In today’s briefing:
- SBI Affiliate To Buy 45-49% of E-Guardian (6050) In Partial Tender Offer
- Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade
- Alpha Generation Through Share Buybacks in Korea: August & September 2023
- Boustead Plantations (BPLANT MK): A Transaction Mired in Political Debate
- Quiddity A/H Premium Tracker (To Sep28): Hs Suffer Vs As Despite Inflows
- Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2023
- Daiwa Securities Living (8986 JP): Historical Post-Offering Performance Does Not Look Good At All
- Kokusai Electric Pre-IPO – Peer Comparison
- Vertex Technology’s Hybrid Arb
- NIFTY50 Index Rebalance Preview: Two’s Company; Three’s A Crowd
SBI Affiliate To Buy 45-49% of E-Guardian (6050) In Partial Tender Offer
- Today, Change Inc (3962 JP) (30%-owned by SBI Holdings (8473 JP)) announced a Tender Offer to buy 32-36.9% of E-Guardian, followed by a third-party placement to get them to 45-49%.
- Small cap E-Guardian does internet services support, ad processing, cyber security (their fastest growing segment) and top line has been growing.
- The partial offer is big enough to matter, and up 50%. It is worth a look for people who like small cap special sits.
Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade
- Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/P-Shares Taiwan Dividend Plus ETF in December.
- There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.
- There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.
Alpha Generation Through Share Buybacks in Korea: August & September 2023
- In this insight, we discuss the alpha generation through companies that announced share buybacks in Korea in August and September 2023.
- We provide a list of 18 stocks in the Korean stock market that have announced share buyback programs in August and September 2023.
- The top three market cap stocks that have announced share repurchases include Celltrion Inc (068270 KS), Celltrion Healthcare (091990 KS), and KT&G Corporation (033780 KS).
Boustead Plantations (BPLANT MK): A Transaction Mired in Political Debate
- Boustead Plantations (BPLANT MK) shares are down 16%, resulting in proprietary day trading and intraday short selling being suspended. The transaction is mired in political debate.
- The bull case is that Kuala Lumpur Kepong (KLK MK) continues on-market purchases and the opposition will compromise, paving the way for deal completion. Timing is the key risk.
- The bear case is a deal break. The downside is limited as the government will need another buyer, the shares trade below the undisturbed price, and the undemanding valuation.
Quiddity A/H Premium Tracker (To Sep28): Hs Suffer Vs As Despite Inflows
- The Brand-Spanking New (8 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning in pairs over time, etc.
- We used to do it. We brought it back better, with lots of cool interactive tables, and charts, heat maps, and comparative data. And 47 Trade Recommendations.
- The last 7 weeks (since the start of the new Trcker and Portfolio 8 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%.
Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2023
- In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 4Q 2023.
- Of the 38 pair trades, 18 of them involved holdcos outperforming opcos YTD and 20 of them involved opcos outperforming holdcos in the same period.
- We highlight 38 pair trades that involve Korean holdcos and opcos.
Daiwa Securities Living (8986 JP): Historical Post-Offering Performance Does Not Look Good At All
- Midsize residential JREIT Daiwa Securities Living (8986 JP) (“DSLIC“) launched a follow-on equity offering to partially fund their recently-announced acquisitions.
- The primary offer quantity will be 139,047 units and there will also be an over-allotment quantity of 6,953 units.
- In this insight, we take a closer look at the details of this offering and the historical performance of DSLIC’s previous follow-on equity offerings.
Kokusai Electric Pre-IPO – Peer Comparison
- KKR is looking to raise around US$750m via selling a stake in Kokusai Electric (6525 JP) (KE) in its Japan IPO.
- KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
- In our previous notes we have looked at the company’s past performance. In this note, we will undertake a peer comparison.
Vertex Technology’s Hybrid Arb
- Temasek-Backed Vertex Technology Acquisition Corporation (VTAC SP), the first of three SPACs (so far) to list on the SGX, has announced a transaction to buy Taiwanese live-streaming platform, 17Live.
- Assuming the deal completes, potentially by year-end, the merged entity would be valued at ~S$1.16bn.
- All independent shareholders are entitled to redemption rights. That is, you’ll get ~$5 back if redeeming against $4.96/share now. But liquidity is not great. Plus this appears a related-party transaction.
NIFTY50 Index Rebalance Preview: Two’s Company; Three’s A Crowd
- There should be two changes for the NIFTY Index (NIFTY INDEX) in March. That could increase to three, but that would take some big price moves from now to January.
- Impact on the potential changes is pretty large at over 6 days of ADV to trade from passive trackers. The impact is over 11 days of delivery volume.
- Inclusion of Avenue Supermarts Ltd (DMART IN) in the F&O segment before January could lead to another change.
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