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

<ul>
<li>Since the announcement of the US$1.7 billion secondary offering, <a href="https://www.smartkarma.com/entities/archion-corporation" target="_blank" data-smartkarma-citation="entities:47577:1" rel="noopener">Archion (543A JP)</a>’s shares have declined 5.8% to the undisturbed price of JPY313 (3 July).</li>
<li>It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Archion's share decline is lower than the median of recent large placements.</li>
<li>The preliminary pricing range is JPY250 to JPY300 per share. The offering will likely be priced on 22 July. The average large Japanese placement tends to generate positive returns.</li>
</ul>


Since the announcement of the US$1.7 billion secondary offering, Archion (543A JP)’s shares have declined 5.8% to the undisturbed price of JPY313 (3 July).
It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Archion's share decline is lower than the median of recent large placements.
The preliminary pricing range is JPY250 to JPY300 per share. The offering will likely be priced on 22 July. The average large Japanese placement tends to generate positive returns.


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.

<ul>
<li>
<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> and <a href="https://www.smartkarma.com/entities/daimler-truck-holding-ag" target="_blank" data-smartkarma-citation="entities:35551:1" rel="noopener">Daimler Truck Holding (DTG GR)</a> (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in <a href="https://www.smartkarma.com/entities/archion-corporation" target="_blank" data-smartkarma-citation="entities:47577:1" rel="noopener">Archion (543A JP)</a>.</li>
<li>The news of the possible deal had been leaked ahead of the actual launch, although the overall selldown was very well flagged.</li>
<li>We have looked at most aspects of the deal in our earlier notes. In this note, we talk about the recent share price performance and provide our thoughts on valuations.</li>
</ul>



Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in Archion (543A JP).
The news of the possible deal had been leaked ahead of the actual launch, although the overall selldown was very well flagged.
We have looked at most aspects of the deal in our earlier notes. In this note, we talk about the recent share price performance and provide our thoughts on valuations.


Aequitas: Archion Placement - Past Large Deals Performance and Thoughts on Valuations

<ul>
<li>
<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> and <a href="https://www.smartkarma.com/entities/daimler-truck-holding-ag" target="_blank" data-smartkarma-citation="entities:35551:1" rel="noopener">Daimler Truck Holding (DTG GR)</a> (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in <a href="https://www.smartkarma.com/entities/archion-corporation" target="_blank" data-smartkarma-citation="entities:47577:1" rel="noopener">Archion (543A JP)</a>.</li>
<li>The news of the possible deal was already out last week and the deal terms are somewhat along expected lines.</li>
<li>We have looked at most aspects of the deal in our earlier note. In this note, we will talk about the recent updates.</li>
</ul>



Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in Archion (543A JP).
The news of the possible deal was already out last week and the deal terms are somewhat along expected lines.
We have looked at most aspects of the deal in our earlier note. In this note, we will talk about the recent updates.


Aequitas: Archion Placement - As Expected, Some of the past Large Deals Have Been Mixed

<ul>
<li>
<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> and <a href="https://www.smartkarma.com/entities/daimler-truck-holding-ag" target="_blank" data-smartkarma-citation="entities:35551:1" rel="noopener">Daimler Truck Holding (DTG GR)</a> could look to raise JPY200-300bn (US$1.3-1.9bn) via a secondary in <a href="https://www.smartkarma.com/entities/archion-corporation" target="_blank" data-smartkarma-citation="entities:47577:1" rel="noopener">Archion (543A JP)</a>, as per media reports.</li>
<li>Post the news break on Friday, the company clarified that it is exploring various options, including a secondary.</li>
<li>In this note, we will talk about the possible deal dynamics.</li>
</ul>



Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) could look to raise JPY200-300bn (US$1.3-1.9bn) via a secondary in Archion (543A JP), as per media reports.
Post the news break on Friday, the company clarified that it is exploring various options, including a secondary.
In this note, we will talk about the possible deal dynamics.


Aequitas: Archion Possible Placement - Large, ~US$1.6bn, but Well Flagged Secondary

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

As we highlighted in last week’s Int’l Compass, the weight of the evidence suggests commodities are in the early stages of a new secular bull market. Global Materials remains a favorite Sector overweight and we believe outperformance is likely to continue considering the Sector’s long-term bullish RS reversal. Additionally, we are upgrading equal-weighted Energy to overweight due to bullish price and RS inflections -- add exposure with a focus on small- and mid-caps.

As we highlighted in last week’s Int’l Compass, the weight of the evidence suggests commodities are in the early stages of a new secular bull market. Global Materials remains a favorite Sector overweight and we believe outperformance is likely to continue considering the Sector’s long-term bullish RS reversal. Additionally, we are upgrading equal-weighted Energy to overweight due to bullish price and RS inflections -- add exposure with a focus on small- and mid-caps.

Global Commodity-Related Equity Sectors In Secular Bull

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)

Archion (543A JP): The Current Playbook

The preliminary pricing range is JPY250 to JPY300 per share. The offering will likely be priced on 22 July. The average large Japanese placement...

Arun George

Aequitas: Archion Placement - Past Large Deals Performance and Thoughts on Valuations

Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) are looking to raise up to US$1.7bn via selling some of their stake in Archion (543A JP)....

Sumeet Singh

Aequitas: Archion Placement - As Expected, Some of the past Large Deals Have Been Mixed

Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in Archion...

Sumeet Singh

Aequitas: Archion Possible Placement - Large, ~US$1.6bn, but Well Flagged Secondary

Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) could look to raise JPY200-300bn (US$1.3-1.9bn) via a secondary in Archion (543A JP), as...

Sumeet Singh

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Archion (543A JP): The Current Playbook

The preliminary pricing range is JPY250 to JPY300 per share. The offering will likely be priced on 22 July. The average large Japanese placement...

Arun George

Aequitas: Archion Placement - Past Large Deals Performance and Thoughts on Valuations

Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) are looking to raise up to US$1.7bn via selling some of their stake in Archion (543A JP)....

Sumeet Singh

Aequitas: Archion Placement - As Expected, Some of the past Large Deals Have Been Mixed

Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in Archion...

Sumeet Singh

Aequitas: Archion Possible Placement - Large, ~US$1.6bn, but Well Flagged Secondary

Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) could look to raise JPY200-300bn (US$1.3-1.9bn) via a secondary in Archion (543A JP), as...

Sumeet Singh

Global Commodity-Related Equity Sectors In Secular Bull

We believe commodities are in the early stages of a new secular bull market. Global Materials & Energy remain our favorite Sector overweights - add...

Vermilion Research