Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Kokusai Electric  / Equity Capital Markets

<ul>
<li>In early October, <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> sold down a US$330mm stake in <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>. Today post-close they return for another 12mm shares.  </li>
<li>The last two offerings went well. This one feels a bit more like the first, not the second and third, but it's a different world now. </li>
<li>There are some index upweights in the next couple of months. There are likely some big ones 8-9mos down the line.</li>
</ul>


In early October, Applied Materials (AMAT US) sold down a US$330mm stake in Kokusai Electric (6525 JP). Today post-close they return for another 12mm shares.  
The last two offerings went well. This one feels a bit more like the first, not the second and third, but it's a different world now. 
There are some index upweights in the next couple of months. There are likely some big ones 8-9mos down the line.


[Japan ECM] Kokusai Elec (6525) - ANOTHER Applied Materials Selldown

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/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

<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> is looking to raise approximately US$330m through an accelerated secondary offering for around 4.5% 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> (KE) stock.</li>
<li>KE had seen two selldown earlier, from KKR, with mixed results. KKR just came out of its last lockup.</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) is looking to raise approximately US$330m through an accelerated secondary offering for around 4.5% of Kokusai Electric (6525 JP) (KE) stock.
KE had seen two selldown earlier, from KKR, with mixed results. KKR just came out of its last lockup.
In this note, we will talk about the placement and run the deal through our ECM framework.


Kokusai Electric Placement - Unexpected Seller but Relatively Small Deal

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.</li>
<li>Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.</li>
<li>Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.</li>
</ul>


Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.
Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.
Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.


Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

<ul>
<li>Three weeks ago I wrote that KKR's lockup would expire about now in <em><a href="https://www.smartkarma.com/insights/japan-ecm-kokusai-elec-6525-kkr-s-lock-up-expiry-in-3-weeks-700mm-clean-up-coming" target="_blank" data-smartkarma-citation="insights:202343" rel="noopener">[Japan ECM] Kokusai Elec (6525) - KKR's Lock Up Expiry in 3 Weeks - $700mm Clean-Up Coming?</a> </em>
</li>
<li>Today post-close, <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> announced a 10.7mm share (4.5%) Accelerated Block Offering to be priced tomorrow morning, at an indicated 4.5-6.5% discount. This would put them at 10+%. </li>
<li>This should be very well taken up. There is index demand on the follow. The question is more about the unwind of KKR's last bit. Perhaps to come soon?</li>
</ul>


Three weeks ago I wrote that KKR's lockup would expire about now in [Japan ECM] Kokusai Elec (6525) - KKR's Lock Up Expiry in 3 Weeks - $700mm Clean-Up Coming? 

Today post-close, Applied Materials (AMAT US) announced a 10.7mm share (4.5%) Accelerated Block Offering to be priced tomorrow morning, at an indicated 4.5-6.5% discount. This would put them at 10+%. 
This should be very well taken up. There is index demand on the follow. The question is more about the unwind of KKR's last bit. Perhaps to come soon?


[Japan ECM] Kokusai Elec (6525) - Applied Materials $330mm Selldown

Japan

Kokusai Electric Corporation manufactures and distributes semiconductor manufacturing systems. The Company produces batch processing systems, single wafer processing systems, and other systems. Kokusai Electric also operates advanced thermal process technology development, training, and other businesses.

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Kokusai Electric (6525 JP)

[Japan ECM] Kokusai Elec (6525) - ANOTHER Applied Materials Selldown

AMAT is selling down its 2nd of what is likely to be 3 tranches of its original holding. After this, it will have not quite 12mm shares to sell. 2x...

Travis Lundy

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

Kokusai Electric Placement - Unexpected Seller but Relatively Small Deal

Applied materials appears to be in the market again to selldown some more of its stake in Kokusai Electric. It last sold in Oct 2025.

Sumeet Singh

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

[Japan ECM] Kokusai Elec (6525) - Applied Materials $330mm Selldown

Kokusai Electric's recent selldown by AMAT has been well-absorbed and with shares up nearly 10% today on AI-related excitement in the hardware/SPE...

Travis Lundy

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