In today’s briefing:
- GEM Co., Ltd. GDR Listing – Better Discount than Last Two and Ming Yang Has Held Up
- PKN Orlen/Lotos: Attractive Spread
- Short Names on Our “Workbench”: Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.
- Morning Views Asia: Honghua Group, Tata Steel Thailand
GEM Co., Ltd. GDR Listing – Better Discount than Last Two and Ming Yang Has Held Up
- Gem Co Ltd A (002340 CH) is looking to raise around US$245m in its Swiss GDR listing.
- Proceeds will be used mainly for overseas expansion, such as the development of the Indonesian Nickel Resource Base and development of its production base and recycling center in Europe.
- In terms of discount, relative to the most recent two deals, Keda Industrial and Ningbo Shanshan, GEM’s GDRs are offered at a more enticing 11.7-14.2% discount to its A-shares,
PKN Orlen/Lotos: Attractive Spread
- Shareholders of Polish refiner PKN Orlen approved the proposed takeover of smaller rival Grupa Lotos, bringing Poland closer to creating a national champion better able to compete against global players.
- This takeover has been planned for a long time and could not proceed until the EU gave the green light with a long list of remedies.
- Gross spread (as of 22 July) is 5.63%. Shares of Lotos will cease trading next week. Long 1 LTS PW/short 1.075 PKN PW.
Short Names on Our “Workbench”: Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.
- The following names are “on the workbench”, ie., names we are working on that look interesting from the short side. They are discussed, with charts, in the PDF attached below.
- We like to be as transparent as possible in our short idea generation process.
- Today, we are flagging: Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.
Morning Views Asia: Honghua Group, Tata Steel Thailand
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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