In today’s briefing:
- Two Trading Opportunities from LG Chem’s Stake Sale in LG Energy Solution
- Canon Strikes Again. One Buyback Done, Another Begins. Shareholder Structure STILL Matters
- Syngenta IPO – Index Entry Possibilities
- MOG Digitech (1942 HK): What the Flow Is Going On?
- Amara Holdings Gains On Possible Offer
Two Trading Opportunities from LG Chem’s Stake Sale in LG Energy Solution
- This issue offers two trading opportunities. The first is the passive inflow resulting from an increase in the float rate. The second is the possibility of additional stake sales.
- It will provide LG Energy with a passive inflow of 760K shares (₩426.4 billion), which is a significant passive impact at approximately 3.2x ADTV.
- There would be further stake sales of LG Chem’s shares in LG Energy. LG Chem plans to pursue additional stake sales targeting local institutional investors.
Canon Strikes Again. One Buyback Done, Another Begins. Shareholder Structure STILL Matters
- Canon Inc (7751 JP) has, as discussed in these pages, conducted 18 buybacks since the GFC. Every single one is ¥50bn. They are short and sharp. The longest? 23 days.
- The most recent took 18 days, and was only 15% of ADV, significantly lower than the average of the last dozen at 23-24%.
- This time, 3 days after the finished they launched another. The stock popped 5% the first day. There’s a reason for that. Shareholder structure STILL matters a lot.
Syngenta IPO – Index Entry Possibilities
- Syngenta AG (SYNN SW) has passed the listing committee meeting to raise CNY 65bn (US$9.1bn) in a Main Board listing on the Shanghai Stock Exchange.
- We forecast Syngenta AG (SYNN SW) will be added to the SSE180 Index, SSE50 Index and the CSI 300 Index (SHSZ300 INDEX) indices at the December rebalance.
- Inclusion in the SSE A Share Index could take a year and that will hold up inclusion in Northbound Stock Connect and consequently in global indices.
MOG Digitech (1942 HK): What the Flow Is Going On?
- MOG Holdings (1942 HK) has been skyrocketing in price since the start of the year. Remarkably, there is little change in the number of shares that trade daily.
- MOG Holdings (1942 HK) has a market cap of US$6.44bn and trades at a modest Price/Sales ratio of 75x and an equally modest Price to Book Value of 89.5x.
- Liquidity has improved to the point where the stock could be added to some indices. However, there is a precedent of stocks not being added following market participant feedback.
Amara Holdings Gains On Possible Offer
- Hotel and investment property play Amara Holdings (AMA SP) announced that its controlling shareholders are in discussions with a third party in relation to a possible transaction.
- Shares up for grabs controlled by the Teo family are estimated to exceed 65% of shares out.
- No price was mentioned. And there is no guarantee a firm Offer will unfold. Shares have gained 38% in the past three trading sessions.
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