IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/sembcorp-industries-ltd" target="_blank" data-smartkarma-citation="entities:1087:1" rel="noopener">Sembcorp Industries (SCI SP)</a> and <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> have jointly announced a two-step transaction. First, SMM will be recapitalised through a renounceable underwritten rights issue - 5 SMM rights shares for every 1 existing SMM share at S$0.20 per SMM rights share. Post the rights issue, SMM will own 60.9% to 69.9% of SMM share outstanding (at the SMM maximum rights issue shares scenario). Second, SMM will be demerged from SCI through a distribution in specie of the SMM shares held by SCI post completion of the rights issue.</p><div class="content-highlight"><p>At SMM’s last close price of S$0.62, the TERP is S$0.270 per SMM share. The transaction requires approval from both SCI and SMM shareholders. Overall, we think it is a good deal for both sets of shareholders. In particular, despite the 37% jump in SCI shares, we think there remains upside to SCI shares. </p></div>

Sembcorp Industries (SCI SP) and Sembcorp Marine (SMM SP) have jointly announced a two-step transaction. First, SMM will be recapitalised through a renounceable underwritten rights issue - 5 SMM rights shares for every 1 existing SMM share at S$0.20 per SMM rights share. Post the rights issue, SMM will own 60.9% to 69.9% of SMM share outstanding (at the SMM maximum rights issue shares scenario). Second, SMM will be demerged from SCI through a distribution in specie of the SMM shares held by SCI post completion of the rights issue.At SMM’s last close price of S$0.62, the TERP is S$0.270 per SMM share. The transaction requires approval from both SCI and SMM shareholders. Overall, we think it is a good deal for both sets of shareholders. In particular, despite the 37% jump in SCI shares, we think there remains upside to SCI shares. 

Sembcorp Industries/Sembcorp Marine Rights Issue and Demerger