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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>, the largest Asian integrated logistics service provider, has filed for an H Share listing to raise US$2-3 billion, according to press reports.   </li>
<li>SF is the largest integrated logistics service player in China and Asia, and the fourth largest player globally, in terms of revenue in 2022, according to Frost &amp; Sullivan.</li>
<li>The key elements of the investment case rest on the primary business’ improving fundamentals, margin trajectory, cash generation, modest leverage and undemanding PEG multiples.</li>
</ul>



S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, has filed for an H Share listing to raise US$2-3 billion, according to press reports.   
SF is the largest integrated logistics service player in China and Asia, and the fourth largest player globally, in terms of revenue in 2022, according to Frost &amp; Sullivan.
The key elements of the investment case rest on the primary business’ improving fundamentals, margin trajectory, cash generation, modest leverage and undemanding PEG multiples.


S.F. Holding H Share Listing: The Investment Case

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>Japan-Based System-On-Chip designer and IP purveyor <a href="https://www.smartkarma.com/entities/socionext-inc" target="_blank" data-smartkarma-citation="entities:36351:1" rel="noopener">Socionext (6526 JP)</a> was listed in the "Prime" section of the Tokyo Stock Exchange (TSE) on 12th October 2022.</li>
<li>When a company gets listed in the Prime section, it subsequently gets included in the TOPIX Index requiring TOPIX-tracking funds to purchase the stock during an Inclusion Event.</li>
<li>Usually, this presents interesting trading opportunities to generate sharp market-neutral returns in the space of few trading days. Below is a look at the details for Socionext's TOPIX Inclusion Event.</li>
</ul>


Japan-Based System-On-Chip designer and IP purveyor Socionext (6526 JP) was listed in the "Prime" section of the Tokyo Stock Exchange (TSE) on 12th October 2022.
When a company gets listed in the Prime section, it subsequently gets included in the TOPIX Index requiring TOPIX-tracking funds to purchase the stock during an Inclusion Event.
Usually, this presents interesting trading opportunities to generate sharp market-neutral returns in the space of few trading days. Below is a look at the details for Socionext's TOPIX Inclusion Event.


TOPIX Inclusion: Socionext (6526 JP) - Momentum Is Fading, Exit Now.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<ul>
<li>The KKR deal for <a href="https://www.smartkarma.com/entities/hitachi-transport-system-ltd" target="_blank" data-smartkarma-citation="entities:2395:1" rel="noopener">Hitachi Transport System (9086 JP)</a> is here. </li>
<li>Some were worried KKR would walk. That was never a worry. Some worried Russia wouldn't approve. There was always a way. </li>
<li>This deal should trade tight. New money might be better allocated elsewhere. Arbitrageurs and investors should be wary of the index effects of the TOPIX FFW adjustment tomorrow at close.</li>
</ul>


The KKR deal for Hitachi Transport System (9086 JP) is here. 
Some were worried KKR would walk. That was never a worry. Some worried Russia wouldn't approve. There was always a way. 
This deal should trade tight. New money might be better allocated elsewhere. Arbitrageurs and investors should be wary of the index effects of the TOPIX FFW adjustment tomorrow at close.


Hitachi Transport (9086) - KKR Deal Is Here And There Are Index Implications

<ul>
<li>In January 2022, <a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit Holdings (6098 JP)</a> launched a Tender Offer buyback to buy back shares from NTT Data, Hakuhodo, and TBS. </li>
<li>Today, Recruit announced another buyback of up to 42mm shares (2.57% of shares out) spending up to ¥150bn, to go from now until 14 March 2023 (5mos).</li>
<li>This time the buyback should have better traction and market impact, but it is not overwhelming, and the impact will likely lessen at higher share prices.</li>
</ul>


In January 2022, Recruit Holdings (6098 JP) launched a Tender Offer buyback to buy back shares from NTT Data, Hakuhodo, and TBS. 
Today, Recruit announced another buyback of up to 42mm shares (2.57% of shares out) spending up to ¥150bn, to go from now until 14 March 2023 (5mos).
This time the buyback should have better traction and market impact, but it is not overwhelming, and the impact will likely lessen at higher share prices.


Recruit (6098) Launches ANOTHER Big Buyback

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.

<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 IPO front, a few large Hong Kong IPOs are lining up to launch soon.</li>
<li>Placements picked up this week in Japan and India with most being secondary deals.</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 IPO front, a few large Hong Kong IPOs are lining up to launch soon.
Placements picked up this week in Japan and India with most being secondary deals.


ECM Weekly (12th Sep 2022) - Onewo, CALB, YSB, Medanta, Beneunder, JMDC, SH Holdings, Indigo

Japan

SG Holdings Co., Ltd. offers courier services. The Company provides goods delivery, cargo logistics, goods pickup, and other services. SG Holdings also operates real estate development, human resources management, and other businesses.

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SG Holdings (9143 JP)

TOPIX Inclusion: Socionext (6526 JP) - Momentum Is Fading, Exit Now.

Socionext's TOPIX Inclusion event is on 29th November 2022. There could roughly 3mn shares to buy but the momentum is fading and that might be a...

Janaghan Jeyakumar, CFA

Hitachi Transport (9086) - KKR Deal Is Here And There Are Index Implications

KKR deal for Hitachi Transport is now on. This was a good deal for investors at the start. It is a better deal now. Take the money and run. And...

Travis Lundy

Recruit (6098) Launches ANOTHER Big Buyback

Recruit has announced another large buyback - the second one this year announced at ¥150bn. This one is from the market, meaning some price impact...

Travis Lundy

ECM Weekly (12th Sep 2022) - Onewo, CALB, YSB, Medanta, Beneunder, JMDC, SH Holdings, Indigo

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

S.F. Holding H Share Listing: The Investment Case

The key elements of the investment case rest on the primary business’ improving fundamentals, margin trajectory, cash generation, modest leverage...

Arun George

TOPIX Inclusion: Socionext (6526 JP) - Momentum Is Fading, Exit Now.

Socionext's TOPIX Inclusion event is on 29th November 2022. There could roughly 3mn shares to buy but the momentum is fading and that might be a...

Janaghan Jeyakumar, CFA

Hitachi Transport (9086) - KKR Deal Is Here And There Are Index Implications

KKR deal for Hitachi Transport is now on. This was a good deal for investors at the start. It is a better deal now. Take the money and run. And...

Travis Lundy

Recruit (6098) Launches ANOTHER Big Buyback

Recruit has announced another large buyback - the second one this year announced at ¥150bn. This one is from the market, meaning some price impact...

Travis Lundy

ECM Weekly (12th Sep 2022) - Onewo, CALB, YSB, Medanta, Beneunder, JMDC, SH Holdings, Indigo

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