Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/rakuten-group-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten (4755 JP)</a> and <a href="https://www.smartkarma.com/entities/rakuten-bank-ltd" target="_blank" data-smartkarma-citation="entities:35638:1" rel="noopener">Rakuten Bank (5838 JP)</a> <a href="https://www.rakuten-bank.co.jp/press/2023/pdf/230322-2.pdf" target="_blank" rel="noopener">announced</a> that Rakuten Bank had <a href="https://global.rakuten.com/corp/news/press/2023/0322_01.html" target="_blank" rel="noopener">received TSE approval to list</a> (English) on TSE Prime, with expected listing date 21 April 2023.</li>
<li>This had been <a href="https://global.rakuten.com/corp/news/press/2022/0704_02.html?year=2022&amp;month=7&amp;category=corp%20ir%20fintech" target="_blank" rel="noopener">in the works since July 2022</a>, and they <a href="https://www.bloomberg.com/news/articles/2022-09-21/rakuten-is-said-to-pick-goldman-daiwa-for-banking-unit-ipo#xj4y7vzkg" target="_blank" rel="noopener">selected advisors</a> in September 2022. The low end of the offer price range seems attractive. More diligence needed.</li>
<li>There will be index inclusions. Unlike <a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a> which is going to TSE Standard, Rakuten Bank is going to Prime.</li>
</ul>


Today, Rakuten (4755 JP) and Rakuten Bank (5838 JP) announced that Rakuten Bank had received TSE approval to list (English) on TSE Prime, with expected listing date 21 April 2023.
This had been in the works since July 2022, and they selected advisors in September 2022. The low end of the offer price range seems attractive. More diligence needed.
There will be index inclusions. Unlike SBI Sumishin Net Bank (7163 JP) which is going to TSE Standard, Rakuten Bank is going to Prime.


Rakuten Bank (5838 JP) - Another Net-Bank IPO, This One With TOPIX and Other Index Inclusions

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 Sumishin Net Bank  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a> has introduced a price range of JPY1,200-1,260 per share in the wake of a sell-off in bank shares. Offer shares and timelines are unchanged.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/sbi-sumishin-net-bank-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:96979" rel="noopener">SBI Sumishin Net Bank IPO: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/sbi-sumishin-net-bank-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:97161" rel="noopener">SBI Sumishin Net Bank IPO: Valuation Insights</a>. The shares will be listed on 29 March.</li>
<li>Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the new IPO price range. We would participate in the IPO.</li>
</ul>



SBI Sumishin Net Bank (7163 JP) has introduced a price range of JPY1,200-1,260 per share in the wake of a sell-off in bank shares. Offer shares and timelines are unchanged.
We previously discussed the IPO in SBI Sumishin Net Bank IPO: The Investment Case and SBI Sumishin Net Bank IPO: Valuation Insights. The shares will be listed on 29 March.
Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the new IPO price range. We would participate in the IPO.


SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off

<ul>
<li>
<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> priced its offer at JPY1,131, a discount of 2.1% to the last close. JPB’s on-market buyback period runs from 22 March to 12 May.</li>
<li>
<a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a>/ JPH’s 2021 offering suggests that the share price will have support to trade above the offer price at delivery date and the on-market buyback period.</li>
<li>The offer price’s forward P/B of 0.45x and yield of 4.42% are attractive vs peers. JPB’s price ratio at the offer price is undemanding vs TOPIX Banks ETF and JPH.</li>
</ul>



Japan Post Bank (7182 JP) priced its offer at JPY1,131, a discount of 2.1% to the last close. JPB’s on-market buyback period runs from 22 March to 12 May.

Japan Post Holdings (6178 JP)/ JPH’s 2021 offering suggests that the share price will have support to trade above the offer price at delivery date and the on-market buyback period.
The offer price’s forward P/B of 0.45x and yield of 4.42% are attractive vs peers. JPB’s price ratio at the offer price is undemanding vs TOPIX Banks ETF and JPH.


Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook

<ul>
<li>Since the offer announcement, <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’s shares have risen by 4.4%. On 1 March, JPB completed the ToSTNeT-3 buyback by acquiring 59.5 million shares for JPY70 billion.</li>
<li>To understand JPB's trading pattern, it is instructive to look at <a href="https://www.smartkarma.com/entities/japan-post-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:840:1" rel="noopener">Japan Post Insurance (7181 JP)</a>/JPI’s 2019 offering and <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a>/ JPH’s 2021 offering.</li>
<li>JPB’s shares should follow the trading pattern playbook of JPI’s 2019 and JPH’s 2021 offerings and start trading below the pre-offer last trading price during the subscription period.</li>
</ul>


Since the offer announcement, Japan Post Bank (7182 JP)/JPB’s shares have risen by 4.4%. On 1 March, JPB completed the ToSTNeT-3 buyback by acquiring 59.5 million shares for JPY70 billion.
To understand JPB's trading pattern, it is instructive to look at Japan Post Insurance (7181 JP)/JPI’s 2019 offering and Japan Post Holdings (6178 JP)/ JPH’s 2021 offering.
JPB’s shares should follow the trading pattern playbook of JPI’s 2019 and JPH’s 2021 offerings and start trading below the pre-offer last trading price during the subscription period.


Japan Post Bank (7182 JP): The Current Playbook

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a>, an online bank in Japan, has revived its listing plans to raise up to US$440 million (vs the 2022 target of US$1 billion).</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/sbi-sumishin-net-bank-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:96979" rel="noopener">SBI Sumishin Net Bank IPO: The Investment Case</a>. The shares will be listed on 29 March.</li>
<li>In this note, we discuss valuation. Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the IPO reference price of JPY1,260. We would participate in the IPO.</li>
</ul>



SBI Sumishin Net Bank (7163 JP), an online bank in Japan, has revived its listing plans to raise up to US$440 million (vs the 2022 target of US$1 billion).
We previously discussed the IPO in SBI Sumishin Net Bank IPO: The Investment Case. The shares will be listed on 29 March.
In this note, we discuss valuation. Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the IPO reference price of JPY1,260. We would participate in the IPO.


SBI Sumishin Net Bank IPO: Valuation Insights

Japan

The Chiba Bank, Ltd. is a regional bank based in Chiba Prefecture. The Bank offers general banking services including deposits, loans, and foreign exchange transactions. The Chiba Bank also develops software and provides financial services such as leasing, securities brokerage, letter of credit, and credit cards.

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Chiba Bank (8331 JP)

Rakuten Bank (5838 JP) - Another Net-Bank IPO, This One With TOPIX and Other Index Inclusions

Rakuten Bank IPO has been in the works since July 2022. It's here. Timing could have been better. Rakuten Bank specialises in B2C transactions,...

Travis Lundy

Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook

The offer price is attractive in comparison to peer multiples and price ratios. In line with JPH’s 2021 offering, the on-market buyback should help...

Arun George

Japan Post Bank (7182 JP): The Current Playbook

JPB’s shares should follow the trading pattern playbook of JPI’s 2019 and JPH’s 2021 offerings and start trading below the pre-offer last trading...

Arun George

SBI Sumishin Net Bank IPO: Valuation Insights

In this note, we discuss valuation. Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the IPO reference price of JPY1,260. We...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Rakuten Bank (5838 JP) - Another Net-Bank IPO, This One With TOPIX and Other Index Inclusions

Rakuten Bank IPO has been in the works since July 2022. It's here. Timing could have been better. Rakuten Bank specialises in B2C transactions,...

Travis Lundy

SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off

Despite the bank sell-off, SBI Sumishin Net Bank is fairly valued at the new IPO price range of JPY1,200-1,260 per share. We would participate in...

Arun George

Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook

The offer price is attractive in comparison to peer multiples and price ratios. In line with JPH’s 2021 offering, the on-market buyback should help...

Arun George

Japan Post Bank (7182 JP): The Current Playbook

JPB’s shares should follow the trading pattern playbook of JPI’s 2019 and JPH’s 2021 offerings and start trading below the pre-offer last trading...

Arun George

SBI Sumishin Net Bank IPO: Valuation Insights

In this note, we discuss valuation. Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the IPO reference price of JPY1,260. We...

Arun George