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>As per media reports <a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota Motor (7203 JP)</a> (TMC) could be planning to unwind some of its US$19bn cross-shareholding by working with financial institutions.</li>
<li>In our prior series of notes, we had looked at the cross-shareholding across a swathe of companies, the largest of which was Toyota Motors.</li>
<li>In this note, we take a quick look at the possible shareholding unwind.</li>
</ul>


As per media reports Toyota Motor (7203 JP) (TMC) could be planning to unwind some of its US$19bn cross-shareholding by working with financial institutions.
In our prior series of notes, we had looked at the cross-shareholding across a swathe of companies, the largest of which was Toyota Motors.
In this note, we take a quick look at the possible shareholding unwind.


Aequitas: Toyota Motors Cross-Shareholding - Possible US$19bn Unwind, Might Not Be Soon

APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC IPOs & Placements

Japan Hotel Reit Investment / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-hotel-reit-investment" target="_blank" data-smartkarma-citation="entities:144:1" rel="noopener">Japan Hotel Reit Investment (8985 JP)</a> aims to raise around US$462m to partly fund the acquisition of Hyatt Regency Tokyo.</li>
<li>The company has undertaken a number of deals in the past, most of which have managed to perform well.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Japan Hotel Reit Investment (8985 JP) aims to raise around US$462m to partly fund the acquisition of Hyatt Regency Tokyo.
The company has undertaken a number of deals in the past, most of which have managed to perform well.
In this note, we will talk about the placement and run the deal through our ECM framework.


Aequitas: Japan Hotel REIT Placement - Relatively Large Deal but Not Really DPU Accretive

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.

Shin Etsu Chemical / Equity Capital Markets

<ul>
<li>Since the announcement of the US$1.0 billion secondary offering, <a href="https://www.smartkarma.com/entities/shin-etsu-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:4481:1" rel="noopener">Shin Etsu Chemical (4063 JP)</a>’s shares have declined 6.3% to the undisturbed price of JPY5,476 per share (27 January).</li>
<li>It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Shin Etsu's share decline is lower than the median of recent large placements.</li>
<li>The offering will likely be priced on 4 February. The average large Japanese placement tends to generate positive returns.</li>
</ul>


Since the announcement of the US$1.0 billion secondary offering, Shin Etsu Chemical (4063 JP)’s shares have declined 6.3% to the undisturbed price of JPY5,476 per share (27 January).
It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Shin Etsu's share decline is lower than the median of recent large placements.
The offering will likely be priced on 4 February. The average large Japanese placement tends to generate positive returns.


Shin Etsu Chemical (4063 JP): The Current Playbook

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kandenko-co-ltd" target="_blank" data-smartkarma-citation="entities:3726:1" rel="noopener">Kandenko Co Ltd (1942 JP)</a> has announced a secondary offering of 22.8 million shares (26.2 million including overallotment), worth around US$0.8 billion (US$1.0 billion including overallotment).</li>
<li>The timing is opportunistic as the shares are up 159% in the last 12 months. Notably, the placement was announced post-close after the full-year results were <a href="https://www.kandenko.co.jp/en/docs/3Notice%20of%20Revision%20to%20Financial%20Results%20and%20Dividend%20Forecasts.pdf" target="_blank" rel="noopener">upgraded intraday</a>.</li>
<li>The offering as a percentage of outstanding shares and ADV is below average compared to recent large placements. A ToSTNeT-3 repurchase (up to JPY30 billion) will partly mitigate the impact.</li>
</ul>



Kandenko Co Ltd (1942 JP) has announced a secondary offering of 22.8 million shares (26.2 million including overallotment), worth around US$0.8 billion (US$1.0 billion including overallotment).
The timing is opportunistic as the shares are up 159% in the last 12 months. Notably, the placement was announced post-close after the full-year results were upgraded intraday.
The offering as a percentage of outstanding shares and ADV is below average compared to recent large placements. A ToSTNeT-3 repurchase (up to JPY30 billion) will partly mitigate the impact.


Kandenko (1942 JP): A US$1.0 Billion Secondary Offering

Kokusai Electric  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/applied-materials-inc" target="_blank" data-smartkarma-citation="entities:283:1" rel="noopener">Applied Materials (AMAT US)</a> (AM) is looking to raise approximately US$510m through an accelerated secondary offering for around 5% of <a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525 JP)</a>’s (KE) stock.</li>
<li>KE had seen three selldown earlier, two from KKR and one from AM, with mixed results.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Applied Materials (AMAT US) (AM) is looking to raise approximately US$510m through an accelerated secondary offering for around 5% of Kokusai Electric (6525 JP)’s (KE) stock.
KE had seen three selldown earlier, two from KKR and one from AM, with mixed results.
In this note, we will talk about the placement and run the deal through our ECM framework.


Aequitas: Kokusai Electric Placement - Last Deal Did Ok, but the Stock Has Done Very Well Since

Japan

Japan Post Insurance Co. Ltd. operates life insurance business. The Company offers whole life insurance, education endowment, ordinary endowment, medical insurance, and special endowment insurance. Japan Post Insurance provides services for individuals and businesses throughout Japan.

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Japan Post Insurance (7181 JP)

Aequitas: Toyota Motors Cross-Shareholding - Possible US$19bn Unwind, Might Not Be Soon

As per media reports Toyota Motor (7203 JP) (TMC) could be planning to unwind some of its US$19bn cross-shareholding by working with financial...

Sumeet Singh

Aequitas: Japan Hotel REIT Placement - Relatively Large Deal but Not Really DPU Accretive

Japan Hotel REIT (JHR) aims to raise around US$462m to partly fund the acquisition of Hyatt Regency Tokyo. In this note, we will talk about the...

Akshat Shah

Shin Etsu Chemical (4063 JP): The Current Playbook

The offering will likely be priced on 4 February. The average large Japanese placement tends to generate positive returns.

Arun George

Kandenko (1942 JP): A US$1.0 Billion Secondary Offering

The timing of the placement after upgrading full-year forecasts will not be well-received. The offering as a percentage of out. shares and ADV are...

Arun George

Aequitas: Kokusai Electric Placement - Last Deal Did Ok, but the Stock Has Done Very Well Since

Applied Materials (AMAT US) (AM) is looking to raise approximately US$510m through an accelerated secondary offering for around 5% of Kokusai...

Sumeet Singh

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