Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Nomura Research Institute / Equity Capital Markets

<ul>
<li>On Friday, <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a> announced that <a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> and <a href="https://www.smartkarma.com/entities/nomura-holdings-inc" target="_blank" data-smartkarma-citation="entities:742:1" rel="noopener">Nomura Holdings (8604 JP)</a> would each sell NRI shares in a Secondary Offering.</li>
<li>JAFCO is selling to fund a giant buyback. Nomura is selling to round out the offering size. The total is 37mm shares plus greenshoe of 5.5mm shares. </li>
<li>At Friday's price that is ~¥140bn (including greenshoe), 7% of shares out, 10% of float, and about 25% of Real World Float. There are index implications.</li>
</ul>


On Friday, Nomura Research Institute Ltd (4307 JP) announced that Jafco Co Ltd (8595 JP) and Nomura Holdings (8604 JP) would each sell NRI shares in a Secondary Offering.
JAFCO is selling to fund a giant buyback. Nomura is selling to round out the offering size. The total is 37mm shares plus greenshoe of 5.5mm shares. 
At Friday's price that is ~¥140bn (including greenshoe), 7% of shares out, 10% of float, and about 25% of Real World Float. There are index implications.


Nomura Research Institute (4307) Large Secondary Offering - Demand Profile and Index Implications

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> has long been known as a "cheap" listed "venture fund" because of its additional large (for it) holding in <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a>.</li>
<li>Well-Known Japanese activist Yoshiaki MURAKAMI and his related companies bought a stake. JAFCO responded with a "Policy" (poison pill). Murakami-san ducked and dodged then bought more. Now the exit. </li>
<li>JAFCO will sell its Nomura Research shares in a Secondary Offering, and conduct a large buyback via tender offer. Like other Murakami exits, this one is not designed for you. </li>
</ul>



Jafco Co Ltd (8595 JP) has long been known as a "cheap" listed "venture fund" because of its additional large (for it) holding in Nomura Research Institute Ltd (4307 JP).
Well-Known Japanese activist Yoshiaki MURAKAMI and his related companies bought a stake. JAFCO responded with a "Policy" (poison pill). Murakami-san ducked and dodged then bought more. Now the exit. 
JAFCO will sell its Nomura Research shares in a Secondary Offering, and conduct a large buyback via tender offer. Like other Murakami exits, this one is not designed for you. 


JAFCO (8595) Yields to Murakami Greenmail - Big Asset Sale, Big Buyback

<ul>
<li>Entities related to noted Japanese activist Yoshiaki Murakami had bought 11+%, suggested 15%, proposed 51%, and pestered <a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> for an asset sale and super-large buyback. </li>
<li>JAFCO decided to launch a poison pill process as a hostile takeover defence mechanism, with the Record Date at August month-end.</li>
<li>The shares popped. I was bearish. It turns out Murakami affiliates sold the pop. And this starts the range trade.</li>
</ul>


Entities related to noted Japanese activist Yoshiaki Murakami had bought 11+%, suggested 15%, proposed 51%, and pestered Jafco Co Ltd (8595 JP) for an asset sale and super-large buyback. 
JAFCO decided to launch a poison pill process as a hostile takeover defence mechanism, with the Record Date at August month-end.
The shares popped. I was bearish. It turns out Murakami affiliates sold the pop. And this starts the range trade.


JAFCO (8595) Down as Murakami Affiliates Sell the Pop on the Poison Pill, So Buy the Range Dip

<ul>
<li>Entities related to noted Japanese activist Murakami Yoshiaki have bought 11.5-15% of <a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> in recent weeks; JAFCO has gotten upset and announced defensive measures.</li>
<li>Murakami wants JAFCO to sell its large stake in <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a> and buy back shares. JAFCO is saving that stake for a rainy day.</li>
<li>The shares have popped. There is a poison pill EGM Record Date coming. It's worth thinking through the implications.</li>
</ul>


Entities related to noted Japanese activist Murakami Yoshiaki have bought 11.5-15% of Jafco Co Ltd (8595 JP) in recent weeks; JAFCO has gotten upset and announced defensive measures.
Murakami wants JAFCO to sell its large stake in Nomura Research Institute Ltd (4307 JP) and buy back shares. JAFCO is saving that stake for a rainy day.
The shares have popped. There is a poison pill EGM Record Date coming. It's worth thinking through the implications.


JAFCO (8595) Vs Murakami - It's On, So We Wait

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.

GoTo Gojek Tokopedia Tbk PT / Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPOs front, Zhihu and the SK twins were the main active deals, with LIC being in the pipeline for a potential launch in the coming week.</li>
<li>Placement flows remained slow over the holiday shortened week. With Japan continuing to favour accelerated book build.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPOs front, Zhihu and the SK twins were the main active deals, with LIC being in the pipeline for a potential launch in the coming week.
Placement flows remained slow over the holiday shortened week. With Japan continuing to favour accelerated book build.


ECM Weekly (17th Apr 2022)- Sk Shieldus, One Store, LIC, GoTo, Zhihu, Park24, PHC Holding, Visional

Japan

Nomura Research Institute, Ltd. provides information technology, research, consulting, and analyzing for business strategy decision-making.  The Company also provides application software for system operation services.

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Nomura Research Institute (4307 JP)

Nomura Research Institute (4307) Large Secondary Offering - Demand Profile and Index Implications

Nomura Research Institute (4307) will see a US$1bn Secondary Offering in the next two weeks. JAFCO is selling out, Nomura is topping up the...

Travis Lundy

JAFCO (8595) Yields to Murakami Greenmail - Big Asset Sale, Big Buyback

JAFCO and Murakami-san have come to an agreement on Murakami-san's greenmail. JAFCO will sell its NRI shares, buy back his shares in a Tender, and...

Travis Lundy

JAFCO (8595) Down as Murakami Affiliates Sell the Pop on the Poison Pill, So Buy the Range Dip

Murakami-san bought 11.9% and JAFCO said he was perhaps interested in buying up to 50% so they announced a poison pill and Murakami sold the pop....

Travis Lundy

JAFCO (8595) Vs Murakami - It's On, So We Wait

Murakami-san bought 11.5-15.0% (or now more?) of listed venture fund JAFCO. NAV is ¥2661-3055/share at end-June, now ¥100-150 higher realtime....

Travis Lundy

ECM Weekly (17th Apr 2022)- Sk Shieldus, One Store, LIC, GoTo, Zhihu, Park24, PHC Holding, Visional

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

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