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

Nomura Research Institute / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nomura-holdings-inc" target="_blank" data-smartkarma-citation="entities:742:1" rel="noopener">Nomura Holdings (8604 JP)</a> and <a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> are looking to raise around US$850m via selling 5.7% of <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a>. </li>
<li>This is not the first sale by Nomura and marks a clean up for Jafco. Hence it might not come as a complete surprise.</li>
<li>In this note, we will run the deal through our ECM framework and talk about the recent updates.</li>
</ul>



Nomura Holdings (8604 JP) and Jafco Co Ltd (8595 JP) are looking to raise around US$850m via selling 5.7% of Nomura Research Institute Ltd (4307 JP). 
This is not the first sale by Nomura and marks a clean up for Jafco. Hence it might not come as a complete surprise.
In this note, we will run the deal through our ECM framework and talk about the recent updates.


Nomura Research Placement - Somewhat Well Flagged, past Deals Have Done Well but Momentum Is Weak

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On Friday, <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a> announced that <a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> and <a href="https://www.smartkarma.com/entities/nomura-holdings-inc" target="_blank" data-smartkarma-citation="entities:742:1" rel="noopener">Nomura Holdings (8604 JP)</a> would each sell NRI shares in a Secondary Offering.</li>
<li>JAFCO is selling to fund a giant buyback. Nomura is selling to round out the offering size. The total is 37mm shares plus greenshoe of 5.5mm shares. </li>
<li>At Friday's price that is ~¥140bn (including greenshoe), 7% of shares out, 10% of float, and about 25% of Real World Float. There are index implications.</li>
</ul>


On Friday, Nomura Research Institute Ltd (4307 JP) announced that Jafco Co Ltd (8595 JP) and Nomura Holdings (8604 JP) would each sell NRI shares in a Secondary Offering.
JAFCO is selling to fund a giant buyback. Nomura is selling to round out the offering size. The total is 37mm shares plus greenshoe of 5.5mm shares. 
At Friday's price that is ~¥140bn (including greenshoe), 7% of shares out, 10% of float, and about 25% of Real World Float. There are index implications.


Nomura Research Institute (4307) Large Secondary Offering - Demand Profile and Index Implications

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> has long been known as a "cheap" listed "venture fund" because of its additional large (for it) holding in <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a>.</li>
<li>Well-Known Japanese activist Yoshiaki MURAKAMI and his related companies bought a stake. JAFCO responded with a "Policy" (poison pill). Murakami-san ducked and dodged then bought more. Now the exit. </li>
<li>JAFCO will sell its Nomura Research shares in a Secondary Offering, and conduct a large buyback via tender offer. Like other Murakami exits, this one is not designed for you. </li>
</ul>



Jafco Co Ltd (8595 JP) has long been known as a "cheap" listed "venture fund" because of its additional large (for it) holding in Nomura Research Institute Ltd (4307 JP).
Well-Known Japanese activist Yoshiaki MURAKAMI and his related companies bought a stake. JAFCO responded with a "Policy" (poison pill). Murakami-san ducked and dodged then bought more. Now the exit. 
JAFCO will sell its Nomura Research shares in a Secondary Offering, and conduct a large buyback via tender offer. Like other Murakami exits, this one is not designed for you. 


JAFCO (8595) Yields to Murakami Greenmail - Big Asset Sale, Big Buyback

<ul>
<li>Entities related to noted Japanese activist Yoshiaki Murakami had bought 11+%, suggested 15%, proposed 51%, and pestered <a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> for an asset sale and super-large buyback. </li>
<li>JAFCO decided to launch a poison pill process as a hostile takeover defence mechanism, with the Record Date at August month-end.</li>
<li>The shares popped. I was bearish. It turns out Murakami affiliates sold the pop. And this starts the range trade.</li>
</ul>


Entities related to noted Japanese activist Yoshiaki Murakami had bought 11+%, suggested 15%, proposed 51%, and pestered Jafco Co Ltd (8595 JP) for an asset sale and super-large buyback. 
JAFCO decided to launch a poison pill process as a hostile takeover defence mechanism, with the Record Date at August month-end.
The shares popped. I was bearish. It turns out Murakami affiliates sold the pop. And this starts the range trade.


JAFCO (8595) Down as Murakami Affiliates Sell the Pop on the Poison Pill, So Buy the Range Dip

<ul>
<li>Entities related to noted Japanese activist Murakami Yoshiaki have bought 11.5-15% of <a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> in recent weeks; JAFCO has gotten upset and announced defensive measures.</li>
<li>Murakami wants JAFCO to sell its large stake in <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a> and buy back shares. JAFCO is saving that stake for a rainy day.</li>
<li>The shares have popped. There is a poison pill EGM Record Date coming. It's worth thinking through the implications.</li>
</ul>


Entities related to noted Japanese activist Murakami Yoshiaki have bought 11.5-15% of Jafco Co Ltd (8595 JP) in recent weeks; JAFCO has gotten upset and announced defensive measures.
Murakami wants JAFCO to sell its large stake in Nomura Research Institute Ltd (4307 JP) and buy back shares. JAFCO is saving that stake for a rainy day.
The shares have popped. There is a poison pill EGM Record Date coming. It's worth thinking through the implications.


JAFCO (8595) Vs Murakami - It's On, So We Wait

Japan

JAFCO Co., Ltd. forms venture capital groups to invest primarily in domestic and foreign private companies with high potential for future growth.  The Company also provides management services to the groups, makes loans and offers consultation services to the invested companies.

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Jafco Co Ltd (8595 JP)

Nomura Research Placement - Somewhat Well Flagged, past Deals Have Done Well but Momentum Is Weak

Nomura Holdings (8604 JP) and Jafco Co Ltd (8595 JP) are looking to raise around US$850m via selling 5.7% of Nomura Research Institute Ltd (4307 JP).

Sumeet Singh

Nomura Research Institute (4307) Large Secondary Offering - Demand Profile and Index Implications

Nomura Research Institute (4307) will see a US$1bn Secondary Offering in the next two weeks. JAFCO is selling out, Nomura is topping up the...

Travis Lundy

JAFCO (8595) Yields to Murakami Greenmail - Big Asset Sale, Big Buyback

JAFCO and Murakami-san have come to an agreement on Murakami-san's greenmail. JAFCO will sell its NRI shares, buy back his shares in a Tender, and...

Travis Lundy

JAFCO (8595) Down as Murakami Affiliates Sell the Pop on the Poison Pill, So Buy the Range Dip

Murakami-san bought 11.9% and JAFCO said he was perhaps interested in buying up to 50% so they announced a poison pill and Murakami sold the pop....

Travis Lundy

JAFCO (8595) Vs Murakami - It's On, So We Wait

Murakami-san bought 11.5-15.0% (or now more?) of listed venture fund JAFCO. NAV is ¥2661-3055/share at end-June, now ¥100-150 higher realtime....

Travis Lundy

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