In today’s briefing:
- MVIS Vietnam Index Rebalance: One Add, Two Deletes
- WCP IPO: Valuation Uncompelling
- United Tractors (UNTR IJ) Buyback – One Month To Go
MVIS Vietnam Index Rebalance: One Add, Two Deletes
- Hagl Jsc (HAG VN) is an inclusion while An Phat Holdings (APH VN) and CEO Group (CEO VN) are deletes from the MVIS Vietnam Index at the September rebalance.
- There are a lot of float and capping changes that will result in one-way turnover of 12% and a one-way trade of US$45m.
- There are a lot of stocks that have over 1 day of ADV to trade and there could be opportunities to enter/exit positions on a move in the stocks.
WCP IPO: Valuation Uncompelling
- WCP (WCP KS), a lithium-ion batteries separator company, is set to launch its IPO of KRW900 billion (US$692 million).
- We last discussed the IPO in WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range.
- Although the de-rating of peer multiples resulted in a decline in the syndicate’s intrinsic value, the IPO price range of KRW80,000-100,000 remains unchanged. The IPO price range is unattractive.
United Tractors (UNTR IJ) Buyback – One Month To Go
- In mid-July, United Tractors (UNTR IJ) announced a buyback of up to 5 trillion rupiah, buying back “up to 20% of shares out.”
- In United Tractors (UNTR IJ) Buyback – Sure to Be Impactful I said the buyback would be smaller than the headlines, but still likely quite impactful.
- On Day 1, shares rose 5% to IDR 28,275. Since then the stock is up an additional 22%. Now we have a month left. There may be more juice still.
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