In today’s briefing:
- [Japan Offering] Kawasaki Heavy (7012 JP) Looking at an Offering
- Luxshare Precision (2475 HK): Index Inclusion Timeline for US$3.6bn Offering; Tighter H/A Discount
- Aequitas: Kawasaki Heavy Possible Share Issuance – Cap Raise on Back of Jap Govt Ambitious Plans
- Aequitas: EACON Group IPO – Not The Cheapest Market Leader
- Kawasaki Heavy Industries (7012 JP) — ¥200B Capital Raise: Dilution Overpriced, Entry Undervalued
- Astral Ltd: Can the Demerger Unlock Value Across Pipes and Chemicals?
- Luxshare Precision (2475 HK) IPO: We See Some Potential Upside
- Bears Cover, Bulls Borrow: Short Interest Week of June 22
- Options Weekly: Bears Circle Banks, Bulls Chase Storage and Discretionary
- Primer: GC AI – 01 Jul 2026
[Japan Offering] Kawasaki Heavy (7012 JP) Looking at an Offering
- Today Reuters carried an article suggesting Kawasaki Heavy Industries (7012 JP) would soon announce a ¥200bn capital raise – combo equity and convertible bond offering – in an ABO.
- ¥200bn would be a 23% increase in equity but about 6-7% dilution in realtime (equity+CB delta). ¥100bn of each would be 3x ADV, 4.8% of Shs Out, 10.7% of MRWF.
- The shares fell 8% today, putting them 13% off the recent high as a ratio against MitHeavy+IHI. The shares aren’t cheap, but this looks to be “easy.”
Luxshare Precision (2475 HK): Index Inclusion Timeline for US$3.6bn Offering; Tighter H/A Discount
- Luxshare Precision Industry (002475 CH) could raise up to HK$27.9bn (US$3.6bn) in its H-share offering if the Overallotment Option is exercised.
- The cornerstone investor allocation will be around 42% of the maximum offering size and those shares will be locked up for 6 months. Fast entry index inclusion probability is small.
- The H-shares are priced at a 17.2% discount to the A-shares last close and that is tighter than other large issues. Stock Connect from the open on 6 August.
Aequitas: Kawasaki Heavy Possible Share Issuance – Cap Raise on Back of Jap Govt Ambitious Plans
- As per media reports, Kawasaki Heavy Industries (7012 JP) could raise up to US$1.2bn from a primary offering of shares and converts. The timing and size remains uncertain.
- This comes on the heels of the Japanese government proposing a US$2.3T investment into key growth industries.
- In this note, we will talk about the possible deal dynamics.
Aequitas: EACON Group IPO – Not The Cheapest Market Leader
- EACON Group Co., Ltd (1868613D CH) is looking to raise around US$293m in its upcoming Hong Kong IPO.
- EACON designs, develops, and integrates the core intelligent components, such as autonomous driving software, domain controllers, and drive-by-wire platforms.
- In this note, we talk about the company’s past performance, peer comparison and valuations.
Kawasaki Heavy Industries (7012 JP) — ¥200B Capital Raise: Dilution Overpriced, Entry Undervalued
- KHI raises ¥200 billion via new shares and convertible bonds; stock drops 7.3% — dilution impact on FY2027F EPS is approximately 4–5%, not the 7% the market just priced.
- Capital deployed into aircraft engines, gas turbines, semiconductor robots, and hydrogen — all direct beneficiaries of Japan’s ¥9tn annual defense budget and PM Takaichi’s ¥370tn strategic spending plan through FY2040.
- Placement targets overseas institutional investors; block pricing and secondary market dislocation offer a rare same-day entry into a consensus BUY at a 40%-plus discount to the average analyst TP ¥3,810.
Astral Ltd: Can the Demerger Unlock Value Across Pipes and Chemicals?
- Astral’s board approved a composite scheme on June 25, 2026, to demerge chemicals into Astral Chemie and merge Al-Aziz Plastics into the parent.
- FY26 consolidated revenue stood at INR 6,569 crore, with plumbing contributing around 71% and chemicals around 29%. Separate listings can improve business-level valuation clarity.
- The timing looks strategic. Chemicals reported INR 1,861 crore revenue and INR 192 crore EBITDA, while CPVC integration and DSS specialty chemicals remain key future triggers.
Luxshare Precision (2475 HK) IPO: We See Some Potential Upside
- We consider Luxshare Precision Industry (2475 HK)‘s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests.
- Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers.
- The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.
Bears Cover, Bulls Borrow: Short Interest Week of June 22
- Covering dominated the week ending June 27.
- Several names saw short interest fall 50-70%, while a handful of fresh short positions emerged in energy, metals, and financials.
- Borrow costs told a split story – tightening hard in some names, collapsing in others.
Options Weekly: Bears Circle Banks, Bulls Chase Storage and Discretionary
- Options markets flashed a split signal this week.
- European financials drew the most persistent put-buying of the period, while select US names saw call buyers overwhelm hedgers.
- Earnings-linked hedging dominated mid-week flows, with several 52-week PCR records broken in both directions.
Primer: GC AI – 01 Jul 2026
- Sacra estimates GC AI hit $20M in annual recurring revenue (ARR) as of July 2026, up from $13M at the end of 2025.
- The company expanded from 1,000+ legal teams in November 2025 to 1,800+ by late June 2026, including public companies, unicorns, and startup customers such as Vercel, Liquid Death, Snyk, Zscaler, and Skims.
- GC AI was valued at $555M post-money in November 2025, when it closed a $60M Series B led by Scale Venture Partners and Northzone.
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