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>
<a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> (JPH) aims to sell around US$4bn worth of <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a> (JPB), trimming its stake to below 50%.</li>
<li>JPH had last sold around US$9bn worth of JPB shares in Mar 2023. That deal had a similar structure and it didn’t end up performing well.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Japan Post Holdings (6178 JP) (JPH) aims to sell around US$4bn worth of Japan Post Bank (7182 JP) (JPB), trimming its stake to below 50%.
JPH had last sold around US$9bn worth of JPB shares in Mar 2023. That deal had a similar structure and it didn’t end up performing well.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Japan Post Bank US$4bn Placement - Smaller Deal, Similar Structure, Might Yield Similar Results

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sumitomo-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:20269:1" rel="noopener">Sumitomo Chemical (4005 JP)</a> and Mizuho Trust &amp; Banking are looking to raise around US$180m through the sale of their stake in <a href="https://www.smartkarma.com/entities/inabata-co-ltd" target="_blank" data-smartkarma-citation="entities:5558:1" rel="noopener">Inabata &amp; Co (8098 JP)</a>.</li>
<li>The deal is a large one to digest, at 90 days of three month ADV and 15% of current mcap. </li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Sumitomo Chemical (4005 JP) and Mizuho Trust &amp; Banking are looking to raise around US$180m through the sale of their stake in Inabata &amp; Co (8098 JP).
The deal is a large one to digest, at 90 days of three month ADV and 15% of current mcap. 
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Inabata & Co Placement - Should Come as a Surprise

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Nikkei 225 Rebalance to boot <a href="https://www.smartkarma.com/entities/shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">Shinsei Bank (8303 JP)</a> and add <a href="https://www.smartkarma.com/entities/orix-corp" target="_blank" data-smartkarma-citation="entities:9936:1" rel="noopener">Orix Corp (8591 JP)</a> occurs today at the close. </li>
<li>The announcement was not a surprise per se, but BOTH have outperformed their Peer Baskets since the announcement, ORIX by a long ways.</li>
<li>ORIX is a bigger deal, Shinsei is worth buying a dip.</li>
</ul>


The Nikkei 225 Rebalance to boot Shinsei Bank (8303 JP) and add Orix Corp (8591 JP) occurs today at the close. 
The announcement was not a surprise per se, but BOTH have outperformed their Peer Baskets since the announcement, ORIX by a long ways.
ORIX is a bigger deal, Shinsei is worth buying a dip.


Nikkei 225 Rebalance Day - Shinsei Dip Chance?

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>Last evening post market close, the results of the JPX Nikkei 400 review were announced. There are 41 inclusions and 40 deletions to bring the number of constituents back to 400 and the changes will be effective after the close of trading on 30 August.</p><p>This is the list of inclusions and exclusions.</p><table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td colspan="2" style="text-align: center; width: 396.578px;"><h3>Inclusions</h3></td>
<td colspan="2" style="text-align: center; width: 349.422px;"><h3>Exclusions</h3></td>
</tr>
<tr>
<td style="width: 75.2969px;">1417.T</td>
<td style="width: 321.281px;">Mirait Holdings Corp</td>
<td style="width: 84.3281px;">1333.T</td>
<td style="width: 265.094px;">Maruha Nichiro Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">1942.T</td>
<td style="width: 321.281px;">Kandenko Co Ltd</td>
<td style="width: 84.3281px;">2222.T</td>
<td style="width: 265.094px;">Kotobuki Spirits Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">1973.T</td>
<td style="width: 321.281px;">NEC Networks &amp; System Integration Corp</td>
<td style="width: 84.3281px;">3086.T</td>
<td style="width: 265.094px;">J.Front Retailing Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">2281.T</td>
<td style="width: 321.281px;">Prima Meat Packers Ltd</td>
<td style="width: 84.3281px;">3197.T</td>
<td style="width: 265.094px;">Skylark Holdings Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">3244.T</td>
<td style="width: 321.281px;">Samty Co Ltd</td>
<td style="width: 84.3281px;">4185.T</td>
<td style="width: 265.094px;">JSR Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">3254.T</td>
<td style="width: 321.281px;">Pressance Corp</td>
<td style="width: 84.3281px;">4189.T</td>
<td style="width: 265.094px;">KH Neochem Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">3880.T</td>
<td style="width: 321.281px;">Daio Paper Corp</td>
<td style="width: 84.3281px;">4324.T</td>
<td style="width: 265.094px;">Dentsu Group Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">3923.T</td>
<td style="width: 321.281px;">Rakus Co Ltd</td>
<td style="width: 84.3281px;">4530.T</td>
<td style="width: 265.094px;">Hisamitsu Pharmaceutical Co Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">3941.T</td>
<td style="width: 321.281px;">Rengo Co Ltd</td>
<td style="width: 84.3281px;">4666.T</td>
<td style="width: 265.094px;">Park24 Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">4205.T</td>
<td style="width: 321.281px;">Zeon Corp</td>
<td style="width: 84.3281px;">4755.T</td>
<td style="width: 265.094px;">Rakuten Group Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">4552.T</td>
<td style="width: 321.281px;">JCR Pharmaceuticals Co Ltd</td>
<td style="width: 84.3281px;">5401.T</td>
<td style="width: 265.094px;">Nippon Steel Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">4553.T</td>
<td style="width: 321.281px;">Towa Pharmaceutical Co Ltd</td>
<td style="width: 84.3281px;">5411.T</td>
<td style="width: 265.094px;">JFE Holdings Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">4587.T</td>
<td style="width: 321.281px;">PeptiDream Inc</td>
<td style="width: 84.3281px;">5801.T</td>
<td style="width: 265.094px;">Furukawa Electric Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">4812.T</td>
<td style="width: 321.281px;">Information Services International-Dentsu Ltd</td>
<td style="width: 84.3281px;">6481.T</td>
<td style="width: 265.094px;">THK Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">4848.T</td>
<td style="width: 321.281px;">Fullcast Holdings Co Ltd</td>
<td style="width: 84.3281px;">6588.T</td>
<td style="width: 265.094px;">Toshiba Tec Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">4901.T</td>
<td style="width: 321.281px;">Fujifilm Holdings Corp</td>
<td style="width: 84.3281px;">6753.T</td>
<td style="width: 265.094px;">Sharp Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">5706.T</td>
<td style="width: 321.281px;">Mitsui Mining and Smelting Co Ltd</td>
<td style="width: 84.3281px;">6770.T</td>
<td style="width: 265.094px;">Alps Alpine Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">6055.T</td>
<td style="width: 321.281px;">Japan Material Co Ltd</td>
<td style="width: 84.3281px;">6877.T</td>
<td style="width: 265.094px;">Obara Group Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">6183.T</td>
<td style="width: 321.281px;">BELLSYSTEM24 Holdings Inc</td>
<td style="width: 84.3281px;">7261.T</td>
<td style="width: 265.094px;">Mazda Motor Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">6235.T</td>
<td style="width: 321.281px;">Optorun Co Ltd</td>
<td style="width: 84.3281px;">7458.T</td>
<td style="width: 265.094px;">Daiichikosho Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">6361.T</td>
<td style="width: 321.281px;">Ebara Corp</td>
<td style="width: 84.3281px;">7731.T</td>
<td style="width: 265.094px;">Nikon Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">6544.T</td>
<td style="width: 321.281px;">Japan Elevator Service Holdings Co Ltd</td>
<td style="width: 84.3281px;">7751.T</td>
<td style="width: 265.094px;">Canon Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">6727.T</td>
<td style="width: 321.281px;">Wacom Co Ltd</td>
<td style="width: 84.3281px;">8267.T</td>
<td style="width: 265.094px;">Aeon Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">7177.T</td>
<td style="width: 321.281px;">GMO Financial Holdings Inc</td>
<td style="width: 84.3281px;">9001.T</td>
<td style="width: 265.094px;">Tobu Railway Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">7516.T</td>
<td style="width: 321.281px;">Kohnan Shoji Co Ltd</td>
<td style="width: 84.3281px;">9003.T</td>
<td style="width: 265.094px;">Sotetsu Holdings Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">7947.T</td>
<td style="width: 321.281px;">FP Corp</td>
<td style="width: 84.3281px;">9005.T</td>
<td style="width: 265.094px;">Tokyu Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">8194.T</td>
<td style="width: 321.281px;">Life Corp</td>
<td style="width: 84.3281px;">9007.T</td>
<td style="width: 265.094px;">Odakyu Electric Railway Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">8425.T</td>
<td style="width: 321.281px;">Mizuho Leasing Co Ltd</td>
<td style="width: 84.3281px;">9008.T</td>
<td style="width: 265.094px;">Keio Corp</td>
</tr>
<tr>
<td style="width: 75.2969px;">8595.T</td>
<td style="width: 321.281px;">JAFCO Group Co Ltd</td>
<td style="width: 84.3281px;">9009.T</td>
<td style="width: 265.094px;">Keisei Electric Railway Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">8892.T</td>
<td style="width: 321.281px;">Es-con Japan Ltd</td>
<td style="width: 84.3281px;">9020.T</td>
<td style="width: 265.094px;">East Japan Railway Co</td>
</tr>
<tr>
<td style="width: 75.2969px;">8919.T</td>
<td style="width: 321.281px;">Katitas Co Ltd</td>
<td style="width: 84.3281px;">9021.T</td>
<td style="width: 265.094px;">West Japan Railway Co</td>
</tr>
<tr>
<td style="width: 75.2969px;">9069.T</td>
<td style="width: 321.281px;">Senko Group Holdings Co Ltd</td>
<td style="width: 84.3281px;">9024.T</td>
<td style="width: 265.094px;">Seibu Holdings Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">9090.T</td>
<td style="width: 321.281px;">Maruwa Unyu Kikan Co Ltd</td>
<td style="width: 84.3281px;">9041.T</td>
<td style="width: 265.094px;">Kintetsu Group Holdings Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">9101.T</td>
<td style="width: 321.281px;">Nippon Yusen KK</td>
<td style="width: 84.3281px;">9044.T</td>
<td style="width: 265.094px;">Nankai Electric Railway Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">9104.T</td>
<td style="width: 321.281px;">Mitsui OSK Lines Ltd</td>
<td style="width: 84.3281px;">9045.T</td>
<td style="width: 265.094px;">Keihan Holdings Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">9143.T</td>
<td style="width: 321.281px;">SG Holdings Co Ltd</td>
<td style="width: 84.3281px;">9048.T</td>
<td style="width: 265.094px;">Nagoya Railroad Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">9375.T</td>
<td style="width: 321.281px;">Kintetsu World Express Inc</td>
<td style="width: 84.3281px;">9201.T</td>
<td style="width: 265.094px;">Japan Airlines Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">9418.T</td>
<td style="width: 321.281px;">USEN NEXT HOLDINGS Co Ltd</td>
<td style="width: 84.3281px;">9202.T</td>
<td style="width: 265.094px;">ANA Holdings Inc</td>
</tr>
<tr>
<td style="width: 75.2969px;">9517.T</td>
<td style="width: 321.281px;">eREX Co Ltd</td>
<td style="width: 84.3281px;">9603.T</td>
<td style="width: 265.094px;">H.I.S. Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">9519.T</td>
<td style="width: 321.281px;">Renova Inc</td>
<td style="width: 84.3281px;">9706.T</td>
<td style="width: 265.094px;">Japan Airport Terminal Co Ltd</td>
</tr>
<tr>
<td style="width: 75.2969px;">9787.T</td>
<td style="width: 321.281px;">Aeon Delight Co Ltd</td>
<td style="width: 84.3281px;"></td>
<td style="width: 265.094px;"></td>
</tr>
</tbody>
</table><p>Estimated one-way turnover at the rebalance is 8.16% and will result in a trade of JPY 468bn.</p><p>Among the inclusions, the largest impacts will be on <a href="https://www.smartkarma.com/entities/daio-paper-corp" target="_blank" data-smartkarma-citation="entities:3211:1" rel="noopener">Daio Paper Corp (3880 JP)</a>, <a href="https://www.smartkarma.com/entities/mizuho-leasing-co-ltd" target="_blank" data-smartkarma-citation="entities:12780:1" rel="noopener">Mizuho Leasing Co (8425 JP)</a>, <a href="https://www.smartkarma.com/entities/sg-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:26070:1" rel="noopener">SG Holdings (9143 JP)</a>, <a href="https://www.smartkarma.com/entities/katitas-co-ltd" target="_blank" data-smartkarma-citation="entities:26073:1" rel="noopener">Katitas Co Ltd (8919 JP)</a>, <a href="https://www.smartkarma.com/entities/aeon-delight-co-ltd" target="_blank" data-smartkarma-citation="entities:16763:1" rel="noopener">Aeon Delight (9787 JP)</a>, <a href="https://www.smartkarma.com/entities/japan-elevator-service-holdi" target="_blank" data-smartkarma-citation="entities:25910:1" rel="noopener">Japan Elevator Service Holdi (6544 JP)</a>, <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>, <a href="https://www.smartkarma.com/entities/senko-group-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5287:1" rel="noopener">SENKO Group Holdings Co., Ltd. (9069 JP)</a>, <a href="https://www.smartkarma.com/entities/fp-corp" target="_blank" data-smartkarma-citation="entities:7703:1" rel="noopener">Fp Corp (7947 JP)</a> and <a href="https://www.smartkarma.com/entities/prima-meat-packers-ltd" target="_blank" data-smartkarma-citation="entities:8035:1" rel="noopener">Prima Meat Packers (2281 JP)</a>.</p><p>Deletions with the largest impacts will be <a href="https://www.smartkarma.com/entities/odakyu-electric-railway-co-ltd" target="_blank" data-smartkarma-citation="entities:5405:1" rel="noopener">Odakyu Electric Railway (9007 JP)</a>, <a href="https://www.smartkarma.com/entities/nankai-electric-railway-co" target="_blank" data-smartkarma-citation="entities:633:1" rel="noopener">Nankai Electric Railway Co (9044 JP)</a>, <a href="https://www.smartkarma.com/entities/keio-corp" target="_blank" data-smartkarma-citation="entities:1223:1" rel="noopener">Keio Corp (9008 JP)</a>, <a href="https://www.smartkarma.com/entities/sotetsu-holdings-inc" target="_blank" data-smartkarma-citation="entities:20274:1" rel="noopener">Sotetsu Holdings (9003 JP)</a>, <a href="https://www.smartkarma.com/entities/tobu-railway-co-ltd" target="_blank" data-smartkarma-citation="entities:15463:1" rel="noopener">Tobu Railway (9001 JP)</a>, <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a>, <a href="https://www.smartkarma.com/entities/tokyu-corp" target="_blank" data-smartkarma-citation="entities:3357:1" rel="noopener">Tokyu Corp (9005 JP)</a>, <a href="https://www.smartkarma.com/entities/keisei-electric-railway-co" target="_blank" data-smartkarma-citation="entities:10876:1" rel="noopener">Keisei Electric Railway Co (9009 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-tec-corp" target="_blank" data-smartkarma-citation="entities:17697:1" rel="noopener">Toshiba Tec (6588 JP)</a> and <a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a>.</p><p>There are changes proposed to the index, mainly on selection criteria for stocks and on qualitative criteria including appointment of independent outside directors and of female corporate directors.</p>

Last evening post market close, the results of the JPX Nikkei 400 review were announced. There are 41 inclusions and 40 deletions to bring the number of constituents back to 400 and the changes will be effective after the close of trading on 30 August.This is the list of inclusions and exclusions.








Inclusions
Exclusions


1417.T
Mirait Holdings Corp
1333.T
Maruha Nichiro Corp


1942.T
Kandenko Co Ltd
2222.T
Kotobuki Spirits Co Ltd


1973.T
NEC Networks &amp; System Integration Corp
3086.T
J.Front Retailing Co Ltd


2281.T
Prima Meat Packers Ltd
3197.T
Skylark Holdings Co Ltd


3244.T
Samty Co Ltd
4185.T
JSR Corp


3254.T
Pressance Corp
4189.T
KH Neochem Co Ltd


3880.T
Daio Paper Corp
4324.T
Dentsu Group Inc


3923.T
Rakus Co Ltd
4530.T
Hisamitsu Pharmaceutical Co Inc


3941.T
Rengo Co Ltd
4666.T
Park24 Co Ltd


4205.T
Zeon Corp
4755.T
Rakuten Group Inc


4552.T
JCR Pharmaceuticals Co Ltd
5401.T
Nippon Steel Corp


4553.T
Towa Pharmaceutical Co Ltd
5411.T
JFE Holdings Inc


4587.T
PeptiDream Inc
5801.T
Furukawa Electric Co Ltd


4812.T
Information Services International-Dentsu Ltd
6481.T
THK Co Ltd


4848.T
Fullcast Holdings Co Ltd
6588.T
Toshiba Tec Corp


4901.T
Fujifilm Holdings Corp
6753.T
Sharp Corp


5706.T
Mitsui Mining and Smelting Co Ltd
6770.T
Alps Alpine Co Ltd


6055.T
Japan Material Co Ltd
6877.T
Obara Group Inc


6183.T
BELLSYSTEM24 Holdings Inc
7261.T
Mazda Motor Corp


6235.T
Optorun Co Ltd
7458.T
Daiichikosho Co Ltd


6361.T
Ebara Corp
7731.T
Nikon Corp


6544.T
Japan Elevator Service Holdings Co Ltd
7751.T
Canon Inc


6727.T
Wacom Co Ltd
8267.T
Aeon Co Ltd


7177.T
GMO Financial Holdings Inc
9001.T
Tobu Railway Co Ltd


7516.T
Kohnan Shoji Co Ltd
9003.T
Sotetsu Holdings Inc


7947.T
FP Corp
9005.T
Tokyu Corp


8194.T
Life Corp
9007.T
Odakyu Electric Railway Co Ltd


8425.T
Mizuho Leasing Co Ltd
9008.T
Keio Corp


8595.T
JAFCO Group Co Ltd
9009.T
Keisei Electric Railway Co Ltd


8892.T
Es-con Japan Ltd
9020.T
East Japan Railway Co


8919.T
Katitas Co Ltd
9021.T
West Japan Railway Co


9069.T
Senko Group Holdings Co Ltd
9024.T
Seibu Holdings Inc


9090.T
Maruwa Unyu Kikan Co Ltd
9041.T
Kintetsu Group Holdings Co Ltd


9101.T
Nippon Yusen KK
9044.T
Nankai Electric Railway Co Ltd


9104.T
Mitsui OSK Lines Ltd
9045.T
Keihan Holdings Co Ltd


9143.T
SG Holdings Co Ltd
9048.T
Nagoya Railroad Co Ltd


9375.T
Kintetsu World Express Inc
9201.T
Japan Airlines Co Ltd


9418.T
USEN NEXT HOLDINGS Co Ltd
9202.T
ANA Holdings Inc


9517.T
eREX Co Ltd
9603.T
H.I.S. Co Ltd


9519.T
Renova Inc
9706.T
Japan Airport Terminal Co Ltd


9787.T
Aeon Delight Co Ltd




Estimated one-way turnover at the rebalance is 8.16% and will result in a trade of JPY 468bn.Among the inclusions, the largest impacts will be on Daio Paper Corp (3880 JP), Mizuho Leasing Co (8425 JP), SG Holdings (9143 JP), Katitas Co Ltd (8919 JP), Aeon Delight (9787 JP), Japan Elevator Service Holdi (6544 JP), Kandenko Co Ltd (1942 JP), SENKO Group Holdings Co., Ltd. (9069 JP), Fp Corp (7947 JP) and Prima Meat Packers (2281 JP).Deletions with the largest impacts will be Odakyu Electric Railway (9007 JP), Nankai Electric Railway Co (9044 JP), Keio Corp (9008 JP), Sotetsu Holdings (9003 JP), Tobu Railway (9001 JP), Aeon Co Ltd (8267 JP), Tokyu Corp (9005 JP), Keisei Electric Railway Co (9009 JP), Toshiba Tec (6588 JP) and Hisamitsu Pharmaceutical Co (4530 JP).There are changes proposed to the index, mainly on selection criteria for stocks and on qualitative criteria including appointment of independent outside directors and of female corporate directors.

JPX Nikkei 400 Index Rebalance: Big Turnover, Big Impact & A Market Consultation

Equity Bottom-Up

<div><p>On the 19th of April 2019, <a href="https://www.smartkarma.com/entities/ricoh-co-ltd" target="_blank" data-smartkarma-citation="entities:15359:1" rel="noopener">Ricoh Co Ltd (7752 JP)</a> held an Investor Day conference discussing the 19th Mid Term Management Plan, and its long-term capital plan to return profits made in the 19th Plan to investors. In mid-2019, activist Effissimo Capital Management - which had been building a large position for 3+ years - announced it had gotten to 19% and would go activist. In late 2019, another Investor Day laid the groundwork for the 20th Mid-Term Management Plan. On the 27th of March 2020 the company held an <a href="https://www.ricoh.com/IR/events/investors_meeting" target="_blank" rel="noopener">Investors Meeting</a>. There was continued discussion of how the company had gone through the pain of realising a few years ago how they were in real trouble, and how they then made significant efforts to change that, and they reiterated the ongoing MTMP goal to pay out a fair chunk of accumulated capital. </p></div><div><p>In the <em>previous</em> two Mid-Term Management Plans (MTMPs), called "Resurgent" and "Ignite", respectively, the company led by CEO "Jake" Yamashita undertook structural reform to create cost savings of ¥100bn (mostly fixing the sales structure in the US, cutting out HQ costs and using RPA ("Robotic Process Automation") everywhere, and streamlining in-house production). They also started cutting businesses which had not delivered margin and revenue improvements. They announced they would stop supporting fraud-hit Ricoh India in late 2017 (a case finally resolved in early 2019), took impairments on Ikon and Mindshift in 2018, deciding to sell their long-held position (tied to Ricoh's founder) in <a href="https://www.smartkarma.com/entities/coca-cola-bottlers-japan" target="_blank" data-smartkarma-citation="entities:20051:1" rel="noopener">Coca Cola Bottlers Japan (2579 JP)</a> that year to help them smooth out the large losses. In May 2018 they sold Ricoh Logistics. That seemed to get them "over the hump" as Yamashita-san said then, and the growth strategy outlined in mid-2018 concentrated on industrial commercial printing and more features in MFPs to create a better "digital services business."</p></div><div><p>In early March 2020, they announced they were going to sell 20% of <a href="https://www.smartkarma.com/entities/ricoh-leasing-co-ltd" target="_blank" data-smartkarma-citation="entities:9144:1" rel="noopener">Ricoh Leasing (8566 JP)</a>to <a href="https://www.smartkarma.com/entities/mizuho-leasing-co-ltd" target="_blank" data-smartkarma-citation="entities:12780:1" rel="noopener">Mizuho Leasing Co (8425 JP)</a>, which would allow them to de-consolidate Ricoh Leasing, completely changing the optics of Ricoh's consolidated debt position. </p></div><p>The company in its March 2020 Investor Day gave a further preview of the next Mid-Term Plan for FY20-22 called "Lift Off" which was supposed to be fully announced in May 2020 (and which Yamashita-san had previously previewed in November 2019). There would be digital services and capital returns, responding to the constant pressure from activist firm Effissimo Capital Management which had lifted its position to 19% in late 2019 and changed the purpose of their holding to "making important recommendations to management" then too. The stock hit a four-year high just before Q3 earnings came out in February, fell in March 2020, but there was hope. </p><p><em><strong>I wrote about the situation originally in <a href="https://www.smartkarma.com/insights/ricoh-s-big-buyback-potential-the-timing-is-right" target="_blank" data-smartkarma-citation="insights:38518" rel="noopener">Ricoh's BIG Buyback Potential - The Timing Is Right</a>. </strong></em></p><p>Unfortunately, when full-year earnings came out, the issues facing office supply and documentation businesses in the US and Europe as covid-19 worsened slightly delayed the execution of the Capital Return Plan at the start of the new MTP. I wrote about the timing and the relative trade in <a href="https://www.smartkarma.com/insights/ricoh-redux-get-long-vs-comps" target="_blank" data-smartkarma-citation="insights:39155" rel="noopener"><em><strong>Ricoh Redux:  Get Long Vs Comps</strong></em></a> in early May 2020.</p><p>By the start of calendar Q4 however, after Ricoh had outperformed by 25+% in 5 months, forward forecasts for Ricoh earnings started to deteriorate much faster than for rivals and I recommended taking off the trade in <a href="https://www.smartkarma.com/insights/ricoh-reductively-reduced-bullishness-so-take-off-the-trade" target="_blank" data-smartkarma-citation="insights:42625" rel="noopener"><em><strong>Ricoh (Reductively) - Reduced Bullishness So Take Off the Trade</strong></em></a>. </p><p>The buyback would come, but the Valley of the Shadow of Covid was deep and wide. </p><h3>The NEW News Today</h3><p>Ricoh today announced it would launch its buyback, of up to 145,000,000 shares (20.02%) spending up to ¥100 billion. Once the buyback is completed, the company will retire the repurchased shares PLUS another 20,000,000 shares. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/192/081/original/Screenshot+2021-03-03+at+7.38.47+PM.png?1614771571" class="editor-image img-responsive" data-smartkarma-image-id="192081"></figure><p></p></section><div class="content-highlight"><p>This is big news, and deserves a much closer look.</p></div>

On the 19th of April 2019, Ricoh Co Ltd (7752 JP) held an Investor Day conference discussing the 19th Mid Term Management Plan, and its long-term capital plan to return profits made in the 19th Plan to investors. In mid-2019, activist Effissimo Capital Management - which had been building a large position for 3+ years - announced it had gotten to 19% and would go activist. In late 2019, another Investor Day laid the groundwork for the 20th Mid-Term Management Plan. On the 27th of March 2020 the company held an Investors Meeting. There was continued discussion of how the company had gone through the pain of realising a few years ago how they were in real trouble, and how they then made significant efforts to change that, and they reiterated the ongoing MTMP goal to pay out a fair chunk of accumulated capital. In the previous two Mid-Term Management Plans (MTMPs), called "Resurgent" and "Ignite", respectively, the company led by CEO "Jake" Yamashita undertook structural reform to create cost savings of ¥100bn (mostly fixing the sales structure in the US, cutting out HQ costs and using RPA ("Robotic Process Automation") everywhere, and streamlining in-house production). They also started cutting businesses which had not delivered margin and revenue improvements. They announced they would stop supporting fraud-hit Ricoh India in late 2017 (a case finally resolved in early 2019), took impairments on Ikon and Mindshift in 2018, deciding to sell their long-held position (tied to Ricoh's founder) in Coca Cola Bottlers Japan (2579 JP) that year to help them smooth out the large losses. In May 2018 they sold Ricoh Logistics. That seemed to get them "over the hump" as Yamashita-san said then, and the growth strategy outlined in mid-2018 concentrated on industrial commercial printing and more features in MFPs to create a better "digital services business."In early March 2020, they announced they were going to sell 20% of Ricoh Leasing (8566 JP)to Mizuho Leasing Co (8425 JP), which would allow them to de-consolidate Ricoh Leasing, completely changing the optics of Ricoh's consolidated debt position. The company in its March 2020 Investor Day gave a further preview of the next Mid-Term Plan for FY20-22 called "Lift Off" which was supposed to be fully announced in May 2020 (and which Yamashita-san had previously previewed in November 2019). There would be digital services and capital returns, responding to the constant pressure from activist firm Effissimo Capital Management which had lifted its position to 19% in late 2019 and changed the purpose of their holding to "making important recommendations to management" then too. The stock hit a four-year high just before Q3 earnings came out in February, fell in March 2020, but there was hope. I wrote about the situation originally in Ricoh's BIG Buyback Potential - The Timing Is Right. Unfortunately, when full-year earnings came out, the issues facing office supply and documentation businesses in the US and Europe as covid-19 worsened slightly delayed the execution of the Capital Return Plan at the start of the new MTP. I wrote about the timing and the relative trade in Ricoh Redux:  Get Long Vs Comps in early May 2020.By the start of calendar Q4 however, after Ricoh had outperformed by 25+% in 5 months, forward forecasts for Ricoh earnings started to deteriorate much faster than for rivals and I recommended taking off the trade in Ricoh (Reductively) - Reduced Bullishness So Take Off the Trade. The buyback would come, but the Valley of the Shadow of Covid was deep and wide. The NEW News TodayRicoh today announced it would launch its buyback, of up to 145,000,000 shares (20.02%) spending up to ¥100 billion. Once the buyback is completed, the company will retire the repurchased shares PLUS another 20,000,000 shares. This is big news, and deserves a much closer look.

Ricoh Buyback Redux - It's On, It's Big. Crossholders Vs Activist Vs Public. Who Sells?

Japan

Mizuho Leasing Company, Limited operates as a leasing company. The Company provides finance leasing, operating leasing, automobile leasing, real estate leasing, and other services.  Mizuho Leasing also offers payment outsourcing, installment sales, and other services.

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Mizuho Leasing (8425 JP)

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Ricoh Buyback Redux - It's On, It's Big. Crossholders Vs Activist Vs Public. Who Sells?

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