In today’s briefing:
- Life Insurance Corp of India (LIC) IPO: Offering Details and Index (Fast) Entry
- S&P/ASX Index Rebalance Preview (March 2022): A Busy Rebalance Across Indices
- Crown Resorts (CWN AU): And Blackstone (Almost) Has It; Index Implications
- Alibaba (BABA): Overly Impacted, Accumulate Before 3Q22 Result
- SMC (6273) Buyback – Small Short Sharp
Life Insurance Corp of India (LIC) IPO: Offering Details and Index (Fast) Entry
- Life Insurance Corp of India (1248Z IN) filed its Draft Red Herring Prospectus (DRHP) with SEBI yesterday to raise between INR 630bn to INR 750bn selling 316.25m shares.
- The stake sale will value the company at between US$161bn-215bn. At the low end, LIC will be the third largest company in India, and the largest at the upper end.
- LIC should get Fast Entry to the MSCI India index while FTSE inclusion could take place at the September SAIR. NIFTY Index (NIFTY INDEX) inclusion could take place in September.
S&P/ASX Index Rebalance Preview (March 2022): A Busy Rebalance Across Indices
- There are just 3 trading days to go in the review period for the March rebalance of the S&P/ASX family of indices. There will be plenty of changes.
- We see one change for the ASX20, one change for the ASX50, up to four changes for the ASX200 and up to 15 adds/11 deletes for the ASX300.
- There will be a large impact from passive trading on quite a few stocks. There will be same way flow on some stocks from the FTSE AW/AC trackers.
Crown Resorts (CWN AU): And Blackstone (Almost) Has It; Index Implications
- Crown and Blackstone have entered a Scheme Implementation Deed under which Blackstone will acquire all shares in Crown Resorts at a cash price of A$13.1/share.
- Crown Resorts closed at A$12.64/share on 14 February. Assuming the cash payment is received by mid June , the return is 3.64% absolute and 10.92% annualised.
- Seven Group Holdings (SVW AU) could be added to the S&P/ASX 100 Index in May, while the merged HDN AU/ AVN AU entity could be added to the S&P/ASX 200.
Alibaba (BABA): Overly Impacted, Accumulate Before 3Q22 Result
- The stock price declined to a very low level before the market fell.
- The Chinese e-commerce market is still promising despite of the high comparison base last year.
- We believe the stock has an upside of 68% for March 2023.
SMC (6273) Buyback – Small Short Sharp
- SMC Corp (6273 JP) announced better Q3 and an upward revision to still-below consensus for this year. Consensus is for up-and-to-the-right the next few years (but implied Q4 looks light).
- The company raised its dividend so now it is 1% yield.
- And the company announced a small but intriguing buyback. If you own the stock or trade in the space, it is worth understanding
Before it’s here, it’s on Smartkarma
