Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Goldman Sachs will take Raksul private via a ~¥100bn MBO, restoring meaningful governance influence to the founder—one of the most explicitly founder-aligned take-privates in Japan’s tech sector.</li>
<li>Public markets consistently undervalued Raksul’s multi-vertical SME platform; going private enables longer-horizon investment, selective M&amp;A, and disciplined scaling across printing, logistics, marketing tech, and adjacent digital services.</li>
<li>Deal completion probability is high (90–95%): a fair premium, full founder support, and limited interloper risk leave minority shareholders best served by tendering into the offer.</li>
</ul>


Goldman Sachs will take Raksul private via a ~¥100bn MBO, restoring meaningful governance influence to the founder—one of the most explicitly founder-aligned take-privates in Japan’s tech sector.
Public markets consistently undervalued Raksul’s multi-vertical SME platform; going private enables longer-horizon investment, selective M&amp;A, and disciplined scaling across printing, logistics, marketing tech, and adjacent digital services.
Deal completion probability is high (90–95%): a fair premium, full founder support, and limited interloper risk leave minority shareholders best served by tendering into the offer.


Raksul (4384 JP): Goldman-Backed Founder MBO Highlights Japan’s New Tech Take-Private Cycle

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/raksul-inc" target="_blank" data-smartkarma-citation="entities:27043:1" rel="noopener">Raksul Inc (4384 JP)</a> is a business roll-up business. They do printing, and advertising, and marketing, and supply. They want to be all things to all SMEs. </li>
<li>They are pretty good at it. Revenues and EBIT have been growing at 20-30% a year for years, and are scheduled to grow 19% and 26% for several years ahead.</li>
<li>The bid is up 40% from last, but that gets them to a 30-month high. The register is very open. Lots of active institutional shareholders who have to agree. Maybe.</li>
</ul>



Raksul Inc (4384 JP) is a business roll-up business. They do printing, and advertising, and marketing, and supply. They want to be all things to all SMEs. 
They are pretty good at it. Revenues and EBIT have been growing at 20-30% a year for years, and are scheduled to grow 19% and 26% for several years ahead.
The bid is up 40% from last, but that gets them to a 30-month high. The register is very open. Lots of active institutional shareholders who have to agree. Maybe.


[Japan M&A] CEO & Chairman Entice GS to Sponsor an MBO for Recently Lackluster Raksul (4384)

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/raksul-inc" target="_blank" data-smartkarma-citation="entities:27043:1" rel="noopener">Raksul Inc (4384 JP)</a> has recommended a <a href="https://www.smartkarma.com/entities/goldman-sachs-group-inc" target="_blank" data-smartkarma-citation="entities:785:1" rel="noopener">Goldman Sachs Group (GS US)</a>-sponsored MBO at JPY1,710, a 39.5% premium to the last close.</li>
<li>While the process is lacking (no auction), the offer is reasonable compared to peer multiples, analyst price targets and historical trading ranges. </li>
<li>The offer aligns with the midpoint of the target IFA DCF valuation range. Barring an emergence of an activist, this should get done. </li>
</ul>



Raksul Inc (4384 JP) has recommended a Goldman Sachs Group (GS US)-sponsored MBO at JPY1,710, a 39.5% premium to the last close.
While the process is lacking (no auction), the offer is reasonable compared to peer multiples, analyst price targets and historical trading ranges. 
The offer aligns with the midpoint of the target IFA DCF valuation range. Barring an emergence of an activist, this should get done. 


Raksul (4384 JP): GS-Sponsored MBO at JPY1,710

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation. For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation. This affects both TSE-1 incumbents and new entrants (depending on the date of entry). Every April, the application of this liquidity factor is reviewed by the TSE for all TSE1 constituents. Last April, 71 constituents saw their liquidity factors removed causing an increase in their respective FFWs used for index calculation resulting in a TOPIX upweight.This situation opens up interesting opportunities for a basket trade. Below is a discussion regarding the key details of TSE's FFW Calculation Methodology and the candidate stocks which could potentially experience a change in the application of the liquidity factor (including some surprisingly big names).

The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation. For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation. This affects both TSE-1 incumbents and new entrants (depending on the date of entry). Every April, the application of this liquidity factor is reviewed by the TSE for all TSE1 constituents. Last April, 71 constituents saw their liquidity factors removed causing an increase in their respective FFWs used for index calculation resulting in a TOPIX upweight.This situation opens up interesting opportunities for a basket trade. Below is a discussion regarding the key details of TSE's FFW Calculation Methodology and the candidate stocks which could potentially experience a change in the application of the liquidity factor (including some surprisingly big names).   

TOPIX Index Upweights: The Big April Basket 2021

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>Raksul operates niche B2B online marketplaces in Japan with exceptional shareholder alignment</li><li>Recent dip in stock value due to market trends, but shows promise for 2-4x returns in next two years</li><li>Unique approach to collecting tolls on indirect costs for SMEs in Japan sets them apart in the industry</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Raksul operates niche B2B online marketplaces in Japan with exceptional shareholder alignmentRecent dip in stock value due to market trends, but shows promise for 2-4x returns in next two yearsUnique approach to collecting tolls on indirect costs for SMEs in Japan sets them apart in the industryThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Japan

Raksul, Inc. provides Internet based services. The Company mainly offers net printing, net transportation, and other services. Raksul provides services in Japan.

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Raksul Inc (4384 JP)

Raksul (4384 JP): Goldman-Backed Founder MBO Highlights Japan’s New Tech Take-Private Cycle

Goldman Sachs to take Raksul private in a founder-aligned MBO, unlocking growth potential in undervalued tech sector. Minority shareholders...

Rahul Jain

Raksul (4384 JP): GS-Sponsored MBO at JPY1,710

While the process is lacking, the offer is reasonable compared to peer multiples, analyst price targets and historical trading ranges. Barring an...

Arun George

TOPIX Index Upweights: The Big April Basket 2021

TOPIX does an annual exercise to adjust Liquidity Factor. The time for trades around that is upon us. This insight looks at the best trade around...

Janaghan Jeyakumar, CFA

Raksul (4384) - Tuesday, Sep 10, 2024

Raksul operates niche B2B online marketplaces in Japan with exceptional shareholder alignment. Recent dip in stock value due to market trends, but...

Value Investors Club (VIC)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Raksul (4384 JP): Goldman-Backed Founder MBO Highlights Japan’s New Tech Take-Private Cycle

​Goldman Sachs to take Raksul private in a founder-aligned MBO, unlocking growth potential in undervalued tech sector. Minority shareholders...

Rahul Jain

[Japan M&A] CEO & Chairman Entice GS to Sponsor an MBO for Recently Lackluster Raksul (4384)

Founder+CEO launch MBO with GS where GS gets 90% of the economics, 50% of the voting rights. This is 11x NTM EBITDA for mid-20s EBIT growth, near...

Travis Lundy

Raksul (4384 JP): GS-Sponsored MBO at JPY1,710

While the process is lacking, the offer is reasonable compared to peer multiples, analyst price targets and historical trading ranges. Barring an...

Arun George

TOPIX Index Upweights: The Big April Basket 2021

TOPIX does an annual exercise to adjust Liquidity Factor. The time for trades around that is upon us. This insight looks at the best trade around...

Janaghan Jeyakumar, CFA

Raksul (4384) - Tuesday, Sep 10, 2024

Raksul operates niche B2B online marketplaces in Japan with exceptional shareholder alignment. Recent dip in stock value due to market trends, but...

Value Investors Club (VIC)

Goldman Sachs to take Raksul private in a founder-aligned MBO, unlocking growth potential in undervalued tech sector. Minority shareholders...