☕️ Cettire shorts torched

Good morning.

Cettire shares soared 79% after auditors signed off on accounts, igniting a massive short squeeze that torched sellers.

Capital Brief’s Jack Derwin reports 11.21% of Cettire’s stock was shorted at the time of the squeeze. And with 60% of shares tied up by just three holders – founder and CEO Dean Mintz, Phil King's Regal Partners, and Connecticut hedge fund Cat Rock –  the stock's limited float drove extreme volatility, adding $400 million to its market cap.

One trading desk called it "serious carnage," telling Derwin they’d never seen anything like it.

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Market movers

Dual-listed gambling company Light & Wonder's shares nosedived on the ASX on Tuesday, after a court ruling against its Dragon Train game, favouring competitor Aristocrat.

L&W insisted the hit is minor, reaffirming its 2025 EBITDA outlook. The market, though, wasn’t convinced.

The quick sync

• Eucalyptus CEO Tim Doyle on the surprise withdrawal of the company’s hyped men’s longevity product Compound and plans for its relaunch. (Capital Brief)

• Scalare Partners' backdoor IPO plan faces VC scepticism amid 'broken' model claims. (Capital Brief)

• Passive funds fuel 33% month-end Treasury trading surge, New York Fed says. (Bloomberg)

• Options traders rush into China rally bets after stimulus, eye FXI, PDD, and Alibaba gains. (Bloomberg)

• Aldi, Metcash to gain as Coles, Woolworths face ACCC lawsuit fallout over ‘fake discounts’. (Capital Brief)(The Australian)

• AustralianSuper, Australian Retirement Trust now manage half of new super inflows, as analysts warn of 'double-edged sword' growth. (AFR)

Trading floor

M&A

• Magellan Financial Group's Airlie Funds is now a major Ampol holder as the firm stabilizes following years of underperformance and management changes. (Capital Brief)

• HPX Group has acquired Salinger Privacy, a privacy consulting firm founded by former NSW deputy privacy commissioner Anna Johnston, betting on growth in the privacy sector. (AFR)

• GCQ Funds Management, a significant investor in Rightmove, has urged the board to engage with REA Group over its $12bn takeover bid. (AFR)

• SG Fleet's major shareholder, Super Group, has halted the sale of its 53% stake due to difficulties in finding a cash buyer, despite attempts through Bank of America. (The Australian)

• Elanor Investor Group is close to finalizing a refinancing deal with Keyview Financial Group to stabilize its property management operations. (AFR)

• Cettire's 79% short squeeze added $400m to its market cap, driven by auditors signing off on accounts, large short positions, and limited free float. (Capital Brief)

• Banlaw, a Newcastle-based fluid management company, is for sale, expecting $58m in revenue this financial year. (AFR)

• Morrison & Co is looking for a passive investor to buy Commonwealth Superannuation Corporation's $2bn stake in CDC Data Centres, with Barrenjoey facilitating the sale. (The Australian)

• Coronado Global Resources has hired three banks for its $400m debut high-yield bond, after its earlier plan to sell a 51% stake was abandoned. (AFR)

• Bidders for Anglo American’s $5bn steelmaking coal portfolio are finalizing offers due the week of November 11, after reviewing details of the sought-after assets. (The Australian)

Capital Markets

• Ex-Regal PM Craig Collie and Madusha Dilshan Seneviratna are setting up a healthcare fund, backed by a $70m investment, to target top healthcare companies in Australia and Asia. (AFR)

•  InDebted raised $60m to expand into new markets, pursue acquisitions, and develop its products. (Capital Brief)

• Evolt raised $20m for international growth and a potential IPO, driven by the popularity of weight loss drugs like Ozempic and Wegovy. (BNA)

• Fletcher Building shares gained after completing a key portion of its NZ$700m equity raise. (Capital Brief)

• FireFly Metals, a Canadian gold explorer valued at $502m, is raising $60m through a share placement priced at 95¢, supported by offshore investors. (AFR)

• E&P Financial Group seeks ASX delisting, citing negative impacts from legal issues and a preference for private growth. (Capital Brief)

• Scalare Partners plans to become Australia's first publicly listed tech accelerator through a reverse listing, raising up to $8m, with a $26.5mvaluation. (Capital Brief)

• The Queensland government plans to transform Star Entertainment's looming tax bill into a Treasury loan, offering the casino operator much-needed financial relief as new CEO Steve McCann seeks to stabilize the company. (AFR)

VC

• Restoke.ai raised $5.1m, led by Rampersand, to help restaurants manage rising costs with real-time insights, and plans to use the funds for US expansion. (Capital Brief)

People moves

• Glen Richards, founder of Greencross Vets, has become chairman and investor at Arbor Permanent Owners, a private equity firm, aiming to uncover well-run small businesses. (AFR)

• Lendlease plans to appoint a new chairman before its November 15 AGM, with three candidates considered, none from the real estate sector. (The Australian)

• Three senior Smiggle execs - Chantelle Hayes, Emma Fulford and Chelsea Brunsdon - follow sacked CEO John Cheston ahead of possible demerger. (The Australian)

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