In today’s briefing:
- Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring
- Tsumura (4540 JP) Equity Offering – Easy To Swallow, and Not Expensive
- Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance
- PhonePe IPO: Walmart-Backed India Fintech Preps for Listing. A Quick Primer
- Chifeng Jilong A/H Listing: Riding on the Gold Rush
Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring
- Sotetsu Holdings (9003 JP) today announced a large-ish secondary equity offering – 10% of shares out and 20% of Max Real World Float.
- This is crossholders selling down roughly 30% of what they own. Sotetsu announced a buyback for a quarter of the offering over the next six months.
- The shareholder structure and distribution within Max Real World Float tells you all you need to know.
Tsumura (4540 JP) Equity Offering – Easy To Swallow, and Not Expensive
- Tsumura & Co (4540 JP) shocked everyone a year ago when they announced an immediate large price hike across the board for its kampo medicines. The stock was +35% immediately.
- It did not fall back. Now the stock is up 60% from a year ago and earnings are too. It’s still <10x PER. Now we get a ¥10bn secondary offering.
- It’s 12 days of ADV but not super heavy, and there is a buyback on the back end.
Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance
- A group of shareholders are looking to raise US$135m from selling their respective stakes in Sotetsu Holdings (9003 JP) .
- While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
- In this note, we will talk about the placement and run the deal through our ECM framework.
PhonePe IPO: Walmart-Backed India Fintech Preps for Listing. A Quick Primer
- Walmart (WMT US) backed Phonepe is gearing up for an IPO in India, according to comments made by Walmart CEO McMillon during Investor call yesterday,
- Phonepe Pvt Ltd (1732974D IN) , 84% owned by Walmart (WMT US), is one of India’s leading fintech company with its flagship digital payment app.
- During its last funding round in January 2023, PhonePe raised USD350 million from General Atlantic at a valuation of USD12 billion.
Chifeng Jilong A/H Listing: Riding on the Gold Rush
- Chifeng Jilong Gold Mining (600988 CH), a company owning multiple gold mines across the world, aims to raise around US$500m in its H-share listing.
- It is principally engaged in the mining, processing and sales of gold.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
