Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

McDonald's Holdings Company (Japan), Ltd. operates a hamburger fast food restaurant chain throughout Japan.  The Company operates its own stores and franchise stores.

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>In October 2024, <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a>, <a href="https://www.smartkarma.com/entities/pksha-technology-inc" target="_blank" data-smartkarma-citation="entities:26181:1" rel="noopener">PKSHA Technology (3993 JP)</a>, and <a href="https://www.smartkarma.com/entities/genova-inc" target="_blank" data-smartkarma-citation="entities:43939:1" rel="noopener">GENOVA (9341 JP)</a> were included in the TOPIX index.</li>
<li>Next, <a href="https://www.smartkarma.com/entities/wa-inc" target="_blank" data-smartkarma-citation="entities:29189:1" rel="noopener">WA Inc (7683 JP)</a> will be included in TOPIX at the end of December 2024.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
In October 2024, CELSYS (3663 JP), PKSHA Technology (3993 JP), and GENOVA (9341 JP) were included in the TOPIX index.
Next, WA Inc (7683 JP) will be included in TOPIX at the end of December 2024.


TOPIX Inclusions: Who Is Ready (Nov 2024)

CELSYS, Inc. provides application software and digital services. The Company operates creators support business, digital books support business and planning of middleware and contents services. CELSYS also offers painting and drawing app services.

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>Our long-term pre-event candidate <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a> has moved to TSE Prime. There will be a TOPIX Inclusion event on 30-Oct-24. The stock has outperformed TOPIX by 43% since <a href="https://www.smartkarma.com/insights/topix-inclusions-who-is-ready-july-2024" target="_blank" rel="noopener">July</a>.</li>
<li>
<a href="https://www.smartkarma.com/entities/pksha-technology-inc" target="_blank" data-smartkarma-citation="entities:26181:1" rel="noopener">PKSHA Technology (3993 JP)</a> and <a href="https://www.smartkarma.com/entities/genova-inc" target="_blank" data-smartkarma-citation="entities:43939:1" rel="noopener">GENOVA (9341 JP)</a> also moved to the TSE Prime market in September and will be having TOPIX Inclusion events at the end of October 2024.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Our long-term pre-event candidate CELSYS (3663 JP) has moved to TSE Prime. There will be a TOPIX Inclusion event on 30-Oct-24. The stock has outperformed TOPIX by 43% since July.

PKSHA Technology (3993 JP) and GENOVA (9341 JP) also moved to the TSE Prime market in September and will be having TOPIX Inclusion events at the end of October 2024.


TOPIX Inclusions: Who Is Ready (Oct 2024)

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Rigaku Holdings Corporation manufactures radiation equipment. The Company produces and distributes X-ray diffraction devices, thermal analysis devices, and other scientific instruments. Rigaku Holdings markets its products in Japan.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rigaku-holdings-corporation" target="_blank" data-smartkarma-citation="entities:43950:1" rel="noopener">Rigaku Holdings (268A JP)</a> listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 25 October.</li>
<li>At the reported indicative IPO price of JPY 1230/share, <a href="https://www.smartkarma.com/entities/rigaku-holdings-corporation" target="_blank" data-smartkarma-citation="entities:43950:1" rel="noopener">Rigaku Holdings (268A JP)</a> will be valued at JPY 277.1bn (US$1.87bn).</li>
<li>The stock should be added to the <a href="https://www.smartkarma.com/entities/tokyo-stock-exchange-tokyo-price-index-topix" target="_blank" data-smartkarma-citation="entities:22910:1" rel="noopener">TOPIX INDEX</a> on 28 November while inclusion in global indices will take place in February and June next year.</li>
</ul>



Rigaku Holdings (268A JP) listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 25 October.
At the reported indicative IPO price of JPY 1230/share, Rigaku Holdings (268A JP) will be valued at JPY 277.1bn (US$1.87bn).
The stock should be added to the TOPIX INDEX on 28 November while inclusion in global indices will take place in February and June next year.


Rigaku Holdings (268A JP) IPO: TOPIX Inclusion in November; Global Indices in 2025

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Equity Capital Markets

WA Inc. designs, manufactures, and sells women footware. The Company provides pumps, sandals, boots, and other shoes. WA also produces bags, shoe care products, accessories, rain items, and other products. WA markets its products in Asia through offline stores and electronic commerce website.

<ul>
<li>Yesterday <a href="https://www.smartkarma.com/entities/wa-inc" target="_blank" data-smartkarma-citation="entities:29189:1" rel="noopener">WA Inc (7683 JP)</a> announced that on the five year anniversary of its listing in 2019, the stock would move to TSE Prime on 1 November 2024</li>
<li>They also announced a secondary offering of 2.86mm shares including greenshoe. That's 15% of shares out but the offering will double total float. This is almost a re-IPO.</li>
<li>This will lead to a TOPIX inclusion on 27 December which will be smaller than the offering. This will be all retail. </li>
</ul>


Yesterday WA Inc (7683 JP) announced that on the five year anniversary of its listing in 2019, the stock would move to TSE Prime on 1 November 2024
They also announced a secondary offering of 2.86mm shares including greenshoe. That's 15% of shares out but the offering will double total float. This is almost a re-IPO.
This will lead to a TOPIX inclusion on 27 December which will be smaller than the offering. This will be all retail. 


Wa Inc (7683 JP) - Equity Offering, and TOPIX Inclusion But Very Lopsided Register

PKSHA Technology Inc. provides software development services. The Company develops and manages image recognition, universal dialogue, and customer behavior forecast software. PKSHA Technology serves clients in Japan.

<ul>
<li>PKSHA is an AI company. It was before this year, and got a boost this past spring. The stock price rose 60% in two weeks in February and March 2024.</li>
<li>Then it fell more than 50%. Back to late 2023 levels. High growth, growing into its valuations. Now moving to TSE Prime this week, TOPIX next month. </li>
<li>Impact in days of ADV is lower than impact in Real World Float metrics. There are lots of day-traders. This probably has legs.</li>
</ul>


PKSHA is an AI company. It was before this year, and got a boost this past spring. The stock price rose 60% in two weeks in February and March 2024.
Then it fell more than 50%. Back to late 2023 levels. High growth, growing into its valuations. Now moving to TSE Prime this week, TOPIX next month. 
Impact in days of ADV is lower than impact in Real World Float metrics. There are lots of day-traders. This probably has legs.


PKSHA Tech (3993 JP) - TOPIX Inclusion in October 2024

Topix Inclusion
Topix inclusion trades

TOPIX Inclusions: Who Is Ready (Nov 2024)

There are currently 76 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 70 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

TOPIX Inclusions: Who Is Ready (Oct 2024)

The LONGs (Basket A) have outperformed the SHORTs (Basket B) modestly by 0.62% from 7th October to 30th October. On average, the LONGs are down...

Janaghan Jeyakumar, CFA

Rigaku Holdings (268A JP) IPO: TOPIX Inclusion in November; Global Indices in 2025

Rigaku priced its IPO at the top end of the range and there could be further gains today. TOPIX inclusion comes next month and inclusion in other...

Brian Freitas

Wa Inc (7683 JP) - Equity Offering, and TOPIX Inclusion But Very Lopsided Register

Smallcap shoe co WA Inc (7683) moving to Prime after an equity offering. The TOPIX inclusion will be a third of the offering but the rest is still...

Travis Lundy

PKSHA Tech (3993 JP) - TOPIX Inclusion in October 2024

PKSHA Tech moves to TSE Prime Friday, and TOPIX in October. That means 4+ days of ADV to buy, and abt 2 days in April 2025. It's not cheap, but it...

Travis Lundy