Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

CKD Corporation manufactures pneumatic equipment and control devices including valves, cylinders, filters, and dryers.  The Company also produces automated labor-saving machines such as integrated circuit (IC) production equipment, assembly machines, auto-transport machinery, and packaging machines for pharmaceutical products.

<ul>
<li>Yesterday, <a href="https://www.smartkarma.com/entities/ckd-corp" target="_blank" data-smartkarma-citation="entities:15225:1" rel="noopener">Ckd Corp (6407 JP)</a> announced a secondary offering where multiple banks and an insurer will sell shares. Other banks and corporates and various mutual ownership associations will still hold.</li>
<li>The offering is "small" at 6x ADV and 6% but the stock is well held by actives already. Only 13% of Max Real World Float on offer here but... overhang.</li>
<li>The company is in the right AI/semicon/machinery space (stock up big last 18mos) but it isn't <em>dirt</em> cheap and expected growth is slower than you'd like for the multiple.</li>
</ul>


Yesterday, Ckd Corp (6407 JP) announced a secondary offering where multiple banks and an insurer will sell shares. Other banks and corporates and various mutual ownership associations will still hold.
The offering is "small" at 6x ADV and 6% but the stock is well held by actives already. Only 13% of Max Real World Float on offer here but... overhang.
The company is in the right AI/semicon/machinery space (stock up big last 18mos) but it isn't dirt cheap and expected growth is slower than you'd like for the multiple.


[Japan Offering] CKD (6407 JP) Sees Banks and an Insurer Sell; Buyback but Index Selling Offsets

APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC IPOs & Placements

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.

<ul>
<li>A group of shareholders are looking to raise ~US$130m in a secondary sale of <a href="https://www.smartkarma.com/entities/ckd-corp" target="_blank" data-smartkarma-citation="entities:15225:1" rel="noopener">Ckd Corp (6407 JP)</a>
</li>
<li>Selling shareholders include the banks - Mitsui Trust bank, Mitsui Banking, MUFG etc. Post the deal, they will retain &lt;5% ownership.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>


A group of shareholders are looking to raise ~US$130m in a secondary sale of Ckd Corp (6407 JP)

Selling shareholders include the banks - Mitsui Trust bank, Mitsui Banking, MUFG etc. Post the deal, they will retain &lt;5% ownership.
In this note, we will talk about the placement and run the deal through our ECM framework.


Aequitas: CKD Corp Placement - US$130m Secondary Selldown in an AI/Semicon Name

Sodick Co., Ltd. develops, manufactures, and sells electric machines and equipment.  The Company's product line includes computerized numerical control electrical discharge machine (EDM), super high precision wire cut EDM, CAD/CAM system for mold design and production, injection molding machine, and high speed manual drilling machine.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sodick-co-ltd" target="_blank" data-smartkarma-citation="entities:3814:1" rel="noopener">Sodick Co Ltd (6143 JP)</a> announced a secondary equity offering yesterday. The stock is down 6% today because of that but that barely covers the dilution. </li>
<li>Yes, it is secondary, but nearly 40% of the offering is from secondary shares created from warrant conversion. AP bought dirt cheap warrants and a dirt cheap CB last year.</li>
<li>The Company benefits from AI Data Centre buildout, and isn't expensive. There's a buyback to mitigate supply, but that goes to show the AP deal was structurally a bad idea.</li>
</ul>



Sodick Co Ltd (6143 JP) announced a secondary equity offering yesterday. The stock is down 6% today because of that but that barely covers the dilution. 
Yes, it is secondary, but nearly 40% of the offering is from secondary shares created from warrant conversion. AP bought dirt cheap warrants and a dirt cheap CB last year.
The Company benefits from AI Data Centre buildout, and isn't expensive. There's a buyback to mitigate supply, but that goes to show the AP deal was structurally a bad idea.


[Japan Offering] Sodick (6143 JP) Offering by Crossholders and AP (Ouch); Cheap But A Mgmt Red Flag

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

INFRONEER Holdings  / Equity Capital Markets

INFRONEER Holdings Inc. offers infrastructure construction services. The Company provides energy construction, road construction, airport construction, exhibition hall construction, and more. INFRONEER Holdings also produces construction equipment.

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, last week's Hong kong listings were a mixed bag.</li>
<li>On the placement front, given the holiday shorterened week there were only a few placements across the region.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, last week's Hong kong listings were a mixed bag.
On the placement front, given the holiday shorterened week there were only a few placements across the region.


Aequitas ECM Weekly (5 October 2026)- Moore Threads, ASR, Adtek, ESWIN, Transsion, Infroneer, Woori

Hennge K.K. engages in software as a services business. The Company provides identity as a service, access control, secure browse, mail archive, secure transfer, customers mail cloud, mail application server, and other services. Hennge serves customers throughout Asia.

<ul>
<li>On Friday 2 October, just three business days before the TSE announces the restructuring of the TOPIX Index which would <em>not</em> include it, <a href="https://www.smartkarma.com/entities/hennge-kk" target="_blank" data-smartkarma-citation="entities:29241:1" rel="noopener">Hennge KK (4475 JP)</a> squeezes in.</li>
<li>To effect that inclusion, the company has announced a secondary equity offering where three of the top four execs (all with the company nearly 30yrs) are selling 1.75mm shares and... </li>
<li>...there is a new share offering of 1.1mm shares. Total should be about US$30mm. 5x ADV. ~9% of shares out. Supply/demand dynamics are interesting. The stock is not cheap.</li>
</ul>


On Friday 2 October, just three business days before the TSE announces the restructuring of the TOPIX Index which would not include it, Hennge KK (4475 JP) squeezes in.
To effect that inclusion, the company has announced a secondary equity offering where three of the top four execs (all with the company nearly 30yrs) are selling 1.75mm shares and... 
...there is a new share offering of 1.1mm shares. Total should be about US$30mm. 5x ADV. ~9% of shares out. Supply/demand dynamics are interesting. The stock is not cheap.


[Japan Offering] IDaaS Provider Hennge (4475 JP) Announces Offering For Last Minute TOPIX Entry