In today’s briefing:
- JFE Holdings (5411) Stock+CB Offering
- Mergers, Acquisitions and Potential S&P/ASX Index Ad Hoc Inclusions
- Golden Eagle (3308 HK): CCASS Movements Are Standard Fare
- EQD | NIFTY Index WEEKLY Resistance Analysis
- Hong Kong CEO & Director Dealings (6 Sept): WuXi AppTec, Peking University, FriendTimes
JFE Holdings (5411) Stock+CB Offering
- Today JFE Holdings (5411 JP) announced it would raise ~JPY 121bn in an equity offering of 55mm treasury shares and JPY 90bn in a Convertible Bond offering.
- ¥125bn will be spent on capex for expansion, ¥75bn for capex, investments, and R&D related to decarbonisation, as well as repayment of debt to 2028.
- This is a heavier than a “normal” equity offering. And recent large-ish equity offerings seem to have more volatility in outcome (post-offer overhang, or squeeze) than previous years.
Mergers, Acquisitions and Potential S&P/ASX Index Ad Hoc Inclusions
- There are a bunch of stocks that are constituents of the S&P/ASX family of indices and could go private or merge prior to the next scheduled rebalance in December.
- That will lead to ad hoc inclusions for the S&P/ASX 200 (AS51 INDEX) and could also lead to ad hoc inclusions for the S&P/ASX 50 and S&P/ASX 100 indices.
- There is a fair amount of short interest on some of the potential inclusions and short covering due to index inclusion could take the stocks higher.
Golden Eagle (3308 HK): CCASS Movements Are Standard Fare
- Back on the 28th May, PRC department store play Golden Eagle (3308 HK) announced a privatisation offer, by way of a Scheme, at $6.88/share, a 40.41% premium to last close.
- The Offeror is the Wang family, who together with concert parties, held 80.29%. 7.18% of the 19.71% held by the disinterested stakeholders have given irrevocables in favour of the Scheme.
- Ahead of the Scheme Meeting on September 15th, a significant amount of shares have moved out of CCASS. This is not something to concern investors.
EQD | NIFTY Index WEEKLY Resistance Analysis
- After a -5 weeks correction in August, the NIFTY Index has restarted its Bull run, ongoing from mid-March 2020. Let’s have a look to where MRM WEEKLY resistance levels are.
- The current pattern is BULLISH, the index could rise easily another 2-3 weeks from here.
- Target prices for a reversal (or pullback within the uptrend) are between 19846 -20294
Hong Kong CEO & Director Dealings (6 Sept): WuXi AppTec, Peking University, FriendTimes
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- The key stocks mentioned in this regular insight are WuXi AppTec (2359 HK), Peking University Resources (618 HK), and FriendTimes Inc (6820 HK).
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