In today’s briefing:
- Lendlease Global Offering to Buy the Rest of JEM – Big Deal, Cheap, Cheaper Than Peers
- GoTo Vs Bukalapak Vs Grab Vs Sea
- Bukalapak IPO Lock-Up – Scattered Shareholding Could Put Some Pressure on the Share Price
- JD.com Tencent Distribution – Updates on the Now US$15bn Overhang and the Prosus Angle
- Doosan Corp Placement – Large Deal but Price Momentum Has Been Solid
- Ruchi Soya Placement – Almost Akin to a Relisting
- Ferretti IPO: Things Have Gotten Worse Since Previous Attempt to List in Milan
Lendlease Global Offering to Buy the Rest of JEM – Big Deal, Cheap, Cheaper Than Peers
- In mid-February, Lendlease Global Commercial REIT (LREIT SP) which owned 31.8% of the Jurong East MRT Station “Jem” complex announced it would buy the rest.
- They announced they would issue new equity to pay for some of it. Predictably, the units fell, and fell vs Office/Retail Mixed-Use SREIT peers.
- Now you can buy units of Singapore asset quality, acceptable leverage, high divi and something well cheap of peer-measured fair.
GoTo Vs Bukalapak Vs Grab Vs Sea
- GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It has extended its book build for a $1.3 billion IPO to 24 March.
- In GoTo Gojek Tokopedia IPO: Valuation Insights, we noted that our valuation analysis suggests that the price range is aggressive and unattractive.
- In this note, we compare GoTo vs Bukalapak (BUKA IJ), Grab (GRAB US) and Sea Ltd (SE US)‘s relevant businesses across GTV, take rates and segmental margins.
Bukalapak IPO Lock-Up – Scattered Shareholding Could Put Some Pressure on the Share Price
- Bukalapak (Buka) raised US$1.5bn in Aug 2021 when it priced its IPO at the top end of its pricing range.
- Buka is an Indonesian e-commerce company. The company operates an online consumer-to-consumer (C2C) marketplace. It also operates Mitra Bukalapak (Mitra) which provides online-to-offline (O2O) services to MSMEs.
- The pre-IPO shareholders will be released from the lockup on 6th April 2022.
JD.com Tencent Distribution – Updates on the Now US$15bn Overhang and the Prosus Angle
- On 23rd Dec 2021, Tencent declared a special interim dividend in the form of a distribution in specie of 457.326m Class A ordinary shares of JD.com.
- While Tencent went ex-div on 20th Jan 2022, the actual settlement of the distribution is expected to happen on or about 25th Mar 2022.
- In this note, we talk about the updates since our last note and have a closer look at Prosus and its possible motivation/intention with its JD.com stake.
Doosan Corp Placement – Large Deal but Price Momentum Has Been Solid
- Park Yong-maan, Park Seo-won and Park Jae-won are looking to sell down their stakes in Doosan Corp (000150 KS) . The share sale will be a cleanup.
- In our view, the deal should bode well for the current management, giving them free rein in management coupled with the share sale being a clean-up.
- In this note, we will talk about the firm’s track record and run the deal through our ECM framework.
Ruchi Soya Placement – Almost Akin to a Relisting
- Ruchi Soya Industries (RSI IN) is looking to raise up to US$560m via a follow-on public offer.
- The deal is almost akin to a relisting, as the free float was just at 1% prior to this deal.
- Given the tight float, instead of discussing its track record , we will discuss the timeline of events leading up to the deal, past performance and undertake a peer comparison/valuation.
Ferretti IPO: Things Have Gotten Worse Since Previous Attempt to List in Milan
- The Italian luxury yacht maker, Ferretti SpA (FER IM) , has filed for an IPO on the Hong Kong Stock Exchange and plans to raise net proceeds of around US$272m.
- The company previously filed for an IPO in Milan in 2019 targeting a market value of around EUR1.8bn (US$1.2bn), which was scrapped claiming a “weak market”.
- Ferretti’s revenues suffered with COVID-19 and ongoing issues such as the Ukraine-Russia war and China-US trade tensions would only put further pressure on the company.
Before it’s here, it’s on Smartkarma
