This weekly newsletter pulls together summaries of the top ten most-read Insights across Equity Capital Markets on Smartkarma.
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1. SBI Shinsei Bank (8303 JP) IPO: The Investment Case
- SBI Shinsei Bank (8303 JP), a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%.
- In December 2021, Shinsei Bank was privatised by SBI Holdings (8473 JP) through a contentious tender offer at JPY2,800 per share.
- The investment case rests on growth in accounts/deposits, robust loan book growth, accelerating revenue growth, rising margins and improving asset quality.
2. [Japan Offering] DAIHEN Corp (6622 JP) Sees Crossholders Selling 25% of Max Real World Float
- Yesterday saw the announcement of a secondary offering structured like a delayed pricing ABO.
- 1.5mm shares which is 7.5% of shares out, 25% of Max Real World Float, and 9 days of ADV. There’s more cross-holdings to come out later at some point.
- Though it is not particularly expensive, Momentum is not this stock’s friend right now.
3. Toyoda Gosei (7282 JP): A US$0.8 Billion Secondary Offering
- Toyoda Gosei (7282 JP) has announced a secondary offering of up to 29.7 million shares (34.2 million including overallotment), worth around US$0.7 billion (US$0.8 billion including overallotment).
- Toyoda Gosei’s primary goal with the secondary offering is to reduce Toyota Motor (7203 JP)‘s shareholding to around 20% of outstanding shares.
- The offering as a percentage of outstanding shares and ADV is large compared to recent large placements. The likely pricing date is 1 December.
4. SBI Shinsei Bank Pre-IPO – The Positives – Has Been Growing Well Since SBI Group Took Control
- SBI Shinsei Bank (8303 JP), a Japanese financial institution, aims to raise around US$2bn in its Japan listing.
- SBI Shinsei Bank (SBISB) is a Japanese financial institution providing a range of financial products and services to both individual and institutional customers.
- In this note, we talk about the positive aspects of the deal.
5. China Hongqiao Placement: Good Valuation but Likely Opportunistic, on the Back of Chuangxin Listing
- China Hongqiao (1378 HK) is looking to raise around US$1.2bn from a primary placement.
- This represents 9.1 days of the stock’s three month ADV, and 2.9% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
6. SBI Shinsei Bank (8303 JP) IPO: Valuation Insights
- SBI Shinsei Bank (8303 JP), a Japanese financial institution, is looking to relist by raising about US$2 billion. The primary/secondary split is 40%/60%.
- I discussed the investment thesis in SBI Shinsei Bank (8303 JP) IPO: The Investment Case.
- In this note, I discuss valuation. My analysis suggests that SBI Shinsei is fairly valued at the IPO price of JPY1,440 per share.
7. Toyoda Gosei Placement – Somewhat Expected but Relatively Large with Delayed Buyback
- Toyota Motor (7203 JP) and Sumitomo Mitsui Financial Group (8316 JP) plan to raise around US$700m via selling down some of their stake in Toyoda Gosei (7282 JP).
- The deal is a large one to digest at over 20% of the company and 90 days of ADV.
- In this note, we will talk about the placement and run the deal through our ECM framework.
8. UltraGreen.ai Pre-IPO: Strong Financials Despite Misleading Branding
- UltraGreen.AI (2594794D SP) is looking to raise US$400m in its upcoming Singapore IPO.
- Ultragreen is a global leader in Fluorescence Guided Surgery (FGS), a surgical approach that helps doctors see things inside the body that are normally invisible under regular white light.
- In this note, we look at the company’s past performance.
9. Chuangxin Pre-IPO: Increasing Exposure to Volatile Alumina; Offered at Premium to Peers
- Chuangxin Industries (CXI HK) is looking to raise up to US$700m in its upcoming Hong Kong IPO.
- It is focused on alumina refining and aluminum smelting within the upstream of the aluminum industry chain.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
10. SBI Shinsei Bank Pre-IPO – The Negatives – PAT Growth Aided by One-Offs, Margins Under Pressure
- SBI Shinsei Bank (8303 JP), a Japanese financial institution, aims to raise around US$2bn in its Japan listing.
- SBI Shinsei Bank (SBISB) is a Japanese financial institution providing a range of financial products and services to both individual and institutional customers.
- In this note we talk about the not-so-positive aspects of the deal.
