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>In response to a Nikkei article, <a href="https://www.smartkarma.com/entities/wealthnavi-inc" target="_blank" data-smartkarma-citation="entities:31058:1" rel="noopener">WealthNavi (7342 JP)</a> disclosed <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a>’s tender offer at JPY1,950 per share, an 84.3% premium to the undisturbed price.</li>
<li>The high premium reflects WealthNavi's steep 46% YTD share price decline, i.e., the timing is opportunistic. The offer is below the Board’s requested price.</li>
<li>While the irrevocable has a competing offer clause, a competing proposal is unlikely due to MUFG’s stake. However, a bump is possible if activist(s) take around a 15% stake. </li>
</ul>


In response to a Nikkei article, WealthNavi (7342 JP) disclosed Mitsubishi UFJ Financial (MUFG) (8306 JP)’s tender offer at JPY1,950 per share, an 84.3% premium to the undisturbed price.
The high premium reflects WealthNavi's steep 46% YTD share price decline, i.e., the timing is opportunistic. The offer is below the Board’s requested price.
While the irrevocable has a competing offer clause, a competing proposal is unlikely due to MUFG’s stake. However, a bump is possible if activist(s) take around a 15% stake. 


WealthNavi (7342 JP): MUFG (8306 JP)’s Opportunistic Tender Offer

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.

Equity Bottom-Up

<ul>
<li>Monex’s SPAC of its TradeStation business highlighted the hidden potential of its non-crypto assets.</li>
<li>While its domestic business has traditionally been volatile and not grown profit especially quickly that appears to be changing.</li>
<li>We examine the potential of the company’s regional bank tie-ups below.</li>
</ul>


Monex’s SPAC of its TradeStation business highlighted the hidden potential of its non-crypto assets.
While its domestic business has traditionally been volatile and not grown profit especially quickly that appears to be changing.
We examine the potential of the company’s regional bank tie-ups below.


Monex – Examining the Domestic Business

Equity Capital Markets

<ul>
<li>WealthNavi will be selling 2.98m shares to raise new capital and allow SBI Holdings to reduce its stake.</li>
<li>SBI will simultaneously sell its convertible bonds back to WealthNavi and these will be refinanced with a loan from MUFG.</li>
<li>The stock has done well since results and looks attractive in our view.</li>
</ul>


WealthNavi will be selling 2.98m shares to raise new capital and allow SBI Holdings to reduce its stake.
SBI will simultaneously sell its convertible bonds back to WealthNavi and these will be refinanced with a loan from MUFG.
The stock has done well since results and looks attractive in our view.


<p>We like WealthNavi’s business model and believe the company can grow steadily and achieve high profit margins over time. However, IPO valuations seem to imply the potential for very high sustained growth rates which makes us uncomfortable.</p>

We like WealthNavi’s business model and believe the company can grow steadily and achieve high profit margins over time. However, IPO valuations seem to imply the potential for very high sustained growth rates which makes us uncomfortable.

WealthNavi – Better for the Long-Term and a Bit Expensive Looking

<p>WealthNavi is a company that aims to make investing easy for Japan’s notoriously financially conservative public through its robo-advisor of the same name. With a variety of high-profile partners acting as distributors of its product and an aggressively expanding direct sales business, growth prospects look bright.</p>

WealthNavi is a company that aims to make investing easy for Japan’s notoriously financially conservative public through its robo-advisor of the same name. With a variety of high-profile partners acting as distributors of its product and an aggressively expanding direct sales business, growth prospects look bright.

WealthNavi – Simplifying Investment for Japan

Japan

WealthNavi Inc. operates wealth management platform "WealthNavi". The Company provides "long-term, funded, diversified" asset management services including goal setting, portfolio building, ordering, funding, reinvestment, rebalancing, and tax optimization, risk management, financial consulting, and other services. WealthNavi provides its services throughout Japan.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

WealthNavi (7342 JP)