Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with 10+ years experience in fundamental and event-driven research.

On Smartkarma, I mainly publish insights on index flow events. This includes predicting regular and intra-review index changes and formulating market-neutral trading strategies based on flow catalysts. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Pan-Asia Index Flows & Special Situations

JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)

J-REIT Offering Primer: Get Ready for Offering Season 2021

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<div><p>On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.</p></div><div>
<p>While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <a href="https://www.smartkarma.com/insights/j-reit-offering-primer-get-ready-for-offering-season-2021" target="_blank" data-smartkarma-citation="insights:46416" rel="noopener">J-REIT Offering Primer: Get Ready for Offering Season 2021</a>. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - <a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> - with greater emphasis on the potential for strong post-offering secondary market performance. </p>
<p><a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> today announced a follow-on equity offering after market-close to fund part of their recent property acquisitions. The primary offer quantity is 82,800 units. In addition, there will also be an over-allotment quantity of 4,200 units. The total size of this offering could be roughly ¥14.6bn (~US$130mn). This is the second such follow-on offering this year, with a previous offering announced in March covered in <em><a href="https://www.smartkarma.com/insights/jreit-offering-hulic-reit-inc-3295-jp-take-it-vs-comps" target="_blank" data-smartkarma-citation="insights:49757" rel="noopener">JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)</a></em> at the time.</p>
<div><p><em>More below the fold. </em></p></div>
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On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.
While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - Hulic Reit Inc (3295 JP) - with greater emphasis on the potential for strong post-offering secondary market performance. 
Hulic Reit Inc (3295 JP) today announced a follow-on equity offering after market-close to fund part of their recent property acquisitions. The primary offer quantity is 82,800 units. In addition, there will also be an over-allotment quantity of 4,200 units. The total size of this offering could be roughly ¥14.6bn (~US$130mn). This is the second such follow-on offering this year, with a previous offering announced in March covered in JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps) at the time.
More below the fold. 


Hulic Reit (3295 JP): Offering Could Trigger Outperformance Vs Peers