Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of IPO & Placements for Aequitas Research. At Aequitas we cover all IPOs and placements across Asia-Pac with a deal size of at least US$100m. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%. 
Prior to Aequitas. I was heading Content Strategy for Smartkarma, along with covering IPOs & Placement. In an earlier life I have covered ASEAN property and the banking space in India.

Head of Research, IPOs & Placements

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<p>H2O Retailing plans to sell 10.3m shares in Takashimaya (Taka) for USD100m. The deal gets a borderline score on our framework and hence, we would avoid the deal for the reasons detailed below:</p><ul><li>The deal has been well-flagged with both the company's announcing their intention to reduce cross-shareholdings to 5% from current 8.26% owned by Taka in H2O and 9.31% owned by H2O in Taka, through a mix of buy backs and divestment. The deal doesn't change any fundamentals for the stock and the sentiment from the corporate restructuring of cross-shareholding should have been worked into the stock price over the past few days.</li><li>Yesterday, Taka offered to buy back 5.5m share at JPY1,103/share and H2O will tender 5m shares in that process. <strong>While Taka buying shares at this level is a positive, however, participants in this deal will get to participate at a minimum price of JPY1,240/share which is a 12.4% premium to where Taka is buying the shares from H2O.</strong> Thus, the tight 1-2% discount doesn't seem adequate</li><li>The stock is at its 52-week high and at its highest levels over the past five years and is trading above its historic multiples</li><li>While recent results beat analyst estimates, however, most analysts remain neutral with average target price 4% below deal price</li><li>The stock has been performing well off late but has still under performed its peers in the recent past and over a five year period</li></ul>

H2O Retailing plans to sell 10.3m shares in Takashimaya (Taka) for USD100m. The deal gets a borderline score on our framework and hence, we would avoid the deal for the reasons detailed below:The deal has been well-flagged with both the company's announcing their intention to reduce cross-shareholdings to 5% from current 8.26% owned by Taka in H2O and 9.31% owned by H2O in Taka, through a mix of buy backs and divestment. The deal doesn't change any fundamentals for the stock and the sentiment from the corporate restructuring of cross-shareholding should have been worked into the stock price over the past few days.Yesterday, Taka offered to buy back 5.5m share at JPY1,103/share and H2O will tender 5m shares in that process. While Taka buying shares at this level is a positive, however, participants in this deal will get to participate at a minimum price of JPY1,240/share which is a 12.4% premium to where Taka is buying the shares from H2O. Thus, the tight 1-2% discount doesn't seem adequateThe stock is at its 52-week high and at its highest levels over the past five years and is trading above its historic multiplesWhile recent results beat analyst estimates, however, most analysts remain neutral with average target price 4% below deal priceThe stock has been performing well off late but has still under performed its peers in the recent past and over a five year period

高島屋（8233 JP） - 株式持ち合いの縮小の一環であるが、株価は5年ぶりの高値。避けるべき