IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Weekly Deals Digest (19 Jul) - Digital Garage, Kakaku, Get Nice, Shengmu, OOh!Media, Perpetual

Merger Arb Mondays (20 Jul) - Kakaku, Shinko Shoji, Get Nice, Shengmu, Skyworth, Steadfast, Vault

Kakaku.com (2371 JP): Rethinking the Arb Trade

Kakaku.com (2371 JP): Bain/LY’s Binding Offer May Get the Job Done

Kakaku.com (2371 JP): Digital Garage Moves to Thwart Bain/LY

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digital-garage-inc" target="_blank" data-smartkarma-citation="entities:13747:1" rel="noopener">Digital Garage (4819 JP)</a> shares popped 12% on news that Old Peak had emerged as a substantial shareholder, potentially signalling an activist push for the Board to prioritise shareholder returns.</li>
<li>DG’s shares have languished since the announcement of the <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a> transaction on 12 May. DG is undoubtedly cheap and could be worth 2x more.</li>
<li>However, closing this valuation gap remains challenging, particularly if Resona continues to support the Board. Pasona is a cautionary tale that a material windfall does not result in a rerating. </li>
</ul>



Digital Garage (4819 JP) shares popped 12% on news that Old Peak had emerged as a substantial shareholder, potentially signalling an activist push for the Board to prioritise shareholder returns.
DG’s shares have languished since the announcement of the Kakaku.com Inc (2371 JP) transaction on 12 May. DG is undoubtedly cheap and could be worth 2x more.
However, closing this valuation gap remains challenging, particularly if Resona continues to support the Board. Pasona is a cautionary tale that a material windfall does not result in a rerating. 


Digital Garage (4819 JP): Cheap, but Not Cheerful