IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

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.

Equity Capital Markets

SBI Shinsei Bank / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a>, a Japanese financial institution, has set an IPO price range of JPY1,440 to JPY1,450 per share compared to the reference price of JPY1,440.</li>
<li>I discussed the relisting in <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:211376" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:211514" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: Valuation Insights</a>. </li>
<li>The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.</li>
</ul>



SBI Shinsei Bank (8303 JP), a Japanese financial institution, has set an IPO price range of JPY1,440 to JPY1,450 per share compared to the reference price of JPY1,440.
I discussed the relisting in SBI Shinsei Bank (8303 JP) IPO: The Investment Case and SBI Shinsei Bank (8303 JP) IPO: Valuation Insights. 
The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.


SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a>, a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%.</li>
<li>I discussed the investment thesis in <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:211376" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: The Investment Case</a>. </li>
<li>In this note, I discuss valuation. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share. </li>
</ul>



SBI Shinsei Bank (8303 JP), a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%.
I discussed the investment thesis in SBI Shinsei Bank (8303 JP) IPO: The Investment Case. 
In this note, I discuss valuation. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share. 


SBI Shinsei Bank (8303 JP) IPO: Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a>, a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%. </li>
<li>In December 2021, Shinsei Bank was privatised by <a href="https://www.smartkarma.com/entities/sbi-holdings-inc" target="_blank" data-smartkarma-citation="entities:10928:1" rel="noopener">SBI Holdings (8473 JP)</a> through a contentious tender offer at JPY2,800 per share. </li>
<li>The investment case rests on growth in accounts/deposits, robust loan book growth, accelerating revenue growth, rising margins and improving asset quality.</li>
</ul>



SBI Shinsei Bank (8303 JP), a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%. 
In December 2021, Shinsei Bank was privatised by SBI Holdings (8473 JP) through a contentious tender offer at JPY2,800 per share. 
The investment case rests on growth in accounts/deposits, robust loan book growth, accelerating revenue growth, rising margins and improving asset quality.


SBI Shinsei Bank (8303 JP) IPO: The Investment Case

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>We update our views on ten Japanese midcap banks focusing on those with large strategic shareholdings relative to market value, as well as beneficiaries of the improving interest rate outlook</li>
<li>Our top-rated pick is <a href="https://www.smartkarma.com/entities/iyogin-holdings-inc" target="_blank" data-smartkarma-citation="entities:40839:1" rel="noopener">Iyogin Holdings (5830 JP)</a>, with its constructive mix of large strategic holdings, attractive valuations including PTBV ratio and healthy gearing to higher interest rates</li>
<li>We also retain Hokuhoku Financial and Hachijuni Bank as buys; Hokuhoku has yet to realize its large strategic holdings whilst Hachijuni has reached its target level for cross-holdings reduction</li>
</ul>


We update our views on ten Japanese midcap banks focusing on those with large strategic shareholdings relative to market value, as well as beneficiaries of the improving interest rate outlook
Our top-rated pick is Iyogin Holdings (5830 JP), with its constructive mix of large strategic holdings, attractive valuations including PTBV ratio and healthy gearing to higher interest rates
We also retain Hokuhoku Financial and Hachijuni Bank as buys; Hokuhoku has yet to realize its large strategic holdings whilst Hachijuni has reached its target level for cross-holdings reduction


Japanese Midcap Banks – Iyogin Holdings (5830 JP) Is Our Top Pick

<ul>
<li>Reuters reports that <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" rel="noopener">Japan Post Holdings (6178 JP)</a> (JPH) is planning to sell shares in <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a> (JPB), which could total some JPY600 billion (US$4.0 billion).</li>
<li>The potential offering would align with JPH’s stated goal of reducing its equity interest in JPB to 50% or less by FY 2025.</li>
<li>The potential offering is relatively smaller than JPB’s 2023 offering. Compared to its peers, JPB’s valuation remains undemanding. </li>
</ul>


Reuters reports that Japan Post Holdings (6178 JP) (JPH) is planning to sell shares in Japan Post Bank (7182 JP) (JPB), which could total some JPY600 billion (US$4.0 billion).
The potential offering would align with JPH’s stated goal of reducing its equity interest in JPB to 50% or less by FY 2025.
The potential offering is relatively smaller than JPB’s 2023 offering. Compared to its peers, JPB’s valuation remains undemanding. 


Japan Post Bank (7182 JP): Japan Post Holding (6178 JP)’s Rumoured Offering

Japan

Aozora Bank, Ltd. provides banking services including deposits, savings, loans, foreign exchange transactions, and securities investments. Aozora Bank also provides services such as trust account, resolution and collection, and venture capital.

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Aozora Bank Ltd (8304 JP)

SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive

The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.

Arun George

SBI Shinsei Bank (8303 JP) IPO: Valuation Insights

SBI Shinsei is seeking to raise about US$2 billion. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share.

Arun George

SBI Shinsei Bank (8303 JP) IPO: The Investment Case

SBI Shinsei Bank, a Japanese financial institution, is looking to relist by raising about US$2 billion. In this note, I discuss the investment case.

Arun George

Japanese Midcap Banks – Iyogin Holdings (5830 JP) Is Our Top Pick

We focus on large cross-holdings and positive interest rate gearing in this report on Japanese midcap banks; Iyogin Holdings is our top pick,...

Victor Galliano

Japan Post Bank (7182 JP): Japan Post Holding (6178 JP)’s Rumoured Offering

The potential offering would align with JPH’s stated goal of reducing its equity interest in JPB to 50% or less by FY 2025. Compared to its peers,...

Arun George

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