IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/denso-corp" target="_blank" data-smartkarma-citation="entities:18703:1" rel="noopener">Denso Corp (6902 JP)</a> announced a secondary offering of up to 294.8 billion shares (including overallotment) and a buyback (maximum shares of 125 million or maximum value of JPY200 billion).</li>
<li>Denso also announced a cross-holding reduction policy. In an unspecified timeframe, it will sell part of its holdings in <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a> and <a href="https://www.smartkarma.com/entities/aisin-corp" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin (7259 JP)</a>.</li>
<li>Looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 13 and 18 December (likely 13 December).</li>
</ul>



Denso Corp (6902 JP) announced a secondary offering of up to 294.8 billion shares (including overallotment) and a buyback (maximum shares of 125 million or maximum value of JPY200 billion).
Denso also announced a cross-holding reduction policy. In an unspecified timeframe, it will sell part of its holdings in Toyota Industries (6201 JP) and Aisin (7259 JP).
Looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 13 and 18 December (likely 13 December).


Denso (6902 JP): US$4.0 Billion Secondary Offering and US$1.4 Billion Buyback

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Toyota Group of companies are proposing to reduce their holdings in <a href="https://www.smartkarma.com/entities/denso-corp" target="_blank" data-smartkarma-citation="entities:18703:1" rel="noopener">Denso (6902 JP)</a> by selling about 10% by year-end, in a share sale worth ~$4.7bn.</li>
<li>Preceding my comments on <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a> / <a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota Motor (7203 JP)</a> - and <a href="https://www.smartkarma.com/entities/las-vegas-sands-corp" target="_blank" data-smartkarma-citation="entities:807:1" rel="noopener">Las Vegas Sands (LVS US)</a> - are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


The Toyota Group of companies are proposing to reduce their holdings in Denso (6902 JP) by selling about 10% by year-end, in a share sale worth ~$4.7bn.
Preceding my comments on Toyota Industries (6201 JP) / Toyota Motor (7203 JP) - and Las Vegas Sands (LVS US) - are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Toyota Group To Sell 10% of Denso; Adelson Selling LVS

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS: SPX Rallies supported by Bullish ARM (+25%) trading;  Markets ignore implications Producer prices; Retail sales strong;   UAW Strike Looms - GM Sweetens offer; China cuts RRR. </li>
<li>JAPAN: NKY Futs 0.1% vs Cash; USDJPY 147.5; Japan Corp profits not trickling down; No boost for Kishida post reshuffle; More JP firms lifting shareholder returns; Bullish Aisin MTP </li>
<li>JAPAN X: Sparx Group's Billion-Dollar Bet on Japan's Future. CEO Abe goes all in with a view of catching the start of the wave of resurgence of Japanese equities.</li>
</ul>


OVERSEAS: SPX Rallies supported by Bullish ARM (+25%) trading;  Markets ignore implications Producer prices; Retail sales strong;   UAW Strike Looms - GM Sweetens offer; China cuts RRR. 
JAPAN: NKY Futs 0.1% vs Cash; USDJPY 147.5; Japan Corp profits not trickling down; No boost for Kishida post reshuffle; More JP firms lifting shareholder returns; Bullish Aisin MTP 
JAPAN X: Sparx Group's Billion-Dollar Bet on Japan's Future. CEO Abe goes all in with a view of catching the start of the wave of resurgence of Japanese equities.


Ohayo Japan: SPX Rallies on Bullish ARM Debut; JAPAN X: Sparx Founder Retirement Trade - $2bn Fund

Travis Lundy

Equity Bottom-Up

<ul>
<li>Toyota Group autoparts maker <a href="https://www.smartkarma.com/entities/aisin-seiki-co-ltd" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin Seiki (7259 JP)</a> today <a href="https://www.aisin.com/en/news/2023/005984.html" target="_blank" rel="noopener">announced</a> a new <a href="https://www.aisin.com/en/investors/settlement/uploads/Mid%20Long-term%20IR_presentation_en.pdf" target="_blank" rel="noopener">Medium-Term Plan</a>. They plan to shift their business away from "entrusted" business, towards BEV, Brakes, and "Safe/Comfort Entry"</li>
<li>They aim to grow revenues 25% from 2021 to 2025 and an additional 10-20% by 2030. </li>
<li>They also aim to improve investment and capital efficiency, and that's where we can look at the interesting possibilities.</li>
</ul>


Toyota Group autoparts maker Aisin Seiki (7259 JP) today announced a new Medium-Term Plan. They plan to shift their business away from "entrusted" business, towards BEV, Brakes, and "Safe/Comfort Entry"
They aim to grow revenues 25% from 2021 to 2025 and an additional 10-20% by 2030. 
They also aim to improve investment and capital efficiency, and that's where we can look at the interesting possibilities.


The New Aisin (7259) MTP - Selling Crossholdings, Eventually

<ul>
<li>Aisin’s stock price rose by +8% today after the company held its MTP strategy briefing</li>
<li>Aisin to restructure its business portfolio and focus on new growth areas for EV’s - eAxle, battery frames, and braking technologies</li>
<li>Aisin aims to generate ¥400b from balance sheet reform - asset sales, inventory management and sale of cross-shareholding.</li>
</ul>


Aisin’s stock price rose by +8% today after the company held its MTP strategy briefing
Aisin to restructure its business portfolio and focus on new growth areas for EV’s - eAxle, battery frames, and braking technologies
Aisin aims to generate ¥400b from balance sheet reform - asset sales, inventory management and sale of cross-shareholding.


Japan

Aisin Corporation manufactures and distributes motor vehicle parts. The Company produces drive train, transmissions, clutches, disc brakes, anti-skid brake system, suspensions, oil pumps, power windows, power door locks, and more. Aisin operates sales and production subsidiaries worldwide.

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Aisin (7259 JP)

Denso (6902 JP): US$4.0 Billion Secondary Offering and US$1.4 Billion Buyback

Looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 13 and 18...

Arun George

StubWorld: Toyota Group To Sell 10% of Denso; Adelson Selling LVS

This has been a great stub trade since late March. Look to unwind here. Both TICO and TMC intend to pocket a chunk of change in Denso. The net...

David Blennerhassett

Ohayo Japan: SPX Rallies on Bullish ARM Debut; JAPAN X: Sparx Founder Retirement Trade - $2bn Fund

US equities rally supported buy bullish ARM debut; NKY Futs 0.1% vs Cash; USDJPY 147.5; Japan Corp profits not trickling down; More JP firms...

Mark Chadwick

The New Aisin (7259) MTP - Selling Crossholdings, Eventually

Aisin presented its revised MTP today, including ¥400bn of b/s restructuring, including cross-holding sales, over the next 2.5yrs. They expect OPMs...

Travis Lundy

Aisin (7259) | MTP Gains Traction

Aisin's stock soars as the company plans to restructure and prioritize EV-related growth areas, aiming to generate ¥400b through balance sheet...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Denso (6902 JP): US$4.0 Billion Secondary Offering and US$1.4 Billion Buyback

Looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 13 and 18...

Arun George

StubWorld: Toyota Group To Sell 10% of Denso; Adelson Selling LVS

This has been a great stub trade since late March. Look to unwind here. Both TICO and TMC intend to pocket a chunk of change in Denso. The net...

David Blennerhassett

Ohayo Japan: SPX Rallies on Bullish ARM Debut; JAPAN X: Sparx Founder Retirement Trade - $2bn Fund

US equities rally supported buy bullish ARM debut; NKY Futs 0.1% vs Cash; USDJPY 147.5; Japan Corp profits not trickling down; More JP firms...

Mark Chadwick

The New Aisin (7259) MTP - Selling Crossholdings, Eventually

Aisin presented its revised MTP today, including ¥400bn of b/s restructuring, including cross-holding sales, over the next 2.5yrs. They expect OPMs...

Travis Lundy

Aisin (7259) | MTP Gains Traction

​Aisin's stock soars as the company plans to restructure and prioritize EV-related growth areas, aiming to generate ¥400b through balance sheet...

Mark Chadwick

Aisin's stock soars as the company plans to restructure and prioritize EV-related growth areas, aiming to generate ¥400b through balance sheet...