In today’s briefing:
- ECM Weekly (14th Oct 2024) – Tokyo Metro, Rigaku, Hyundai, China Res, Swiggy, USS, Akeso, Shiyue
- Brazilian Airlines – Liability Management Even More Crucial Following BRL Weakness
- Ocean Wilsons Holdings – Confirmation of interest in Wilson Sons holding
ECM Weekly (14th Oct 2024) – Tokyo Metro, Rigaku, Hyundai, China Res, Swiggy, USS, Akeso, Shiyue
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the live IPOs front, the two Japanese IPOs, Tokyo Metro (9023 JP) and Rigaku Holdings (268A JP) appeared attractively priced. The same couldn’t be said about Hyundai Motor India.
- On the placements front, there were deals in Hong Kong, Japan and India.
Brazilian Airlines – Liability Management Even More Crucial Following BRL Weakness
- Azul and GOL running with liability positions over double LATAM – convergence required to ensure financial sustainability.
- Azul’s USD-denominated liabilities continue to weigh heavily, suggesting profitability and full balance sheet clean up distant prospects despite lessor re-negotiations.
- GOL’s Chapter 11 process needs to focus on balance sheet recalibration – BRL weakness may require recalibration.
Ocean Wilsons Holdings – Confirmation of interest in Wilson Sons holding
Ocean Wilsons Holdings’ (OCN’s) H124 results showed good growth, reflecting a strong performance from Wilson Sons and a positive performance from the investment portfolio (OWIL). While the strategic review remains ongoing, in August the company announced that it is in discussions with I Squared that may or may not lead to an offer for its holding in Wilson Sons (BOVESPA: PORT3). Despite the review and the potential for value realisation, OCN still trades at a c 40% discount to our valuation of 2,275p/share.