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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR</a> and KSP Kokusai Investments are looking to raise approximately US$1.7bn through an extended secondary follow-on offering, via selling approximately 22.3% 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>. </li>
<li>We have looked at the lockup expiry and deal dynamics in our earlier notes.</li>
<li>In this note, we talk about share price performance since then.</li>
</ul>



KKR and KSP Kokusai Investments are looking to raise approximately US$1.7bn through an extended secondary follow-on offering, via selling approximately 22.3% of Kokusai Electric (6525 JP). 
We have looked at the lockup expiry and deal dynamics in our earlier notes.
In this note, we talk about share price performance since then.


Kokusai Electric Placement Updates - Misbehaving

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

Kokusai Electric  / Equity Capital Markets

<ul>
<li>
<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> has announced a secondary offering of up to 60.4 million shares (including overallotment). At the close, the offer, including overallotment, is worth JPY326 billion (US$2.0 billion).</li>
<li>The secondary offering facilitates KKR and KSP Kokusai Investments' ability to crystallise substantial IPO gains—the shares are trading at 3.2x the IPO price of JPY1,840.</li>
<li>Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 22 and 24 July (likely 22 July).</li>
</ul>



Kokusai Electric (6525 JP) has announced a secondary offering of up to 60.4 million shares (including overallotment). At the close, the offer, including overallotment, is worth JPY326 billion (US$2.0 billion).
The secondary offering facilitates KKR and KSP Kokusai Investments' ability to crystallise substantial IPO gains—the shares are trading at 3.2x the IPO price of JPY1,840.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 22 and 24 July (likely 22 July).


Kokusai Electric (6525 JP): A US$2.0 Billion Secondary Offering

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co (KKR US)</a> and KSP Kokusai Investments are looking to raise approximately US$1.7bn through an extended secondary follow-on offering, selling approximately 52.5m shares 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)'s</a> stock.</li>
<li>The deal is a large one to digest at 19 days of three month ADV.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



KKR &amp; Co (KKR US) and KSP Kokusai Investments are looking to raise approximately US$1.7bn through an extended secondary follow-on offering, selling approximately 52.5m shares of Kokusai Electric (6525 JP)'s stock.
The deal is a large one to digest at 19 days of three month ADV.
In this note, we will talk about the placement and run the deal through our ECM framework.


Kokusai Electric Placement - US$1.7bn Selldown for a Good Quality Name

<ul>
<li>Reuters reported that <a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co (KKR US)</a>, the largest <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> shareholder, plans to sell about half of its 43% stake, worth around JPY300 billion.</li>
<li>As Kokusai’s shares are trading at 3.2x the IPO price of JPY1,840, KKR would be tempted to reduce its stake further. The 180-day IPO lock-up period expired on 22 April.</li>
<li>Kokusai anticipates a return to growth and margin improvement. However, Kokusai trades at a material premium to peer multiples and is fully priced. </li>
</ul>


Reuters reported that KKR &amp; Co (KKR US), the largest Kokusai Electric (6525 JP) shareholder, plans to sell about half of its 43% stake, worth around JPY300 billion.
As Kokusai’s shares are trading at 3.2x the IPO price of JPY1,840, KKR would be tempted to reduce its stake further. The 180-day IPO lock-up period expired on 22 April.
Kokusai anticipates a return to growth and margin improvement. However, Kokusai trades at a material premium to peer multiples and is fully priced. 


Kokusai Electric (6525 JP): Rumoured KKR US$1.8 Billion Secondary Offering

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

<ul>
<li>The company’s targets are underwhelming given the opportunity but low expectations built in</li>
<li>A revamped strategy to increase profitability and shareholder returns is “radical” for this old-school company</li>
<li>Execution is key for certain parts of the plan, but the market can do the rest</li>
</ul>


The company’s targets are underwhelming given the opportunity but low expectations built in
A revamped strategy to increase profitability and shareholder returns is “radical” for this old-school company
Execution is key for certain parts of the plan, but the market can do the rest


Return to Sender: Japan Post Holdings (6178.T) – Entering the Modern Age

United States

KKR & Co. Inc. operates as an investment firm. The Company manages investments such as private equity, energy, infrastructure, real estate, credit strategies, and hedge funds. KKR & Co serves clients worldwide.

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KKR & Co (KKR US)

Kokusai Electric Placement Updates - Misbehaving

KKR and KSP Kokusai Investments are looking to raise approximately US$1.7bn through selling a large stake in Kokusai. In this note, we talk about...

Sumeet Singh

Kokusai Electric (6525 JP): A US$2.0 Billion Secondary Offering

Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 22 and...

Arun George

Kokusai Electric Placement - US$1.7bn Selldown for a Good Quality Name

KKR & Co (KKR US) and KSP Kokusai Investments are looking to raise approximately US$1.7bn selling approximately 52.5m shares of Kokusai Electric...

Ethan Aw

Kokusai Electric (6525 JP): Rumoured KKR US$1.8 Billion Secondary Offering

As Kokusai’s shares are trading at 3.2x the IPO price, KKR would be tempted to reduce its stake further. Expect a secondary offering announcement...

Arun George

Return to Sender: Japan Post Holdings (6178.T) – Entering the Modern Age

Company's underwhelming targets should be beaten. Its plans are being revamped with a "radical" strategy to increase profitability and shareholder...

Rikki Malik

Price Gauge

52-week Range

Market Cap (USDm)

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Kokusai Electric Placement Updates - Misbehaving

KKR and KSP Kokusai Investments are looking to raise approximately US$1.7bn through selling a large stake in Kokusai. In this note, we talk about...

Sumeet Singh

Kokusai Electric (6525 JP): A US$2.0 Billion Secondary Offering

Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 22 and...

Arun George

Kokusai Electric Placement - US$1.7bn Selldown for a Good Quality Name

KKR & Co (KKR US) and KSP Kokusai Investments are looking to raise approximately US$1.7bn selling approximately 52.5m shares of Kokusai Electric...

Ethan Aw

Kokusai Electric (6525 JP): Rumoured KKR US$1.8 Billion Secondary Offering

As Kokusai’s shares are trading at 3.2x the IPO price, KKR would be tempted to reduce its stake further. Expect a secondary offering announcement...

Arun George

Return to Sender: Japan Post Holdings (6178.T) – Entering the Modern Age

​Company's underwhelming targets should be beaten. Its plans are being revamped with a "radical" strategy to increase profitability and shareholder...

Rikki Malik

Company's underwhelming targets should be beaten. Its plans are being revamped with a "radical" strategy to increase profitability and shareholder...