Daily Brief TMT/Internet: Kokusai Electric , Tekscend Photomask, Taiwan Semiconductor (TSMC) – ADR, Fair Isaac Corp, Dassault Systemes , Nebius Group, Meta, JST Group, Onward Technologies and more

• Three weeks ago I wrote that KKR’s lockup would expire about now in [Japan ECM] Kokusai Elec (6525) – KKR’s Lock Up Expiry in 3 Weeks – $700mm Clean-Up Coming? 
• Today post-close, Applied Materials (AMAT US) announced a 10.7mm share (4.5%) Accelerated Block Offering to be priced tomorrow morning, at an indicated 4.5-6.5% discount. This would put them at 10+%. 
• This should be very well taken up. There is index demand on the follow. The question is more about the unwind of KKR’s last bit. Perhaps to come soon?

• Applied Materials (AMAT US) is looking to raise approximately US$330m through an accelerated secondary offering for around 4.5% of Kokusai Electric (6525 JP) (KE) stock.
• KE had seen two selldown earlier, from KKR, with mixed results. KKR just came out of its last lockup.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Tekscend Photomask (429A JP) has set the IPO pricing at JPY2,900–3,000 per share, and will offer 39.6m shares raising around ¥115-118bn (US$800m) at a valuation of ¥240-250bn.
• The company is a leading global photomask manufacturer with strength in advanced EUV masks, and generates most of its revenue from overseas markets.
• We have compared the company against its closest pure-play peer Photronics Inc (PLAB US)  and believe the IPO is valued attractively given its expansion plans and technological edge.

• As Chips Move to 3nm and 2nm Designs, Tech Companies Could See a Sharp Increase in Their Chip Manufacturing Cost
• Intel (INTC.US): AMD to Submit Foundry Orders to Intel? We Think It’s Highly Unlikely. 
• HBM Stocks Will Keep Running (Micron, SK Hynix), It’s Just the Beginning 

• Shares of Fair Isaac Corporation surged in recent sessions as investors digested a transformative pivot in the company’s pricing strategy and market positioning.
• The catalyst?
• FICO is testing a new pricing model that directly undermines the influence of the three major credit bureaus — Experian, Equifax, and TransUnion — by sidelining them in score delivery and distribution.

• Dassault Systèmes had solid second-quarter and first-half results for 2025, witnessing a consistent performance across its business segments.
• Total and software revenue grew by 6%, fueled by a 10% increase in subscription revenue and 20% growth in its 3DEXPERIENCE platform.
• Despite the growth, the company’s EPS increased only by 4%, reaching EUR 0.30, partially due to foreign exchange headwinds affecting profitability.

• Nebius Group is rapidly emerging as a key player in the high-growth AI infrastructure market, specializing in GPU-as-a-Service. The company is strategically positioned to capitalize on the surging demand for AI compute capacity.
• A landmark multi-year, multi-billion dollar contract with Microsoft validates Nebius’ capabilities and significantly de-risks its near-term revenue trajectory. Management is guiding for a revenue run-rate of $750 million to $1 billion by the end of 2025.
• Significant execution risks remain, including managing immense capital expenditures, navigating power and supply chain constraints, and fending off intense competition from established hyperscalers and other specialized cloud providers. Financial performance is volatile, with a history of negative margins and cash flow.

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• Meta Platforms is staring down a new wave of disruption just as it ramps up its ambitions in AI and immersive content.
• On October 3rd, OpenAI’s newly launched AI-video app, Sora, surged to the No. 1 spot on Apple’s App Store, less than a week after release.
• While Meta was showcasing the scalability of its AI infrastructure, with over 3.4 billion daily app users and expanding monetization tools, Sora quietly detonated a cultural moment.

• JST Group (1703609D CH) is China’s largest e-commerce SaaS ERP provider. It is seeking to raise US$250 million to US$300 million.     
• JST (Jushuitan) is China’s largest e-commerce SaaS ERP provider in terms of relevant revenue in 2024, with a market share of 24.4%, according to CIC.
• The investment case is bullish due to robust book-to-bill ratios, strong growth, high contract liabilities, underlying profitability and cash generation.  

• Onward Technologies is strategically pivoting from traditional IT services to high-growth, higher-margin Digital and Engineering Research & Development (ER&D) services, targeting key industrial verticals.
• The company is well-positioned to capitalize on the significant growth projected for the Indian ER&D services market, which is driven by global trends in digital transformation, automation, and connected technologies.
• While demonstrating strong long-term growth in revenue and profitability, the company has experienced recent margin pressure and a decline in net income, highlighting execution risks and competitive intensity.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.