Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Equity Capital Markets

<ul>
<li>A group of shareholders aims to raise around US$330m via selling around 3.6% of <a href="https://www.smartkarma.com/entities/yamaha-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:7411:1" rel="noopener">Yamaha Motor (7272 JP).</a>
</li>
<li>This will be another cross-shareholding unwind and hence, won’t be a huge surprise, although the stock hasn’t been doing particularly well lately.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


A group of shareholders aims to raise around US$330m via selling around 3.6% of Yamaha Motor (7272 JP).

This will be another cross-shareholding unwind and hence, won’t be a huge surprise, although the stock hasn’t been doing particularly well lately.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Yamaha Motors Placement - A Relatively Small Cross-Shareholding Unwind

<ul>
<li>
<a href="https://www.smartkarma.com/entities/colowide-co-ltd" target="_blank" data-smartkarma-citation="entities:13967:1" rel="noopener">Colowide Co Ltd (7616 JP)</a> aims to raise around US$230m in order to fund its prospective M&amp;A transactions over the next few years</li>
<li>While the company has undertaken a number of M&amp;A transactions in the past, it hasn’t clearly stated its intended targets for this round.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Colowide Co Ltd (7616 JP) aims to raise around US$230m in order to fund its prospective M&amp;A transactions over the next few years
While the company has undertaken a number of M&amp;A transactions in the past, it hasn’t clearly stated its intended targets for this round.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Colowide Placement - Needs a Very Large Correction

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On 8 September, I went over the <a href="https://www.smartkarma.com/entities/oisix-ra-daichi-inc" target="_blank" data-smartkarma-citation="entities:10145:1" rel="noopener">Oisix ra daichi (3182 JP)</a> bid for the stake in <a href="https://www.smartkarma.com/entities/shidax-corp" target="_blank" data-smartkarma-citation="entities:7754:1" rel="noopener">Shidax Corp (4837 JP)</a> held by Unison Capital. </li>
<li>The founding Shida family had a deal whereby when the company raised capital years ago, the family had ROFR to buy or nominate a buyer of the Unison stake.</li>
<li>The problem? Shidax' independent board said this was unfair to minorities. The back and forth has continued but there may now be hope for a better deal. </li>
</ul>


On 8 September, I went over the Oisix ra daichi (3182 JP) bid for the stake in Shidax Corp (4837 JP) held by Unison Capital. 
The founding Shida family had a deal whereby when the company raised capital years ago, the family had ROFR to buy or nominate a buyer of the Unison stake.
The problem? Shidax' independent board said this was unfair to minorities. The back and forth has continued but there may now be hope for a better deal. 


Shidax Outlook May Change - Better Governance Matters

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shidax-corp" target="_blank" data-smartkarma-citation="entities:7754:1" rel="noopener">Shidax Corp (4837 JP)</a> is a food service business in the midst of a so-far reasonably successful restructuring. The family had a partner in Unison and hoped to extend. </li>
<li>The founding family and Unison now have ~60% together, and they vote together. Unison wants out. The family wants <a href="https://www.smartkarma.com/entities/oisix-ra-daichi-inc" target="_blank" data-smartkarma-citation="entities:10145:1" rel="noopener">Oisix ra daichi (3182 JP)</a> in. So Oisix has tendered.</li>
<li>But SHiDAX sees the conflict and minorities getting hosed. So they object. The "easy" solution is a full MBO with Oisix support. </li>
</ul>



Shidax Corp (4837 JP) is a food service business in the midst of a so-far reasonably successful restructuring. The family had a partner in Unison and hoped to extend. 
The founding family and Unison now have ~60% together, and they vote together. Unison wants out. The family wants Oisix ra daichi (3182 JP) in. So Oisix has tendered.
But SHiDAX sees the conflict and minorities getting hosed. So they object. The "easy" solution is a full MBO with Oisix support. 


Oisix-Shida Stoush with SHiDAX Suggests Strong but Subtle Strategy

When <a href="https://www.smartkarma.com/entities/colowide-co-ltd" target="_blank" data-smartkarma-citation="entities:13967:1" rel="noopener">Colowide Co Ltd (7616 JP)</a> launched its Tender Offer for <a href="https://www.smartkarma.com/entities/ootoya-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7329:1" rel="noopener">OOTOYA Holdings (2705 JP)</a> back in July, the attempt was to get to board control. Colowide only got to 46+% but at an EGM held earlier this month, they spilled the board and put their own in. My premise for selling at the time was that the stock was - even without thinking of covid effects - expensive at the terms proposed, so that if the Tender went through, the shares would fall afterwards, and there was a non-negligible chance the tender did not go through because the Ootoya kabunushi yutai (shareholder benefit) program was reasonably generous. At the time, I argued that the right trade for those who wanted the yutai program to continue was perhaps to sell their shares into the tender and buy Colowide instead, because their kabunushi yutai program was much more generous. From that point, Ootoya fell 35+% and even at a three-month low, Colowide has gained 14% (though from when I wrote that through end-Sep, Colowide was up 50% at times). New news out yesterday improves the chances Ootoya will see its shares bid up again.

When Colowide Co Ltd (7616 JP) launched its Tender Offer for OOTOYA Holdings (2705 JP) back in July, the attempt was to get to board control. Colowide only got to 46+% but at an EGM held earlier this month, they spilled the board and put their own in. My premise for selling at the time was that the stock was - even without thinking of covid effects - expensive at the terms proposed, so that if the Tender went through, the shares would fall afterwards, and there was a non-negligible chance the tender did not go through because the Ootoya kabunushi yutai (shareholder benefit) program was reasonably generous. At the time, I argued that the right trade for those who wanted the yutai program to continue was perhaps to sell their shares into the tender and buy Colowide instead, because their kabunushi yutai program was much more generous. From that point, Ootoya fell 35+% and even at a three-month low, Colowide has gained 14% (though from when I wrote that through end-Sep, Colowide was up 50% at times). New news out yesterday improves the chances Ootoya will see its shares bid up again. 

Ootoya - Watch Out For Upside on New Yutai Policy

Japan

COLOWIDE CO., LTD. manages, as a holding company, its group companies that operate Japanese style pub restaurant chain named Kantaro and Italian restaurant chain named Itameshiya La Pausa primarily in Tokyo.  The Company also operates KARAOKE business.

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Colowide Co Ltd (7616 JP)

Yamaha Motors Placement - A Relatively Small Cross-Shareholding Unwind

A group of shareholders aims to raise around US$330m via selling around 3.6% of Yamaha Motor (7272 JP). In this note, we talk about the deal dynamics.

Sumeet Singh

Colowide Placement - Needs a Very Large Correction

Colowide Co Ltd (7616 JP) aims to raise around US$230m in order to fund its prospective M&A transactions over the next few years

Sumeet Singh

Shidax Outlook May Change - Better Governance Matters

Shidax may get a deal with Oisix to defend the fair value of future deals in the food service business, with Oisix or with others. That's good...

Travis Lundy

Oisix-Shida Stoush with SHiDAX Suggests Strong but Subtle Strategy

SHiDax' founders wants Oisix to buy Unison's stake. SHiDAX thinks there is a conflict with minorities. There is. Unison has asked SHiDAX board...

Travis Lundy

Ootoya - Watch Out For Upside on New Yutai Policy

Ootoya fell sharply after the Tender Offer by Colowide. A new kabunushi yutai policy raises the effective dividend yield substantially. This should...

Travis Lundy

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