO: The Bull Case
- EcoPro Materials (ECO123 KS) is a leading player in the electrode material industry. It is seeking to raise up to US$500 million in a KRX IPO.
- EcoPro Materials is offering 14.5 million shares at an IPO price range of KRW36,200-46,000 per share. Book building runs from 30 October to 3 November, with pricing on 7 November.
- The bull case rests on attractive addressable markets, aggressive production capacity expansion, ambition to be the leading non-Chinese player, strong revenue growth and improving cash conversion cycle.
Have South32 Shares Bottomed Out?
- South32 is an Australian metal and mining firm spun off from BHP in 2015. Unlike mining majors, South32 holds smaller but concentrated assets.
- Aluminium operations is the firm’s primary revenue source followed by coking coal operations. Coking coal contributes to 32% of the underlying EBITDA.
- With its share price having got battered, South32 stock is compellingly priced relative to MVR ETF paving way for a compelling long-short trade.
Valeura Energy (TSE VLE): ~20 mbbl/d production in 2Q23
- 2Q23 production was 19,961 bbl/d with the difference to our forecast mostly reflecting the timing of drilling.
- Wassana (1.6 mbbl/d production during 2Q23) was offline in 3Q23.
- Our YE24 estimated net cash (~US$450 mm given the late tax restructuring) represents 1.6x the current market cap of the company.
Granite Ridge Resources, Inc. – Private Equity Growth Strategy in a Public E&P Company
Granite Ridge was formed in 2022 to execute a private equity investment strategy in a public company vehicle.
The strategy is to allocate capital to non-operated oil and natural gas development opportunities in order to grow the company’s underlying asset base and support its common stock dividend.
Grey Rock Investment Partners contributed the assets of three investment funds to facilitate Granite Ridge’s business combination transaction with Executive Network Partnering Corporation (ENPC).
Brooge Energy: Why Is GULFNAV Eyeing The Oil Storage & Energy Services Provider?
- This is a special one-time report on Dubai’s premier oil storage and service provider, Brooge Energy.
- This intriguing proposal has surprisingly not elicited a significant uptick in Brooge Energy’s stock price, a phenomenon that has left market watchers and potential investors curious and slightly bewildered.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Morning Views Asia: Hopson Development, Lenovo, Tata Steel Thailand, West China Cement
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.
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