Recent trading highlights of Emperador

Hot on the heels of the secondary listing of Nio : NIO 0%, the secondary listing of Emperador : EMI 0% debuted on the Singapore Exchange on Jul 14. Emperador is a prominent high-growth international spirits company with a deep portfolio of globally recognised, market-leading whisky and brandy brands distributed in over 100 countries.

Since its debut, Emperador has gained 8 per cent to $0.47 as at close on Jul 28, and the stock has ranked just outside the top decile of the most traded Singapore stocks by turnover. Since listing on Jul 14, the stock has seen close to S$22 million of total trading turnover, which averages to S$2 million a day. Despite being a secondary venue, the average daily turnover of the Singapore listing has traded at a level that represents 95 per cent of the primary market screen liquidity.

As seen with Nio, the consistency of Emperador’s trading turnover has also supported a relatively tight spread between the best bid and best offer price throughout the past trading sessions. Since listing, Emperador averaged a 1 tick spread at 0.005 cents between the highest bid and lowest offer price. Relative to the prevailing price of the stock, this represented a 110 basis point (bps) spread. The average top order book depth of the Singapore listing has been S$190,000, compared to total order book depth of S$110,000 for the Philippines listing.

During the overlapping trading hours between Singapore and the Philippines, the SGX listing of Emperador has traded at an aggregate 2 per cent discount. As shares are fungible across both trading venues, investors may be able to deploy arbitrage strategies between Singapore and the Philippines to capitalise on the price differences. The cross-border shares transfer process typically takes place within 2 business days under normal circumstances and investors do need to contact their brokers for more information on the cost and procedures.

Hours that the Singapore listing is open for continuous trading that the primary listing in the Philippines is closed include 9 am to 9.30 am, 1 pm to 1.30 pm and between 3 pm and 5 pm.

At a market cap of over S$7 billion, Emperador counts Singapore sovereign wealth fund GIC, through Arran, a key investor with a 9.5 per cent deemed interest in the company as of December 2021. Its potential inclusion in FTSE global indices during the upcoming September review has also attracted interest from international investors.

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Emperador’s portfolio of whiskies and brandies features more than 300 years of heritage comprising some of the world’s bestselling brandies by volume and some of the most iconic single malt Scotch whiskies. Its whisky portfolio comprises some of the most recognised single malts including Dalmore, Jura, and Tamnavulin, which are among the top 20 single malts in the world. Emperador maintains production facilities comprising distilleries, blending, and bottling facilities, vineyards, and a glass manufacturing plant located across the Philippines, the United Kingdom, Spain, and Mexico.

Emperador also believes its Asian identity allows it to understand Asian consumers better and deliver based on Asian preferences as compared to other western spirits giants who brought their brands to China. Its tailored efforts in China and other Asian markets have proven to be successful as they were able to overtake some long-standing brands in just a few years.

In 2021, Emperador recorded normalised net profit growing 34 per cent year on year on the back of revenues that grew 5.9 per cent driven by the brandy and whisky segments. The company noted that despite headwinds from Covid-19, its stellar 2021 performance was made possible by the strong brand equities of its products, as consumers continued to seek out its products.