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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a> has disclosed that the CVC-sponsored MBO price has increased by 28.6% from JPY1,960 to JPY2,520.</li>
<li>The revised terms mark a big win for activists, Murakami and Hibiki. Both activists will tender, with Hibiki reinvesting around 40% of its proceeds into the offeror's parent entity.</li>
<li>The revised terms are attractive, and this is a done deal. The offer closes on 18 December, with payment from 25 December.</li>
</ul>



Mandom Corp (4917 JP) has disclosed that the CVC-sponsored MBO price has increased by 28.6% from JPY1,960 to JPY2,520.
The revised terms mark a big win for activists, Murakami and Hibiki. Both activists will tender, with Hibiki reinvesting around 40% of its proceeds into the offeror's parent entity.
The revised terms are attractive, and this is a done deal. The offer closes on 18 December, with payment from 25 December.


Mandom (4917 JP): A Big Win for Activists as CVC-Sponsored MBO Price Raised to JPY2,520

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a> has proposed countermeasures in response to Murakami’s 18.87% voting stake and to ostensibly secure time for an alternative, viable (higher) offer.</li>
<li>The read-across from the proposal is that CVC’s offer at current terms will fail, CVC is unwilling to match Murakami/Hibiki’s expectations, and there could be genuine interest from third-party bidders. </li>
<li>Nevertheless, countermeasures are unnecessary as the share price and presence of activists provide the time needed for the Board’s purported aim to secure a higher offer.       </li>
</ul>



Mandom Corp (4917 JP) has proposed countermeasures in response to Murakami’s 18.87% voting stake and to ostensibly secure time for an alternative, viable (higher) offer.
The read-across from the proposal is that CVC’s offer at current terms will fail, CVC is unwilling to match Murakami/Hibiki’s expectations, and there could be genuine interest from third-party bidders. 
Nevertheless, countermeasures are unnecessary as the share price and presence of activists provide the time needed for the Board’s purported aim to secure a higher offer.       


Mandom (4917 JP): Countermeasures Ostensibly to Buy Time for a Higher Offer

Equity Capital Markets

FineToday Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/finetoday-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:44092:1" rel="noopener">FineToday Holdings (420A JP)</a>, a Japanese personal care business, is seeking to raise US$280 million. It previously pulled an IPO to raise US$500 million in December 2024.</li>
<li>I previously discussed the investment thesis in <strong><em><a href="https://www.smartkarma.com/insights/finetoday-holdings-420a-jp-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:204929" rel="noopener">FineToday Holdings (420A JP) IPO: The Investment Case</a></em></strong>. </li>
<li>In this note, I present my forecasts and valuation. My analysis suggests that FineToday is fully valued at the IPO price.</li>
</ul>



FineToday Holdings (420A JP), a Japanese personal care business, is seeking to raise US$280 million. It previously pulled an IPO to raise US$500 million in December 2024.
I previously discussed the investment thesis in FineToday Holdings (420A JP) IPO: The Investment Case. 
In this note, I present my forecasts and valuation. My analysis suggests that FineToday is fully valued at the IPO price.


FineToday Holdings (420A JP) IPO: Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/finetoday-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:44092:1" rel="noopener">FineToday Holdings Co Ltd (289A JP)</a>, a Japanese personal care business, is seeking to raise US$286 million. It previously pulled an IPO to raise US$500 million in December 2024.  </li>
<li>FineToday has four product categories: Hair care, Skin care, Body care and others. Hair care is the largest category, accounting for 49.0% of 1H25 revenue.</li>
<li>The investment case rests on top-tier revenue growth, top-quartile profitability, peer-leading FCF generation and manageable leverage. </li>
</ul>



FineToday Holdings Co Ltd (289A JP), a Japanese personal care business, is seeking to raise US$286 million. It previously pulled an IPO to raise US$500 million in December 2024.  
FineToday has four product categories: Hair care, Skin care, Body care and others. Hair care is the largest category, accounting for 49.0% of 1H25 revenue.
The investment case rests on top-tier revenue growth, top-quartile profitability, peer-leading FCF generation and manageable leverage. 


FineToday Holdings (420A JP) IPO: The Investment Case

<ul>
<li>Murakami <a href="https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100WQFH.pdf?sv=2020-08-04&amp;st=2025-09-24T07%3A41%3A14Z&amp;se=2030-09-24T15%3A00%3A00Z&amp;sr=b&amp;sp=rl&amp;sig=pBNXCLzc2M2noizmBySiKIgGaALs0RzHJHz3GWVI7jw%3D" target="_blank" rel="noopener">reported</a> a 7.14% ownership ratio in <a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a>. The average buy-in price of JPY2,070.73 per share is 5.6% above the JPY1,960 CVC-sponsored MBO.</li>
<li>Murakami undoubtedly shares Hibiki’s concerns. On 15 September, Hibiki issued an open letter questioning the rationale behind the Board's recommendation of a CVC-sponsored preconditional MBO. </li>
<li>With the emergence of Murakami, CVC and the founding family’s options narrow. The need for satisfaction of the precondition buys time, but a bump seems inevitable. </li>
</ul>


Murakami reported a 7.14% ownership ratio in Mandom Corp (4917 JP). The average buy-in price of JPY2,070.73 per share is 5.6% above the JPY1,960 CVC-sponsored MBO.
Murakami undoubtedly shares Hibiki’s concerns. On 15 September, Hibiki issued an open letter questioning the rationale behind the Board's recommendation of a CVC-sponsored preconditional MBO. 
With the emergence of Murakami, CVC and the founding family’s options narrow. The need for satisfaction of the precondition buys time, but a bump seems inevitable. 


Mandom (4917 JP): Two Is a Company as Murakami Joins the Fray

Japan

ROHTO PHARMACEUTICAL CO., LTD. manufactures and markets pharmaceuticals and cosmetics products.  The Company's products include eyewash, bath soaps, gastrointestinal medicine, and hand cream.  Rohto Pharmaceutical also has a license agreement with its subsidiary, Mentholatum (US) to sell their brand products.  The Company also manufactures contact lenses and health foods.

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Rohto Pharmaceutical (4527 JP)

Mandom (4917 JP): A Big Win for Activists as CVC-Sponsored MBO Price Raised to JPY2,520

The revised terms mark a big win for activists, Murakami and Hibiki. Both activists will tender, with Hibiki reinvesting around 40% of its...

Arun George

Mandom (4917 JP): Countermeasures Ostensibly to Buy Time for a Higher Offer

The method is regrettable, but the purported intention to secure time for a higher offer is acceptable. The current offer terms are untenable, and...

Arun George

FineToday Holdings (420A JP) IPO: Valuation Insights

In this note, I present my forecasts and valuation. My analysis suggests that FineToday is fully valued at the IPO price.

Arun George

FineToday Holdings (420A JP) IPO: The Investment Case

FineToday, a Japanese personal care business, is seeking to raise US$286 million. In this note, I discuss the investment case.

Arun George

Mandom (4917 JP): Two Is a Company as Murakami Joins the Fray

The tender offer is open from September 26 to November 10 (30 business days). The Board supports the offer and recommends that shareholders tender...

Arun George

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