In today’s briefing:
- Boqi Env (2377 HK)’s Partial Offer Now Open. But First The EGM
- Dai-Nippon Printing (7912) – The First Equity Offering by Cross-Holders – Small And Lots More To Go
- Dai Nippon Placement – Share Buyback Should Aid Deal Performance
- Quiddity JPX-Nikkei 400 Rebal 2025: End-Nov 2024 Ranks
- Ecopro BM’s KOSPI Move: Trade LS Marine Solution & Green Cross for the Real Play
- BQE: Q3 Largely Surpasses Expectations; Increasing Target Price
- End of Mandatory Lock-Up Periods for 52 Companies in Korea in December 2024
Boqi Env (2377 HK)’s Partial Offer Now Open. But First The EGM
- On the 23rd October, flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
- The buyback lifts the stake of co-founder Zeng Zhijun and concert parties to 32.59% – up from 27.71% – before options. To avoid an MGO, this requires a whitewash waiver
- The Offer Doc is now out. The EGM – and the first close – is the 20th December.
Dai-Nippon Printing (7912) – The First Equity Offering by Cross-Holders – Small And Lots More To Go
- Today after the close Dai Nippon Printing (7912 JP) announced 16 corporate and financial entities would be selling cross-held shares in a ~US$240mm equity offering.
- The stock has gotten shellacked (relatively speaking given structurally low volatility) since three weeks ago. There’s a reason for that. But it makes it cheaper.
- This offering is only 10% of the cross-held total. There’s more to come. But there is more outbound cross-holding to sell too. There’s value here.
Dai Nippon Placement – Share Buyback Should Aid Deal Performance
- A group of shareholders are looking to raise US$214m from selling their respective stakes in Dai Nippon Printing (7912 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.
Quiddity JPX-Nikkei 400 Rebal 2025: End-Nov 2024 Ranks
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.
- The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
- Below is a look at the rankings of potential ADDs/DELs for the JPX-Nikkei 400 August 2025 rebalance based on trading data as of end-November 2024.
Ecopro BM’s KOSPI Move: Trade LS Marine Solution & Green Cross for the Real Play
- Ecopro BM’s still hot trading volume might minimize passive impact. The real action is who replaces it in KOSDAQ 150 and which KOSPI 200 stock gets the boot.
- LS Marine Solution joins KOSDAQ 150, while Green Cross Holdings gets the boot due to the lowest average daily market cap from May 1 to October 31.
- KRX fast-tracks approvals for financially strong companies in 20 trading days. Ecopro BM likely qualifies, meaning approval could come before Christmas—ideal timing for entry.
BQE: Q3 Largely Surpasses Expectations; Increasing Target Price
- BQE posted excellent Q3 financials that beat our expectations across the board as operations services continued its growth trajectory and the technical services and China JV segments reverted to historical levels.
- Proportional revenue came in at $10.2M (+28% YoY) vs. our estimate of $8.6M and Adj. EBITDA came in at $4.6M (+67% YoY) vs. our $2.7M.
- Management expects continued strong performance from the technical services segment through Q4/24 and Q1/25.
End of Mandatory Lock-Up Periods for 52 Companies in Korea in December 2024
- We discuss the end of the mandatory lock-up periods for 52 stocks in Korea in December 2024, among which two are in KOSPI and 50 are in KOSDAQ.
- Hese 52 stocks on average could be subject to further selling pressures in December and could underperform relative to the market.
- The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in December are Jeju Air, LS Materials, and Toolgen.
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