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/rakuten-bank-ltd" target="_blank" data-smartkarma-citation="entities:35638:1" rel="noopener">Rakuten Bank</a>, the online banking arm of <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>, aims to raise around US$500m (estimated) in its Japan listing in April 2023. </li>
<li>RB is the largest internet bank in Japan, by number of accounts. As of Mar 2023, it had 13.39m deposit accounts with a total deposit base of JPY8.6tn. </li>
<li>In this note we take an early look at the IPO and talk about the positive aspects of its past performance.</li>
</ul>



Rakuten Bank, the online banking arm of Rakuten Inc (4755 JP), aims to raise around US$500m (estimated) in its Japan listing in April 2023. 
RB is the largest internet bank in Japan, by number of accounts. As of Mar 2023, it had 13.39m deposit accounts with a total deposit base of JPY8.6tn. 
In this note we take an early look at the IPO and talk about the positive aspects of its past performance.


Rakuten Bank IPO Early Look - The Positives - Has Grown Fast over the past Few Years

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>With the results of the <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> Tender Offer for <a href="https://www.smartkarma.com/entities/ntt-docomo-inc" target="_blank" data-smartkarma-citation="entities:1089:1" rel="noopener">NTT Docomo Inc (9437 JP)</a> announced yesterday, getting them to 91.46%, this triggers a fast-track change in the Nikkei 225 treatment based on a <a href="https://indexes.nikkei.co.jp/nkave/archives/news/20200615E_1.pdf" target="_blank" rel="noopener">rule change for constituent selection</a> announced on 15 June. </p><p>This was discussed briefly in <a href="https://www.smartkarma.com/insights/surprising-ntt-docomo-tender-result-accelerates-squeezeout-great-re-allocation-nikkei-225-change" target="_blank" data-smartkarma-citation="insights:45412" rel="noopener">Surprising NTT Docomo Tender Result Accelerates Squeezeout, Great Re-Allocation, Nikkei 225 Change</a>.</p><p>The relevant part of the rule change is shown below. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/172/461/original/Screenshot%202020-11-18%20at%202.53.16%20PM.png?1605682411" class="editor-image img-responsive" data-smartkarma-image-id="172461"></figure></section><p></p><p>The first time it was used was with the replacement for <a href="https://www.smartkarma.com/entities/sony-financial-holdings-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Holdings (8729 JP)</a> where the clearance of 90% made delisting a foregone conclusion because it only required the parent to ask. The same is the case here. </p><p>Today, the Nikkei Index Business Office <a href="https://indexes.nikkei.co.jp/nkave/archives/news/20201118E_1.pdf" target="_blank" rel="noopener">announced</a> the replacement for NTT Docomo in the Nikkei 225 Index. It is <a href="https://www.smartkarma.com/entities/sharp-corp" target="_blank" data-smartkarma-citation="entities:391:1" rel="noopener">Sharp Corp (6753 JP)</a> with a presumed par value of 50 yen. The change will be made at the close of trading on 1 December 2020 (8 trading days left). </p><p>This is surprising. Very surprising. <em><strong>And it matters a lot.</strong></em></p><p>Due to the reverse 1:10 share split of end-2017, this <em>should</em> have been a presumed par value of 500 yen. I half wonder whether they made a typo and will correct it. The other possibility is that because it happened while the stock was in the Purgatorio of the Second Section, that data simply didn't register so they ignored it. Which would be a <em>Very Bureaucratic Thing To Do</em>.</p><p>Details on the index rebalance trade below.</p>

With the results of the NTT (Nippon Telegraph &amp; Telephone) (9432 JP) Tender Offer for NTT Docomo Inc (9437 JP) announced yesterday, getting them to 91.46%, this triggers a fast-track change in the Nikkei 225 treatment based on a rule change for constituent selection announced on 15 June. This was discussed briefly in Surprising NTT Docomo Tender Result Accelerates Squeezeout, Great Re-Allocation, Nikkei 225 Change.The relevant part of the rule change is shown below. The first time it was used was with the replacement for Sony Financial Holdings (8729 JP) where the clearance of 90% made delisting a foregone conclusion because it only required the parent to ask. The same is the case here. Today, the Nikkei Index Business Office announced the replacement for NTT Docomo in the Nikkei 225 Index. It is Sharp Corp (6753 JP) with a presumed par value of 50 yen. The change will be made at the close of trading on 1 December 2020 (8 trading days left). This is surprising. Very surprising. And it matters a lot.Due to the reverse 1:10 share split of end-2017, this should have been a presumed par value of 500 yen. I half wonder whether they made a typo and will correct it. The other possibility is that because it happened while the stock was in the Purgatorio of the Second Section, that data simply didn't register so they ignored it. Which would be a Very Bureaucratic Thing To Do.Details on the index rebalance trade below.

NTT Docomo Delisting; Nikkei 225 Replacement Is SHARP (6753) - With a Surprise

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>The results of the JPX Nikkei 400 review have been announced. There are 32 inclusions and 27 deletions to bring the number of constituents back to 400 and the changes will be effective after the close of trading on 27 November.</p><p>The index review is normally effective after the close of trading on  the second last trading day in August, but was postponed by 3 months this year because of the extension given to companies to file their annual reports and quarterly reports to 30 September owing to COVID-19.</p><p>These are the stocks that have been included and excluded from the index.</p><table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td colspan="2" style="text-align: center; width: 181pt;"><h3>Inclusions</h3></td>
<td colspan="2" style="text-align: center; width: 197pt;"><h3>Exclusions</h3></td>
</tr>
<tr>
<td><strong>Name</strong></td>
<td><strong>Code</strong></td>
<td><strong>Name</strong></td>
<td><strong>Code</strong></td>
</tr>
<tr>
<td>1766.T</td>
<td>Token Corp</td>
<td>2124.T</td>
<td>Jac Recruitment Co Ltd</td>
</tr>
<tr>
<td>2222.T</td>
<td>Kotobuki Spirits Co Ltd</td>
<td>2206.T</td>
<td>Ezaki Glico Co Ltd</td>
</tr>
<tr>
<td>2264.T</td>
<td>Morinaga Milk Industry Co Ltd</td>
<td>2432.T</td>
<td>DeNA Co Ltd</td>
</tr>
<tr>
<td>2317.T</td>
<td>Systena Corp</td>
<td>3254.T</td>
<td>Pressance Corp</td>
</tr>
<tr>
<td>2593.T</td>
<td>Ito En Ltd</td>
<td>3668.T</td>
<td>Colopl Inc</td>
</tr>
<tr>
<td>2811.T</td>
<td>Kagome Co Ltd</td>
<td>4246.T</td>
<td>DaikyoNishikawa Corp</td>
</tr>
<tr>
<td>3563.T</td>
<td>Sushiro Global Holdings Ltd</td>
<td>4587.T</td>
<td>PeptiDream Inc</td>
</tr>
<tr>
<td>3635.T</td>
<td>Koei Tecmo Holdings Co Ltd</td>
<td>4681.T</td>
<td>Resorttrust Inc</td>
</tr>
<tr>
<td>4189.T</td>
<td>KH Neochem Co Ltd</td>
<td>4751.T</td>
<td>CyberAgent Inc</td>
</tr>
<tr>
<td>4348.T</td>
<td>Infocom Corp</td>
<td>4902.T</td>
<td>Konica Minolta Inc</td>
</tr>
<tr>
<td>4527.T</td>
<td>Rohto Pharmaceutical Co Ltd</td>
<td>5486.T</td>
<td>Hitachi Metals Ltd</td>
</tr>
<tr>
<td>4686.T</td>
<td>Justsystems Corp</td>
<td>5703.T</td>
<td>Nippon Light Metal Holdings Co Ltd</td>
</tr>
<tr>
<td>4816.T</td>
<td>Toei Animation Co Ltd</td>
<td>5714.T</td>
<td>DOWA Holdings Co Ltd</td>
</tr>
<tr>
<td>4921.T</td>
<td>Fancl Corp</td>
<td>5975.T</td>
<td>Topre Corp</td>
</tr>
<tr>
<td>5105.T</td>
<td>Toyo Tire Corp</td>
<td>6269.T</td>
<td>Modec Inc</td>
</tr>
<tr>
<td>5631.T</td>
<td>Japan Steel Works Ltd</td>
<td>6324.T</td>
<td>Harmonic Drive Systems Inc</td>
</tr>
<tr>
<td>5857.T</td>
<td>Asahi Holdings Inc</td>
<td>6463.T</td>
<td>TPR Co Ltd</td>
</tr>
<tr>
<td>6005.T</td>
<td>Miura Co Ltd</td>
<td>6473.T</td>
<td>Jtekt Corp</td>
</tr>
<tr>
<td>6035.T</td>
<td>IR Japan Holdings Ltd</td>
<td>6641.T</td>
<td>Nissin Electric Co Ltd</td>
</tr>
<tr>
<td>6134.T</td>
<td>Fuji Corp (Aichi)</td>
<td>6755.T</td>
<td>Fujitsu General Ltd</td>
</tr>
<tr>
<td>6465.T</td>
<td>Hoshizaki Corp</td>
<td>6806.T</td>
<td>Hirose Electric Co Ltd</td>
</tr>
<tr>
<td>6532.T</td>
<td>BayCurrent Consulting Inc</td>
<td>7012.T</td>
<td>Kawasaki Heavy Industries Ltd</td>
</tr>
<tr>
<td>6670.T</td>
<td>MCJ Co Ltd</td>
<td>7606.T</td>
<td>United Arrows Ltd</td>
</tr>
<tr>
<td>6753.T</td>
<td>Sharp Corp</td>
<td>7867.T</td>
<td>Tomy Co Ltd</td>
</tr>
<tr>
<td>6754.T</td>
<td>Anritsu Corp</td>
<td>8227.T</td>
<td>Shimamura Co Ltd</td>
</tr>
<tr>
<td>8354.T</td>
<td>Fukuoka Financial Group Inc</td>
<td>8628.T</td>
<td>Matsui Securities Co Ltd</td>
</tr>
<tr>
<td>8572.T</td>
<td>Acom Co Ltd</td>
<td>9404.T</td>
<td>Nippon Television Holdings Inc</td>
</tr>
<tr>
<td>9044.T</td>
<td>Nankai Electric Railway Co Ltd</td>
<td></td>
<td></td>
</tr>
<tr>
<td>9142.T</td>
<td>Kyushu Railway Co</td>
<td></td>
<td></td>
</tr>
<tr>
<td>9504.T</td>
<td>Chugoku Electric Power Co Inc</td>
<td></td>
<td></td>
</tr>
<tr>
<td>9509.T</td>
<td>Hokkaido Electric Power Co Inc</td>
<td></td>
<td></td>
</tr>
<tr>
<td>9603.T</td>
<td>H.I.S. Co Ltd</td>
<td></td>
<td></td>
</tr>
</tbody>
</table>

The results of the JPX Nikkei 400 review have been announced. There are 32 inclusions and 27 deletions to bring the number of constituents back to 400 and the changes will be effective after the close of trading on 27 November.The index review is normally effective after the close of trading on  the second last trading day in August, but was postponed by 3 months this year because of the extension given to companies to file their annual reports and quarterly reports to 30 September owing to COVID-19.These are the stocks that have been included and excluded from the index.








Inclusions
Exclusions


Name
Code
Name
Code


1766.T
Token Corp
2124.T
Jac Recruitment Co Ltd


2222.T
Kotobuki Spirits Co Ltd
2206.T
Ezaki Glico Co Ltd


2264.T
Morinaga Milk Industry Co Ltd
2432.T
DeNA Co Ltd


2317.T
Systena Corp
3254.T
Pressance Corp


2593.T
Ito En Ltd
3668.T
Colopl Inc


2811.T
Kagome Co Ltd
4246.T
DaikyoNishikawa Corp


3563.T
Sushiro Global Holdings Ltd
4587.T
PeptiDream Inc


3635.T
Koei Tecmo Holdings Co Ltd
4681.T
Resorttrust Inc


4189.T
KH Neochem Co Ltd
4751.T
CyberAgent Inc


4348.T
Infocom Corp
4902.T
Konica Minolta Inc


4527.T
Rohto Pharmaceutical Co Ltd
5486.T
Hitachi Metals Ltd


4686.T
Justsystems Corp
5703.T
Nippon Light Metal Holdings Co Ltd


4816.T
Toei Animation Co Ltd
5714.T
DOWA Holdings Co Ltd


4921.T
Fancl Corp
5975.T
Topre Corp


5105.T
Toyo Tire Corp
6269.T
Modec Inc


5631.T
Japan Steel Works Ltd
6324.T
Harmonic Drive Systems Inc


5857.T
Asahi Holdings Inc
6463.T
TPR Co Ltd


6005.T
Miura Co Ltd
6473.T
Jtekt Corp


6035.T
IR Japan Holdings Ltd
6641.T
Nissin Electric Co Ltd


6134.T
Fuji Corp (Aichi)
6755.T
Fujitsu General Ltd


6465.T
Hoshizaki Corp
6806.T
Hirose Electric Co Ltd


6532.T
BayCurrent Consulting Inc
7012.T
Kawasaki Heavy Industries Ltd


6670.T
MCJ Co Ltd
7606.T
United Arrows Ltd


6753.T
Sharp Corp
7867.T
Tomy Co Ltd


6754.T
Anritsu Corp
8227.T
Shimamura Co Ltd


8354.T
Fukuoka Financial Group Inc
8628.T
Matsui Securities Co Ltd


8572.T
Acom Co Ltd
9404.T
Nippon Television Holdings Inc


9044.T
Nankai Electric Railway Co Ltd




9142.T
Kyushu Railway Co




9504.T
Chugoku Electric Power Co Inc




9509.T
Hokkaido Electric Power Co Inc




9603.T
H.I.S. Co Ltd






JPX Nikkei 400 Index Rebalance: Better Late Than Never (32 Adds; 27 Deletes)

<p>Today after the close, <a href="https://www.smartkarma.com/entities/honda-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:154:1" rel="noopener">Honda Motor (7267 JP)</a> announced the successful completion of the three tender offers for subsidiary/affiliates <a href="https://www.smartkarma.com/entities/keihin-corp" target="_blank" data-smartkarma-citation="entities:15395:1" rel="noopener">Keihin Corp (7251 JP)</a>, <a href="https://www.smartkarma.com/entities/showa-corp" target="_blank" data-smartkarma-citation="entities:15079:1" rel="noopener">Showa Corp (7274 JP)</a>, and <a href="https://www.smartkarma.com/entities/nissin-kogyo-co-ltd" target="_blank" data-smartkarma-citation="entities:20362:1" rel="noopener">Nissin Kogyo (7230 JP)</a>.</p>
<p>The resulting ownership changes are as follows:</p>
<table class="table table-striped">
<tbody>
<tr>
<td colspan="7" style="width: 641.714px;">
<h2>The State of the Honda Sub Residuals</h2>
</td>
<td style="width: 58.8571px;"></td>
</tr>
<tr>
<td style="width: 118.286px;"><strong>Stock</strong></td>
<td style="text-align: center; width: 96px;">
<strong>Announcement <br></strong>(click on the ogre to read the doc)</td>
<td style="text-align: center; width: 61.7143px;"><strong>Tender Doc</strong></td>
<td style="text-align: right; width: 56px;"><strong>TOB Price</strong></td>
<td style="text-align: right; width: 65.7143px;">
<strong>Pre-Tender</strong><br><strong>Ownership</strong>
</td>
<td style="text-align: right; width: 68.5714px;">
<strong>Post-Tender</strong><br><strong>Ownership</strong>
</td>
<td style="text-align: right; width: 52px;"><strong>Fast-Track<br>Delisting</strong></td>
<td style="text-align: right; width: 58.8571px;"><strong>Residual</strong></td>
</tr>
<tr>
<td style="width: 118.286px;">Keihin (7251)</td>
<td style="text-align: center; width: 96px;">
<h3><a href="https://global.honda/content/dam/site/global/investors/cq_img/library/filings/CY2020_20201016_TSEfiling_e_1.pdf" target="_blank" rel="noopener">👹</a></h3>
</td>
<td style="text-align: center; width: 61.7143px;">
<h3><a href="https://www.keihin-corp.co.jp/en/ir/pdf/annualreport/annualreport2018.pdf" target="_blank" rel="noopener">👹</a></h3>
</td>
<td style="text-align: right; width: 56px;">¥2600/shr</td>
<td style="text-align: right; width: 65.7143px;">25.30%</td>
<td style="text-align: right; width: 68.5714px;">93.57%</td>
<td style="text-align: right; width: 52px;">
<p>Yes</p>
</td>
<td style="text-align: right; width: 58.8571px;">¥12.36bn</td>
</tr>
<tr>
<td style="width: 118.286px;">Showa Corp (7274)</td>
<td style="text-align: center; width: 96px;">
<h3><a href="https://global.honda/content/dam/site/global/investors/cq_img/library/filings/CY2020_20201016_TSEfiling_e_2.pdf" target="_blank" rel="noopener">👹</a></h3>
</td>
<td style="text-align: center; width: 61.7143px;">
<h3><a href="https://global.honda/content/dam/site/global/investors/cq_img/library/filings/CY2020_20200901_TSEfiling_e_2.pdf" target="_blank" rel="noopener">👹</a></h3>
</td>
<td style="text-align: right; width: 56px;">¥2300/shr</td>
<td style="text-align: right; width: 65.7143px;">33.14%</td>
<td style="text-align: right; width: 68.5714px;">92.13%</td>
<td style="text-align: right; width: 52px;">Yes</td>
<td style="text-align: right; width: 58.8571px;">¥13.75bn</td>
</tr>
<tr>
<td style="width: 118.286px;">Nissin Kogyo (7230)</td>
<td style="text-align: center; width: 96px;">
<h3><a href="https://global.honda/content/dam/site/global/investors/cq_img/library/filings/CY2020_20201016_TSEfiling_e_3.pdf" target="_blank" rel="noopener">👹</a></h3>
</td>
<td style="text-align: center; width: 61.7143px;">
<h3><a href="https://global.honda/content/dam/site/global/investors/cq_img/library/filings/CY2020_20200901_TSEfiling_e_3.pdf" target="_blank" rel="noopener">👹</a></h3>
</td>
<td style="text-align: right; width: 56px;">¥2250/shr</td>
<td style="text-align: right; width: 65.7143px;">31.61%</td>
<td style="text-align: right; width: 68.5714px;">92.44%</td>
<td style="text-align: right; width: 52px;">Yes</td>
<td style="text-align: right; width: 58.8571px;">¥11.07bn</td>
</tr>
</tbody>
</table>
<p>The results are a little surprising in that all the names managed to get to 92+%. This indicates that some of the passive-tracking TOPIX holders sold into the tender, or their shares were tendered by being borrowed. </p>
<p>This leaves a setup trade.</p>

Today after the close, Honda Motor (7267 JP) announced the successful completion of the three tender offers for subsidiary/affiliates Keihin Corp (7251 JP), Showa Corp (7274 JP), and Nissin Kogyo (7230 JP).
The resulting ownership changes are as follows:




The State of the Honda Sub Residuals




Stock

Announcement  (click on the ogre to read the doc)
Tender Doc
TOB Price

Pre-Tender Ownership


Post-Tender Ownership

Fast-Track Delisting
Residual


Keihin (7251)

👹


👹

¥2600/shr
25.30%
93.57%

Yes

¥12.36bn


Showa Corp (7274)

👹


👹

¥2300/shr
33.14%
92.13%
Yes
¥13.75bn


Nissin Kogyo (7230)

👹


👹

¥2250/shr
31.61%
92.44%
Yes
¥11.07bn



The results are a little surprising in that all the names managed to get to 92+%. This indicates that some of the passive-tracking TOPIX holders sold into the tender, or their shares were tendered by being borrowed. 
This leaves a setup trade.

Honda Tenders Done - Now For The Residuals

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p>Bloomberg reported today that Roblox had filed confidentially for a public offering targeting a valuation of $8bn, roughly double the reported $4bn valuation at which it raised $150m in a series G that involved Andreesen Horowitz and Tencent. Below, we examine the company’s product and business model.</p>

Bloomberg reported today that Roblox had filed confidentially for a public offering targeting a valuation of $8bn, roughly double the reported $4bn valuation at which it raised $150m in a series G that involved Andreesen Horowitz and Tencent. Below, we examine the company’s product and business model.

Roblox IPO Preview – Unique Positioning

Japan

Sony Financial Holdings Inc. is a financial holding company.  The Company, through its subsidiaries, offers life insurance, non-life insurance, banking, and other financial services.

Price Gauge
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Sony Financial Holdings (8729 JP)

Rakuten Bank IPO Early Look - The Positives - Has Grown Fast over the past Few Years

Rakuten Bank, the online banking arm of Rakuten Inc (4755 JP), aims to raise around US$500m in its Japan listing in April 2023. In this note, we...

Sumeet Singh

NTT Docomo Delisting; Nikkei 225 Replacement Is SHARP (6753) - With a Surprise

In Sharp (6753) Nikkei has offered an unsurprising replacement for Docomo in the Nikkei 225, but the terms are unexpected (and a trifle...

Travis Lundy

JPX Nikkei 400 Index Rebalance: Better Late Than Never (32 Adds; 27 Deletes)

There are 32 inclusions and 27 exclusions from the JPX Nikkei 400. The changes will be effective after the close of trading on 27 November and the...

Brian Freitas

Honda Tenders Done - Now For The Residuals

Honda secures 92-93% of each of its parts affiliates under Tender Offer. Expect a Delisting end-November or so, and cash payment early-mid Jan2021....

Travis Lundy

Roblox IPO Preview – Unique Positioning

We preview the upcoming listing of minigame sandbox Roblox whose closest peers Minecraft and Fortnite underline its potential, but it is Roblox's...

Mio Kato

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52-week Range

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