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/genda-inc" target="_blank" data-smartkarma-citation="entities:39911:1" rel="noopener">GENDA (9166 JP),</a> along with a selling shareholder, is looking to raise around US$190m to partly fund its M&amp;A.</li>
<li>Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



GENDA (9166 JP), along with a selling shareholder, is looking to raise around US$190m to partly fund its M&amp;A.
Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
In this note, we will talk about the placement and run the deal through our ECM framework.


GENDA Placement - Good Track Record & Sort off Well Flagged but Relatively Large

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On Friday, <a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank-ltd" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a> fell 12.5% in the last 90 minutes of trading. This was not due to their Q3 earnings release (out 30 January).</li>
<li>It seemed due to investor disappointment in the content of the NTT earnings call. As discussed in the forked insight, there had been speculation NTT would buy SBI Sumishin.</li>
<li>Investors had thought NTT would pay more than 28x earnings and a ¥600bn premium to book to buy the business. At 23.7x Mar25e EPS and 4.1x book, it's still expensive.</li>
</ul>


On Friday, SBI Sumishin Net Bank (7163 JP) fell 12.5% in the last 90 minutes of trading. This was not due to their Q3 earnings release (out 30 January).
It seemed due to investor disappointment in the content of the NTT earnings call. As discussed in the forked insight, there had been speculation NTT would buy SBI Sumishin.
Investors had thought NTT would pay more than 28x earnings and a ¥600bn premium to book to buy the business. At 23.7x Mar25e EPS and 4.1x book, it's still expensive.


SBI Sumishin NetBank (7163) - Oops! NTT Docomo May Not Be There As a Buyer

<ul>
<li>Ping An Insurance bought into a small Tokyo-based condo developer in 2017 at ¥255/share. In 2020, it reinvested on the dip with SBI at ¥155/share.</li>
<li>Ping An and SBI started with zero shares. By 2020 they had 80+% of shares. Now they are selling out to <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a>. </li>
<li>This is a done deal at a slight premium to book value. Daito Trust buys Real Estate Available for Sale and assumes debt. That's it. Easy peasy done deal. </li>
</ul>


Ping An Insurance bought into a small Tokyo-based condo developer in 2017 at ¥255/share. In 2020, it reinvested on the dip with SBI at ¥155/share.
Ping An and SBI started with zero shares. By 2020 they had 80+% of shares. Now they are selling out to Daito Trust Construct (1878 JP). 
This is a done deal at a slight premium to book value. Daito Trust buys Real Estate Available for Sale and assumes debt. That's it. Easy peasy done deal. 


Daito Trust Buys Out Listed Private Co Ascot (3264 JP) - Small Done Deal at ¥260

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/ascot-corp" target="_blank" data-smartkarma-citation="entities:9576:1" rel="noopener">Ascot Corp (3264 JP)</a> announced a tender offer from <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a> at JPY260 per share, a 20.4% premium to the last close.</li>
<li>Ascot currently does not meet the 25% tradeable share ratio criterion. The offer is attractive compared to historical trading ranges but below the mid-point of the IFA DCF valuation range.</li>
<li>This is a done deal, as irrevocables represent an 82.78% ownership ratio, well above the minimum acceptance condition (67.86% ownership ratio).  </li>
</ul>



Ascot Corp (3264 JP) announced a tender offer from Daito Trust Construct (1878 JP) at JPY260 per share, a 20.4% premium to the last close.
Ascot currently does not meet the 25% tradeable share ratio criterion. The offer is attractive compared to historical trading ranges but below the mid-point of the IFA DCF valuation range.
This is a done deal, as irrevocables represent an 82.78% ownership ratio, well above the minimum acceptance condition (67.86% ownership ratio).  


Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener"></a>MUFG (8306) bought 15.5% of <a href="https://www.smartkarma.com/entities/wealthnavi-inc" target="_blank" data-smartkarma-citation="entities:31058:1" rel="noopener">WealthNavi (7342 JP)</a> in February at ¥1,718/share - zero premium. The shares fell. Now they are bidding for the rest 13.5% higher.</li>
<li>WealthNavi forecasts fantastic growth. Dec29 OP is <em>specifically estimated</em> at ¥13.822bn. Everyone agrees there are synergies, but they're not "valued" because they <em>"cannot be specifically estimated at this moment." </em>
</li>
<li>I believe investors should start demanding Synergy CVRs of acquirors when synergies are not included in the fair value calculations. </li>
</ul>



MUFG (8306) bought 15.5% of WealthNavi (7342 JP) in February at ¥1,718/share - zero premium. The shares fell. Now they are bidding for the rest 13.5% higher.
WealthNavi forecasts fantastic growth. Dec29 OP is specifically estimated at ¥13.822bn. Everyone agrees there are synergies, but they're not "valued" because they "cannot be specifically estimated at this moment." 

I believe investors should start demanding Synergy CVRs of acquirors when synergies are not included in the fair value calculations. 


MUFG Launches a TOB to Take Out Robo-Advisor WealthNavi (7342) - The 81.4% Premium Is Light

Japan

SBI Holdings, Inc. manages venture capital fund which mainly invest in Internet related venture companies.  The Company also provides brokerage, investment banking, and financial services.

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SBI Holdings (8473 JP)

GENDA Placement - Good Track Record & Sort off Well Flagged but Relatively Large

GENDA (9166 JP), along with a selling shareholder, is looking to raise around US$190m to partly fund its M&A. In this note, we talk about the deal...

Sumeet Singh

SBI Sumishin NetBank (7163) - Oops! NTT Docomo May Not Be There As a Buyer

SBI Sumishin went limit up in late Nov2024 when a weekly suggested NTT was interested. I thought not, but the stock rose 50% in 10wks. Friday NTT...

Travis Lundy

Daito Trust Buys Out Listed Private Co Ascot (3264 JP) - Small Done Deal at ¥260

Daito Trust is buying out the investor owners of 86% of Ascot Corp, a small Tokyo-based condo developer. It's a done deal as the three with 86%...

Travis Lundy

Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal

The offer is below the midpoint of the IFA DCF valuation range. However, this is a done deal, as irrevocables are well above the minimum number of...

Arun George

MUFG Launches a TOB to Take Out Robo-Advisor WealthNavi (7342) - The 81.4% Premium Is Light

MUFG is acquiring WealthNavi. It's probably cheap vis-a-vis growth. The lack of synergies in the consideration is disappointing. But this deal...

Travis Lundy

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