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

SBI Shinsei Bank / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a>, a Japanese financial institution, has set an IPO price range of JPY1,440 to JPY1,450 per share compared to the reference price of JPY1,440.</li>
<li>I discussed the relisting in <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:211376" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:211514" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: Valuation Insights</a>. </li>
<li>The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.</li>
</ul>



SBI Shinsei Bank (8303 JP), a Japanese financial institution, has set an IPO price range of JPY1,440 to JPY1,450 per share compared to the reference price of JPY1,440.
I discussed the relisting in SBI Shinsei Bank (8303 JP) IPO: The Investment Case and SBI Shinsei Bank (8303 JP) IPO: Valuation Insights. 
The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.


SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a>, a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%.</li>
<li>I discussed the investment thesis in <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:211376" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: The Investment Case</a>. </li>
<li>In this note, I discuss valuation. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share. </li>
</ul>



SBI Shinsei Bank (8303 JP), a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%.
I discussed the investment thesis in SBI Shinsei Bank (8303 JP) IPO: The Investment Case. 
In this note, I discuss valuation. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share. 


SBI Shinsei Bank (8303 JP) IPO: Valuation Insights

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

Shizuoka Financial Group  / Equity Bottom-Up

<ul>
<li>Shizuoka’s has healthy gearing to rising interest rates and its ratio of equity holdings value to market cap is attractive; yet we feel that it is time to take profits</li>
<li>Shizuoka’s valuations are no longer compelling, with PE multiples and PEG ratios at the less attractive end relative to peers; it also has the highest LDR of the peer group</li>
<li>In addition, Shizuoka has relatively high unrealized losses on its JGB portfolio and these have grow QoQ to September-end 2025</li>
</ul>


Shizuoka’s has healthy gearing to rising interest rates and its ratio of equity holdings value to market cap is attractive; yet we feel that it is time to take profits
Shizuoka’s valuations are no longer compelling, with PE multiples and PEG ratios at the less attractive end relative to peers; it also has the highest LDR of the peer group
In addition, Shizuoka has relatively high unrealized losses on its JGB portfolio and these have grow QoQ to September-end 2025


Shizuoka Financial (5831 JP) – Sound 2QFY25 Results, but We Recommend Taking Profits

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/brainpad-inc" target="_blank" data-smartkarma-citation="entities:11499:1" rel="noopener">Brainpad Inc (3655 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/fujitsu-ltd" target="_blank" data-smartkarma-citation="entities:16968:1" rel="noopener">Fujitsu Ltd (6702 JP)</a> at JPY2,706, a 100.0% premium to the undisturbed price.</li>
<li>The offer is attractive compared to historical trading ranges and is above the midpoint of the target IFA DCF valuation range. </li>
<li>The huge takeover premium resulted from an auction. The tender offer runs from 31 October to 15 December (30 business days). This is a done deal.  </li>
</ul>



Brainpad Inc (3655 JP) has recommended a tender offer from Fujitsu Ltd (6702 JP) at JPY2,706, a 100.0% premium to the undisturbed price.
The offer is attractive compared to historical trading ranges and is above the midpoint of the target IFA DCF valuation range. 
The huge takeover premium resulted from an auction. The tender offer runs from 31 October to 15 December (30 business days). This is a done deal.  


BrainPad (3655 JP): Fujitsu (6702 JP)’s 100% Premium Tender Offer

<ul>
<li>Along with political turbulence, expectations of a near term BoJ rate hike may be diminishing; nonetheless, we believe that these rate hikes will, at worst, be delayed and not derailed</li>
<li>We take profits on Mizuho in big caps and on Hirogin Holdings in mid-caps, downgrading these names from buy to neutral whilst generally retaining banks with higher levels of cross-holdings</li>
<li>We maintain the following Japanese banks on buy ratings; in the big-caps, we keep Resona and Shizuoka and in the mid-caps we stick with Iyogin Holdings, Hokuhoku and Hachijuni</li>
</ul>


Along with political turbulence, expectations of a near term BoJ rate hike may be diminishing; nonetheless, we believe that these rate hikes will, at worst, be delayed and not derailed
We take profits on Mizuho in big caps and on Hirogin Holdings in mid-caps, downgrading these names from buy to neutral whilst generally retaining banks with higher levels of cross-holdings
We maintain the following Japanese banks on buy ratings; in the big-caps, we keep Resona and Shizuoka and in the mid-caps we stick with Iyogin Holdings, Hokuhoku and Hachijuni


Japanese Banks – We Clip Our Key Positive Picks in the Big-Caps and Mid-Caps

Japan

Resona Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides financial services, including banking, trust operations, and credit card services. Resona Holdings also offers consulting services related to personal loans, asset management, and asset succession.

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Resona Holdings (8308 JP)

SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive

The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.

Arun George

SBI Shinsei Bank (8303 JP) IPO: Valuation Insights

SBI Shinsei is seeking to raise about US$2 billion. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share.

Arun George

BrainPad (3655 JP): Fujitsu (6702 JP)’s 100% Premium Tender Offer

The huge takeover premium resulted from an auction. The offer is attractive compared to historical trading ranges and is above the midpoint of the...

Arun George

Japanese Banks – We Clip Our Key Positive Picks in the Big-Caps and Mid-Caps

With easier-for-longer monetary policy in Japan being a growing risk, we keep buys on select big and mid-cap banks with big equity cross-holdings,...

Victor Galliano

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive

The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.

Arun George

SBI Shinsei Bank (8303 JP) IPO: Valuation Insights

SBI Shinsei is seeking to raise about US$2 billion. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share.

Arun George

Shizuoka Financial (5831 JP) – Sound 2QFY25 Results, but We Recommend Taking Profits

​Shizuoka's healthy gearing and high value of equity holdings are overshadowed by less compelling valuations, high LDR, and growing unrealized...

Victor Galliano

BrainPad (3655 JP): Fujitsu (6702 JP)’s 100% Premium Tender Offer

The huge takeover premium resulted from an auction. The offer is attractive compared to historical trading ranges and is above the midpoint of the...

Arun George

Japanese Banks – We Clip Our Key Positive Picks in the Big-Caps and Mid-Caps

​With easier-for-longer monetary policy in Japan being a growing risk, we keep buys on select big and mid-cap banks with big equity cross-holdings,...

Victor Galliano

Shizuoka's healthy gearing and high value of equity holdings are overshadowed by less compelling valuations, high LDR, and growing unrealized...

With easier-for-longer monetary policy in Japan being a growing risk, we keep buys on select big and mid-cap banks with big equity cross-holdings,...