IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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> is a Japanese financial institution. At the IPO price, it will raise JPY322 billion (US$2.1 billion). The shares will be listed on 17 December.</li>
<li>I previously discussed the IPO 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><a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:211514" rel="noopener"> </a>and <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-price-range-is-attractive" target="_blank" data-smartkarma-citation="insights:212880" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive</a>.</li>
<li>The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.</li>
</ul>



SBI Shinsei Bank (8303 JP) is a Japanese financial institution. At the IPO price, it will raise JPY322 billion (US$2.1 billion). The shares will be listed on 17 December.
I previously discussed the IPO in SBI Shinsei Bank (8303 JP) IPO: The Investment Case and SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive.
The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.


SBI Shinsei Bank (8303 JP) IPO: Trading Debut

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In the TOPIX Index, some "low liquidity" names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.</li>
<li>These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.</li>
<li>The results for April 2025 liquidity factor removal have been confirmed and we achieved very high hit rates for our High and Medium conviction baskets.</li>
</ul>


In the TOPIX Index, some "low liquidity" names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.
The results for April 2025 liquidity factor removal have been confirmed and we achieved very high hit rates for our High and Medium conviction baskets.


TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!

<ul>
<li>In the TOPIX Index, some "low liquidity" names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.</li>
<li>These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.</li>
<li>In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2025 and their flow implications.</li>
</ul>


In the TOPIX Index, some "low liquidity" names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.
In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2025 and their flow implications.


TOPIX Index Upweights: Final Expectations For "The Big April Basket" 2025

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>Recently, IT-solutions company <a href="https://www.smartkarma.com/entities/baudroie-inc" target="_blank" data-smartkarma-citation="entities:44459:1" rel="noopener">Baudroie (4413 JP)</a> announced a move to the Prime Market. This would result in a TOPIX Inclusion event for the stock at the end of April 2025.</li>
<li>Separately, the TOPIX Liquidity factor removal event will take place in April 2025 and there could be some positive index flows for <a href="https://www.smartkarma.com/entities/tokyo-metro-co-ltd" target="_blank" data-smartkarma-citation="entities:40930:1" rel="noopener">Tokyo Metro (9023 JP)</a> during this event.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Recently, IT-solutions company Baudroie (4413 JP) announced a move to the Prime Market. This would result in a TOPIX Inclusion event for the stock at the end of April 2025.
Separately, the TOPIX Liquidity factor removal event will take place in April 2025 and there could be some positive index flows for Tokyo Metro (9023 JP) during this event.


TOPIX Inclusions: Who Is Ready (Mar 2025)

Event-Driven

<ul>
<li>The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation.</li>
<li>For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation.</li>
<li>Every April, the application of this liquidity factor is reviewed by the TSE. In this insight, we take an early look at what could happen in April 2025.</li>
</ul>


The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation.
For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation.
Every April, the application of this liquidity factor is reviewed by the TSE. In this insight, we take an early look at what could happen in April 2025.


TOPIX Index Upweights: An Early Preview Of "The Big April Basket" 2025

Japan

Tokyo Metro Co., Ltd. operates railway businesses. The Company conducts passenger rail transportation, urban design and lifestyle creation, real estate, and other projects. Tokyo Metro serves customers in Japan.

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Tokyo Metro (9023 JP)

SBI Shinsei Bank (8303 JP) IPO: Trading Debut

The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.

Arun George

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!

Our LONG Tokyo Metro outperformed the TOPIX Index by 22% from 27th January 2025 to 7th April 2025 and ended up as one of the best performing names...

Janaghan Jeyakumar, CFA

TOPIX Index Upweights: Final Expectations For "The Big April Basket" 2025

The TOPIX Liquidity Factor (0.75x) changes for April 2025 will be officially announced after the close today (7th April 2025) and the actual index...

Janaghan Jeyakumar, CFA

TOPIX Inclusions: Who Is Ready (Mar 2025)

There are currently 100 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 133 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

TOPIX Index Upweights: An Early Preview Of "The Big April Basket" 2025

The base date for the April 2025 Liquidity Factor Removal calculations is 28th February 2025. Until then, share price movements could cause names...

Janaghan Jeyakumar, CFA

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