In today’s briefing:
- Nomura Research Institute (4307) Large Secondary Offering – Demand Profile and Index Implications
- Kakaku.com Inc.: A Deep-Dive View
- 2023 High Conviction: J-Power Stands Out As Japan Goes Carbon Neutral
- Nomura Research Placement – Somewhat Well Flagged, past Deals Have Done Well but Momentum Is Weak
Nomura Research Institute (4307) Large Secondary Offering – Demand Profile and Index Implications
- On Friday, Nomura Research Institute Ltd (4307 JP) announced that Jafco Co Ltd (8595 JP) and Nomura Holdings (8604 JP) would each sell NRI shares in a Secondary Offering.
- JAFCO is selling to fund a giant buyback. Nomura is selling to round out the offering size. The total is 37mm shares plus greenshoe of 5.5mm shares.
- At Friday’s price that is ~¥140bn (including greenshoe), 7% of shares out, 10% of float, and about 25% of Real World Float. There are index implications.
Kakaku.com Inc.: A Deep-Dive View
- Kakaku.com Inc. can be a rare species among listed companies in Japan;
- We had multiple email exchanges and meetings with the management team for a deep-dive view covering corporate cultural, management style, capital allocation, business model, and competitive strength.
- We would wait for a 20%-30% pullback in the share price before looking to add to our position but would certainly remain reluctant to sell any share that we own.
2023 High Conviction: J-Power Stands Out As Japan Goes Carbon Neutral
- Operating under the brand name J-Power, Electric Power Development C (9513 JP) is leading Japan’s efforts to make carbon dioxide-free electricity by 2050.
- The company’s investments in gasification and carbon dioxide separation technology and carbon dioxide-free hydrogen generation from coal are close to commercialisation.
- With the technology to serve other power producers to develop their own environmentally-friendly power projects, J-Power could turn into a global-leader in the power generation space in the next decade.
Nomura Research Placement – Somewhat Well Flagged, past Deals Have Done Well but Momentum Is Weak
- Nomura Holdings (8604 JP) and Jafco Co Ltd (8595 JP) are looking to raise around US$850m via selling 5.7% of Nomura Research Institute Ltd (4307 JP).
- This is not the first sale by Nomura and marks a clean up for Jafco. Hence it might not come as a complete surprise.
- In this note, we will run the deal through our ECM framework and talk about the recent updates.
💡 Before it’s here, it’s on Smartkarma
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