IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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.

Equity Capital Markets

SBI Shinsei Bank / Equity Capital Markets

SBI Shinsei Bank, Ltd. provides banking services including deposits, loans, and foreign exchange transaction, as well as investment trust service and issuance of long-term bonds.

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<a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a> is a Japanese financial institution. At the IPO price, it will raise JPY322 billion (US$2.1 billion). The shares will be listed on 17 December.</li>
<li>I previously discussed the IPO in <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:211376" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: The Investment Case</a><a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:211514" rel="noopener"> </a>and <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-price-range-is-attractive" target="_blank" data-smartkarma-citation="insights:212880" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive</a>.</li>
<li>The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.</li>
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SBI Shinsei Bank (8303 JP) is a Japanese financial institution. At the IPO price, it will raise JPY322 billion (US$2.1 billion). The shares will be listed on 17 December.
I previously discussed the IPO in SBI Shinsei Bank (8303 JP) IPO: The Investment Case and SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive.
The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.


SBI Shinsei Bank (8303 JP) IPO: Trading Debut

Event-Driven

Medical Data Vision Co.,Ltd. was founded in 2003. The company's line of business includes developing integrated medical information systems, analysis of medical information, and business consulting for medical institutions.

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<a href="https://www.smartkarma.com/entities/medical-data-vision-co-ltd" target="_blank" data-smartkarma-citation="entities:8367:1" rel="noopener">Medical Data Vision (3902 JP)</a> has recommended a tender offer from Nippon Life at JPY1,693, a 212.4% premium to the last close.</li>
<li>The substantial takeover premium reflects the outcome of an auction and <a href="https://www.smartkarma.com/entities/sbi-holdings-inc" target="_blank" data-smartkarma-citation="entities:10928:1" rel="noopener">SBI Holdings (8473 JP)</a> willingness to share TOB tax benefits with minority shareholders. </li>
<li>The substantial takeover premium also ensures that this is a done deal. The tender closes on 3 February, with payment commencing from 9 February. </li>
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Medical Data Vision (3902 JP) has recommended a tender offer from Nippon Life at JPY1,693, a 212.4% premium to the last close.
The substantial takeover premium reflects the outcome of an auction and SBI Holdings (8473 JP) willingness to share TOB tax benefits with minority shareholders. 
The substantial takeover premium also ensures that this is a done deal. The tender closes on 3 February, with payment commencing from 9 February. 


Medical Data Vision (3902 JP): Nippon Life’s Tender Offer at JPY1,693 (3x Last Close)

Matsuya R&D Co.,Ltd. manufactures and distributes industry machinery equipment. The Company produces stitching systems for automobile safety devices, laser cutting machines, blood pressure arm bands, and other products. Matsuya R&D markets its products Japan.

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<a href="https://www.smartkarma.com/entities/matsuya-r-d-co-ltd" target="_blank" data-smartkarma-citation="entities:46158:1" rel="noopener">Matsuya R&amp;D (7317 JP)</a> has recommended a preconditional tender offer from <a href="https://www.smartkarma.com/entities/omron-corp" target="_blank" data-smartkarma-citation="entities:15904:1" rel="noopener">Omron Corp (6645 JP)</a> at JPY1,110, a 22.8% premium to the last close price.</li>
<li>While the offer represents an all-time high, it is light as it is 22% below the midpoint of the target IFA DCF valuation range. </li>
<li>This is a done deal, as the lower limit is marginally above the level of irrevocables. Timing is the key risk with the offer expected to start in late June.</li>
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Matsuya R&amp;D (7317 JP) has recommended a preconditional tender offer from Omron Corp (6645 JP) at JPY1,110, a 22.8% premium to the last close price.
While the offer represents an all-time high, it is light as it is 22% below the midpoint of the target IFA DCF valuation range. 
This is a done deal, as the lower limit is marginally above the level of irrevocables. Timing is the key risk with the offer expected to start in late June.


Matsuya R&D (7317 JP): Omron (6645 JP)’s Preconditional Tender Offer Is a Done Deal

MANDOM CORPORATION manufactures and markets a variety of cosmetic products for men and women.  The Company's products include hair care and skin care cosmetics.

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<a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a> has disclosed that it has received a non-binding letter of intent from a third-party candidate, with purchase prices exceeding the CVC JPY2,520 offer.</li>
<li>The <a href="https://www.nikkei.com/article/DGXZQOUB0996J0Z01C25A2000000/" target="_blank" rel="noopener">Nikkei</a> identifies the bidder as KKR and states that the offer is over JPY2,800, a 11.1% premium to the CVC offer. KKR want a Board-recommended offer.</li>
<li>CVC has extended the close of its offer to 5 January 2026, but will need to revise terms as its irrevocables (particularly Murakami and Hibiki) can switch to KKR.</li>
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Mandom Corp (4917 JP) has disclosed that it has received a non-binding letter of intent from a third-party candidate, with purchase prices exceeding the CVC JPY2,520 offer.
The Nikkei identifies the bidder as KKR and states that the offer is over JPY2,800, a 11.1% premium to the CVC offer. KKR want a Board-recommended offer.
CVC has extended the close of its offer to 5 January 2026, but will need to revise terms as its irrevocables (particularly Murakami and Hibiki) can switch to KKR.


Mandom (4917 JP): When You Thought It Was Done, KKR Emerges as a Competing Bidder

Hang Seng Bank Limited and its subsidiaries provide banking and related financial services.

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<a href="https://www.smartkarma.com/entities/hang-seng-bank-ltd" target="_blank" data-smartkarma-citation="entities:24:1" rel="noopener">Hang Seng Bank (11 HK)</a>’s IFA considers <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC Holdings (5 HK)</a>’s scheme privatisation offer of HK$155 per share to be fair and reasonable. </li>
<li>The key condition is scheme approval by at least 75% disinterested shareholders (&lt;10% disinterested shareholders' rejection). The scheme vote remains low risk.</li>
<li>The offer is attractive compared to peer multiples and privatisation precedents. This is done. At the current price and for a 4 February payment, the gross/annualised spread is 1.0%/7.1%.</li>
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Hang Seng Bank (11 HK)’s IFA considers HSBC Holdings (5 HK)’s scheme privatisation offer of HK$155 per share to be fair and reasonable. 
The key condition is scheme approval by at least 75% disinterested shareholders (&lt;10% disinterested shareholders' rejection). The scheme vote remains low risk.
The offer is attractive compared to peer multiples and privatisation precedents. This is done. At the current price and for a 4 February payment, the gross/annualised spread is 1.0%/7.1%.


Hang Seng Bank (11 HK): HSBC (5 HK)’s Scheme Vote on 8 January

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.

Arun George
IPOs and Catalysts/Events
• Global Equity Research Ltd

SBI Shinsei Bank (8303 JP) IPO: Trading Debut

The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.

Arun George

Medical Data Vision (3902 JP): Nippon Life’s Tender Offer at JPY1,693 (3x Last Close)

The substantial takeover premium reflects the outcome of an auction and SBI Holdings' willingness to share TOB tax benefits with minority...

Arun George

Matsuya R&D (7317 JP): Omron (6645 JP)’s Preconditional Tender Offer Is a Done Deal

This is a done deal, as the lower limit will be satisfied mainly by irrevocables. Timing is the key risk with the offer expected to start in late...

Arun George

Mandom (4917 JP): When You Thought It Was Done, KKR Emerges as a Competing Bidder

CVC has extended the close of its offer to 5 January 2026, but will need to revise terms as its irrevocables (particularly Murakami and Hibiki) can...

Arun George

Hang Seng Bank (11 HK): HSBC (5 HK)’s Scheme Vote on 8 January

The offer is attractive compared to peer multiples and privatisation precedents. This is done. At the current price and for a 4 February payment,...

Arun George