Coles Placement - Wider Discount to Account for Overhang

Coles Group Offers Steady Cash Flows But Little Growth; Initiating With No-Moat and AUD 13.30 FVE

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a> is looking to sell 65.4m shares in <a href="https://www.smartkarma.com/entities/coles-group-ltd" target="_blank" data-smartkarma-citation="entities:27799:1" rel="noopener">Coles Group Ltd (COL AU)</a>. Post selldown, Wesfarners will still have about 10.1% stake in Coles.</p><p>The deal scores well on our framework owing to good short-term momentum, relatively better leverage than peers. However, the deal size is large, representing about 21 days of three-month ADV. </p>

Wesfarmers Ltd (WES AU) is looking to sell 65.4m shares in Coles Group Ltd (COL AU). Post selldown, Wesfarners will still have about 10.1% stake in Coles.The deal scores well on our framework owing to good short-term momentum, relatively better leverage than peers. However, the deal size is large, representing about 21 days of three-month ADV. 

Coles Placement - Selldown from Wesfarmers Expected but Discount Is Narrow at the Top