In today’s briefing:
- Socionext (6526 JP): Index Inclusion Timeline
- GLP J-Reit (3281 JP): Offering Could Trigger Outperformance Vs Peers
- True/DTAC: NBTC’s Last Roll Of The Dice?
- HK Connect: Sep ’22 Inclusion Post-Event Analysis
- PTB Group (PTB AU): 16 Nov Scheme Meeting. IE Says Fair
- SillaJen Trade Resumption: Day Trading Setup Betting on Shooting Star Pattern
- DTAC/True Merger: NBTC Set to Decide on the Merger on 20 October
- GLP J-REIT Placement – Most of the past Deals Have Done Well, This One Could Be Tricky
Socionext (6526 JP): Index Inclusion Timeline
- Socionext (6526 JP) traded 15.1% higher than its IPO price on listing day. That gives it a market cap of JPY 141.4bn (US$963m).
- Socionext (6526 JP) will be added to the TPX INDEX in November and could be added to the MSCI SmallCap Index in February and the FTSE All-Cap Index in June.
- The close yesterday indicates there could be more buying behind while the TOPIX inclusion in November will be a source of short-term demand for the stock.
GLP J-Reit (3281 JP): Offering Could Trigger Outperformance Vs Peers
- Today after the close, large-cap logistics JREIT GLP J-REIT (3281 JP) (“GLP”) announced a follow-on equity offering to fund part of their recently-announced property acquisition.
- The primary offer quantity is 215,962 units. In addition, there will also be an over-allotment quantity of 5,809 units. The total size of this offering could be roughly ¥33bn (~US$227mn).
- Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.
True/DTAC: NBTC’s Last Roll Of The Dice?
- With near-on nine-month having lapsed since True Corp Pcl (TRUE TB) and Total Access Communication (DTAC TB) submitted an amalgamation report, the NBTC may conclude/clarify a sweeping resolution today.
- That resolution, prompted by DTAC and True, is expected to establish the NBTC has no authority to consider approving or rejecting the merger, although remedial measures may be enforced.
- Further rumours abound as I type that the NBTC decision may be delayed another week.
HK Connect: Sep ’22 Inclusion Post-Event Analysis
- After one month from the September batch of Hong Kong Connect inclusion, we provide an analysis on the stock inclusion for 12 stocks.
- We analysed the inclusion by performance post announcement, performance post inclusion, inflows and analyst coverage.
- We continued to observed outperformance post the HSCI announcement but not the actual inclusion despite the fact that southbound inflows has a significant impact on the trading volume.
PTB Group (PTB AU): 16 Nov Scheme Meeting. IE Says Fair
- Back on the 18 August, aviation engine repair play PTB Group (PTB AU) entered into a Scheme Implementation Deed with PAG Holding, at $1.595/share, a 40.5% premium to last close.
- The Scheme Booklet has now been lodged with ASIC. The Independent Expert reckons the Offer is fair and reasonable.
- The Scheme Meeting will be held on the 16 November, as previously flagged in August’s SID, with an expected implementation on the 9 December.
SillaJen Trade Resumption: Day Trading Setup Betting on Shooting Star Pattern
- We should pay attention to two significant flows. INFLOW: Covering of those holding short positions & OUTFLOW: Rebalancing of local PASSIVEs that failed to remove SillaJen.
- Osstem, which was in a similar situation, showed this shooting star pattern on its trade resumption day. Of course, this setup will work limitedly because SillaJen is shorting-restricted.
- Nevertheless, SillaJen will likely show this pattern more dramatically in the shooting phase as its short interest is more than three times that of Osstem.
DTAC/True Merger: NBTC Set to Decide on the Merger on 20 October
- The NBTC Board has confirmed that it will decide on the DTAC/True merger on 20 October as it will receive yet another report from consultants on 14 October.
- The Bangkok Post reported today that NBTC would conclude that it has no authority to consider approving or rejecting the deal but will issue measures to govern it.
- The current share price ratio of 8.873x vs implied swap ratio of 10.221x is the lowest since the announcement of the potential VTO. Buy the share price ratio.
GLP J-REIT Placement – Most of the past Deals Have Done Well, This One Could Be Tricky
- GLP J-REIT (3281 JP) is looking to raise around US$220m in its placement to acquire five assets, and increase its stake in a sixth one.
- We have covered a number of past deals by the company, almost all of which have done well.
- In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
