In today’s briefing:
- Taiwan Top 50 ETF Rebalance: One Change Expected in June
- Rakuten US$2.4bn Placement – Recent Updates and Comparison to past Deals
- Quiddity Leaderboard TDIV Jun 23: Five Changes and US$922mn One-Way Flows
- Nippon Prologis (3283 JP) Offering: Lower Premium Vs Peers than Last Time
- Quiddity Leaderboard T50/100 Jun 23: One T50 Change and Four T100 Changes (With TDIV Implications)
- Nucleus Clyde/Curtis Banks: Update
Taiwan Top 50 ETF Rebalance: One Change Expected in June
- Today was the review cutoff for the June rebalance of the Yuanta/P-Shares Taiwan Top 50 ETF. We see one potential change at the review.
- Passive trackers are estimated to buy nearly 6 days of ADV on Pegatron Corp (4938 TT) while selling around 1.7 days of ADV on Silergy Corp (6415 TT).
- Short interest on Pegatron Corp (4938 TT) has continued to drop as the stock has moved higher; Silergy Corp (6415 TT)‘s short interest has risen as the stock has dropped.
Rakuten US$2.4bn Placement – Recent Updates and Comparison to past Deals
- Rakuten (4755 JP) aims to raise up to US$2.4bn (JPY323bn) via a global offering.
- We have covered various aspects of the deal in our earlier notes, see here and here.
- In this note, we will talk about the updates since our last note, as well as the performance of some of the past large primary raises in Japan.
Quiddity Leaderboard TDIV Jun 23: Five Changes and US$922mn One-Way Flows
- In this insight, we take a look at Quiddity’s flow expectations for the June 2023 index rebalance.
- I currently see 5 ADDs/DELs. Some of these names are different from the ones I specified in my previous insight.
- I have also discussed some long-short trading ideas involving names with significant flow implications.
Nippon Prologis (3283 JP) Offering: Lower Premium Vs Peers than Last Time
- Japan’s largest logistics REIT Nippon Prologis Reit (3283 JP) (“NPR”) announced a US$183mn follow-on equity offering to fund their recent acquisition of a logistics facility.
- The primary offer quantity will be 86,851 units out of which 51,090 units and 35,761 units are expected to be allocated for domestic and international investors, respectively.
- 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.
Quiddity Leaderboard T50/100 Jun 23: One T50 Change and Four T100 Changes (With TDIV Implications)
- In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the June 2023 Rebalance.
- I see one change for the T50 index and four changes for the T100 index.
- Even though our standalone flow expectations for the T100 index is insignificant, there is one name with important flow consequences in June 2023.
Nucleus Clyde/Curtis Banks: Update
- Deal remains subject to approvals from FCA, PRA, SRA and clearance by CMA. Curtis said the scheme will likely be delayed until Q3 2023. There’re potential antitrust and tech integration issues.
- Curtis trades at 15x Fwd P/E and the spread has widened to 7.7%. Some event-driven funds are cashing in partially while others are taking advantage of the blip.
- I think there’s still a reasonably good chance of a deal happening (implied c.68%), but considering issues in recent situations (Wood, EMIS, THG, even Caverion), investors’ concerns can be understood.
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