Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. 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%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Simplex Holdings / Equity Capital Markets

<p>Simplex Holding’s shareholders aim to raise around US$300m via selling some of their stake in the company in its Japan IPO. Simplex has consistently been ranked among the top companies in IDC Fintech rankings over the past nine years.</p><p>Simplex provides consulting, system development, maintenance and operations to banks, asset managers and insurance companies in Asia</p><p>Simplex was established in Sep 97. It was listed on JASDAQ in Feb 2002 and progressed to the First Section in Sep 2005. The company undertook an MBO, in Apr 2013 and was delisted in Oct 2013.</p><p>Since delisting, Simplex has expanded its product offering further to cover life insurance and non-life insurance companies as well, along with crypto exchanges. It has been reporting steady revenue growth over the past few years, although its margins have been volatile. </p><p>Its performance prior to delisting wasn’t great, as it missed its medium term targets, and it now appears to be at peak margins.</p>

Simplex Holding’s shareholders aim to raise around US$300m via selling some of their stake in the company in its Japan IPO. Simplex has consistently been ranked among the top companies in IDC Fintech rankings over the past nine years.Simplex provides consulting, system development, maintenance and operations to banks, asset managers and insurance companies in AsiaSimplex was established in Sep 97. It was listed on JASDAQ in Feb 2002 and progressed to the First Section in Sep 2005. The company undertook an MBO, in Apr 2013 and was delisted in Oct 2013.Since delisting, Simplex has expanded its product offering further to cover life insurance and non-life insurance companies as well, along with crypto exchanges. It has been reporting steady revenue growth over the past few years, although its margins have been volatile. Its performance prior to delisting wasn’t great, as it missed its medium term targets, and it now appears to be at peak margins.

Simplex Holdings Pre-IPO - Steady Topline Growth but Appears to Be at Peak Margins

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

<p>After market-close yesterday, Japan-based business system package software maker <a href="https://www.smartkarma.com/entities/obic-business-consultants" target="_blank" data-smartkarma-citation="entities:17383:1" rel="noopener">Obic Business Consultants (4733 JP)</a> ("OBIC BC") announced a <a href="https://www.obc.co.jp/hubfs/obc/ir_english/Notification%20Regarding%20Secondary%20Offering%20of%20Shares.pdf" target="_blank" rel="noopener">Secondary Offering of Shares</a> for a total quantity of 9,714,000 shares which, at the current trading price, translates to a total offering size of ~¥52bn (US$470mn). </p><p>In this announcement, the company mentioned that they had received a notification from the Tokyo Stock Exchange on 9th July 2021 stating that their "<em>Tradable Shares</em>" ratio did not satisfy the criteria for maintaining a listing on the “Prime Market". </p><p>The Company is currently listed on the First Section of the Tokyo Stock Exchange and they intend to transition to the “Prime Market”. In order to do so, the company must be able to improve their "Tradable Shares" ratio above 35%. </p><p>This deal is an attempt to rectify the situation.</p>

After market-close yesterday, Japan-based business system package software maker Obic Business Consultants (4733 JP) ("OBIC BC") announced a Secondary Offering of Shares for a total quantity of 9,714,000 shares which, at the current trading price, translates to a total offering size of ~¥52bn (US$470mn). In this announcement, the company mentioned that they had received a notification from the Tokyo Stock Exchange on 9th July 2021 stating that their "Tradable Shares" ratio did not satisfy the criteria for maintaining a listing on the “Prime Market". The Company is currently listed on the First Section of the Tokyo Stock Exchange and they intend to transition to the “Prime Market”. In order to do so, the company must be able to improve their "Tradable Shares" ratio above 35%. This deal is an attempt to rectify the situation.

Obic Business Consultants (4733 JP): Trying to Avoid TOPIX Deletion

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

<p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p><p style="text-align: left;">Our best and worst pair from Tuesday's 23 results and 17 forecasts/revisions announcements is <a href="https://www.smartkarma.com/entities/nitto-denko-corp" target="_blank" data-smartkarma-citation="entities:3666:1" rel="noopener">Nitto Denko (6988 JP)</a> and <a href="https://www.smartkarma.com/entities/disco-corp" target="_blank" data-smartkarma-citation="entities:15817:1" rel="noopener">DISCO (6146 JP)</a>.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/184/761/original/2021-01-27_05-58-12.png?1611694720" class="editor-image img-responsive" data-smartkarma-image-id="184761"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/184/762/original/2021-01-27_05-59-03.png?1611694753" class="editor-image img-responsive" data-smartkarma-image-id="184762"></figure></section><section></section><section><div style="text-align: center;" class="content-caption"> Source for all charts &amp; tables: Japan Analytics</div>
<section></section></section>

• BEST &amp; WORST •Our best and worst pair from Tuesday's 23 results and 17 forecasts/revisions announcements is Nitto Denko (6988 JP) and DISCO (6146 JP). Source for all charts &amp; tables: Japan Analytics


🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​01/​​​​​​​​​​26 Nitto Denko & Disco

<p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p><p>Our best and worst pairing from Monday's announcements is <a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec (6594 JP)</a> and <a href="https://www.smartkarma.com/entities/koei-tecmo-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20277:1" rel="noopener">Koei Tecmo (3635 JP)</a>. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/167/689/original/2020-10-27_05-41-07.png?1603744887" class="editor-image img-responsive" data-smartkarma-image-id="167689"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/167/690/original/2020-10-27_05-42-32.png?1603744992" class="editor-image img-responsive" data-smartkarma-image-id="167690"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div></section><hr><div><p style="text-align: center;"><strong>DAILY STATS</strong></p></div><hr><div><p style="text-align: center;"><strong>232Quarterly Results</strong></p></div><div><ul style="list-style-type: disc;">
<li><p><strong>Results Score:</strong> 31% Positive / 9% Neutral / 59% Negative</p></li>
<li><p><strong>Average Results Score Change:</strong> -1.9 points</p></li>
<li><p><strong>Average % Change in Revenue:</strong> -10.0% Quarter YoY / -4.8% Rolling TTM YoY </p></li>
<li><p><strong>Average Operating Profit Margin Change:</strong> -0.8ppt</p></li>
<li><p><strong>Percentage Making Quarterly Losses:</strong> 6%</p></li>
</ul></div><hr><div><p style="text-align: center;"><strong>33 Annual • 29 Interim Forecasts/Revisions</strong></p></div><div><ul style="list-style-type: disc;">
<li><p><strong>Annual Forecast/Revision Score:</strong> 39% Positive / 12% Neutral / 49% Negative</p></li>
<li><p><strong>Interim Forecast/Revision Score Change:</strong> 59% Positive / 0% Neutral / 41% Negative</p></li>
<li><p><strong>Average Forecast/Revision Score Change:</strong> +1.1 points</p></li>
</ul></div>

• BEST &amp; WORST •Our best and worst pairing from Monday's announcements is Nidec (6594 JP) and Koei Tecmo (3635 JP). Source for all charts &amp; tables: Japan AnalyticsDAILY STATS232Quarterly Results
Results Score: 31% Positive / 9% Neutral / 59% Negative
Average Results Score Change: -1.9 points
Average % Change in Revenue: -10.0% Quarter YoY / -4.8% Rolling TTM YoY 
Average Operating Profit Margin Change: -0.8ppt
Percentage Making Quarterly Losses: 6%
33 Annual • 29 Interim Forecasts/Revisions
Annual Forecast/Revision Score: 39% Positive / 12% Neutral / 49% Negative
Interim Forecast/Revision Score Change: 59% Positive / 0% Neutral / 41% Negative
Average Forecast/Revision Score Change: +1.1 points


🇯🇵 JAPAN • Results & Revisions 10/​​​​​​​​​​​​​​​​​26 Nidec, Canon, OBIC, Koei Tecmo, Nitto Denko

Quantitative Analysis

<div>
<p style="text-align: center;"><strong>• RELATIVE PRICE SCORE •</strong></p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/735/original/2020-09-23_11-03-49.png?1600826665" class="editor-image img-responsive" data-smartkarma-image-id="160735"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div>
<p><strong><a href="https://www.dropbox.com/s/6h3m1giwbtzcupg/2020-09-23_11-03-49.png?dl=0" target="_blank" rel="noopener">PEAK OUTLIER</a></strong> - Since the onset of  COVID-19 in March, the degree of polarisation in the Japanese equity market as measured by our Relative Price Score [definition below] has increased significantly. Although only 3.1% and 5.1% of listed companies are Overbought and Oversold, respectively, their market weight represented is 10.8% and 6.2%. Such extreme outlier weightings have not occurred since the technology 'bubble' of 2000, and, since then, only during the 2008/9 financial crisis. Investors have increasingly held and bid up perceived long-term domestic non-manufacturing 'winners' without much regard for valuation while discarding Japan's manufacturers, and transportation, utility and energy companies as well as insurers and banks.  </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/736/original/2020-09-23_11-11-07.png?1600827080" class="editor-image img-responsive" data-smartkarma-image-id="160736"></figure>
</div><p><strong>SECTOR TIMELINE</strong> - The twenty-eight-year history of Sector Relative Price Scores illustrates the ebbs and flows of investment themes in the market, from the 2000 Technology 'bubble' to the REIT and Real Estate peak of 2013/14, the <strong>Healthcare</strong> and <strong>FB&amp;T</strong> market of 2016/17. On the downside, there is greater Oversold 'persistence' in the <strong>Energy</strong>, <strong>Banks</strong>, <strong>Multi-Industry</strong> ( <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post (6178 JP))</a>  and <strong>Utilities</strong> Sectors. Currently, nine Sectors are Overbought, and four are Oversold - thirty-year and twenty-year highs, respectively.  </p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/741/original/2020-09-23_11-39-24.png?1600828791" class="editor-image img-responsive" data-smartkarma-image-id="160741"></figure><p>In the<strong> DETAIL</strong> section below, we provide an update on  Sector, Peer Group and individual company Relative Price Score trends and outliers and make some stock-specific comments.</p><div class="content-highlight"><p style="text-align: left;"><strong>RELATIVE PRICE SCORE OUTLIERS</strong> - The Relative Price Score (RPS) is a measure of price performance relative to TOPIX calculated by comparing the current deviation with the mean absolute deviation of monthly and daily relative share prices over the last 28 years and 24 months, respectively. As all companies on a comparable scale, <strong>'Overbought'</strong> and <strong>'Oversold' </strong>outliers and short-term changes in scoring can offer some trading opportunities. The data for all 3,883 currently-listed Companies is cap-weight-aggregated into Relative Price Scores for our 328 Peer Groups and 30 Sectors. The Overbought and Oversold outlier 'thresholds are set' at <strong>+4</strong> &amp; <strong>-2</strong> for Companies, <strong>+3</strong> &amp; <strong>-1.5</strong> for Peer Groups and<strong> +2</strong> and<strong> -1</strong> for Sectors, respectively. These thresholds equate with the top and bottom percentiles of over <strong>3.2</strong> million observations.</p></div>


• RELATIVE PRICE SCORE •
Source for all charts &amp; tables: Japan Analytics
PEAK OUTLIER - Since the onset of  COVID-19 in March, the degree of polarisation in the Japanese equity market as measured by our Relative Price Score [definition below] has increased significantly. Although only 3.1% and 5.1% of listed companies are Overbought and Oversold, respectively, their market weight represented is 10.8% and 6.2%. Such extreme outlier weightings have not occurred since the technology 'bubble' of 2000, and, since then, only during the 2008/9 financial crisis. Investors have increasingly held and bid up perceived long-term domestic non-manufacturing 'winners' without much regard for valuation while discarding Japan's manufacturers, and transportation, utility and energy companies as well as insurers and banks.  

SECTOR TIMELINE - The twenty-eight-year history of Sector Relative Price Scores illustrates the ebbs and flows of investment themes in the market, from the 2000 Technology 'bubble' to the REIT and Real Estate peak of 2013/14, the Healthcare and FB&amp;T market of 2016/17. On the downside, there is greater Oversold 'persistence' in the Energy, Banks, Multi-Industry ( Japan Post (6178 JP))  and Utilities Sectors. Currently, nine Sectors are Overbought, and four are Oversold - thirty-year and twenty-year highs, respectively.  In the DETAIL section below, we provide an update on  Sector, Peer Group and individual company Relative Price Score trends and outliers and make some stock-specific comments.RELATIVE PRICE SCORE OUTLIERS - The Relative Price Score (RPS) is a measure of price performance relative to TOPIX calculated by comparing the current deviation with the mean absolute deviation of monthly and daily relative share prices over the last 28 years and 24 months, respectively. As all companies on a comparable scale, 'Overbought' and 'Oversold' outliers and short-term changes in scoring can offer some trading opportunities. The data for all 3,883 currently-listed Companies is cap-weight-aggregated into Relative Price Scores for our 328 Peer Groups and 30 Sectors. The Overbought and Oversold outlier 'thresholds are set' at +4 &amp; -2 for Companies, +3 &amp; -1.5 for Peer Groups and +2 and -1 for Sectors, respectively. These thresholds equate with the top and bottom percentiles of over 3.2 million observations.

🇯🇵 JAPAN • September Relative Price Scores - Profiting from Outlier Mean Reversion

Japan

OBIC Co., Ltd. provides computer system integration, office automation, consultation, and system support services primarily for small and medium size companies.  The Company sells, leases, and maintains computers, peripherals, and related systems.  OBIC also develops and sells customized software and network systems.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

OBIC Co Ltd (4684 JP)

Simplex Holdings Pre-IPO - Steady Topline Growth but Appears to Be at Peak Margins

Simplex Holding’s shareholders aim to raise around US$300m via selling some of their stake in the company in its Japan IPO.

Sumeet Singh

Obic Business Consultants (4733 JP): Trying to Avoid TOPIX Deletion

Japan-based software maker OBIC Business Consultants have launched a large secondary sale of shares to raise the float percentage to meet Prime...

Janaghan Jeyakumar, CFA

🇯🇵 JAPAN • Results & Revisions 01/26 Nitto Denko & Disco

Our best and worst pair from Tuesday's 23 results and 17 forecasts/revisions announcements is Nitto Denko (6988 JP) and DISCO (6146 JP).

Campbell Gunn

🇯🇵 JAPAN • Results & Revisions 10/26 Nidec, Canon, OBIC, Koei Tecmo, Nitto Denko

• BEST & WORST • Our best and worst pairing from Monday's announcements is Nidec (6594 JP) and Koei Tecmo (3635...

Campbell Gunn

🇯🇵 JAPAN • September Relative Price Scores - Profiting from Outlier Mean Reversion

• RELATIVE PRICE SCORE • RELATIVE PRICE SCORE OUTLIERS - The Relative Price Score (RPS) is a measure of price performance relative to TOPIX...

Campbell Gunn

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Simplex Holdings Pre-IPO - Steady Topline Growth but Appears to Be at Peak Margins

Simplex Holding’s shareholders aim to raise around US$300m via selling some of their stake in the company in its Japan IPO.

Sumeet Singh

Obic Business Consultants (4733 JP): Trying to Avoid TOPIX Deletion

Japan-based software maker OBIC Business Consultants have launched a large secondary sale of shares to raise the float percentage to meet Prime...

Janaghan Jeyakumar, CFA

🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​01/​​​​​​​​​​26 Nitto Denko & Disco

Our best and worst pair from Tuesday's 23 results and 17 forecasts/revisions announcements is Nitto Denko (6988 JP) and DISCO (6146 JP).

Campbell Gunn

🇯🇵 JAPAN • Results & Revisions 10/​​​​​​​​​​​​​​​​​26 Nidec, Canon, OBIC, Koei Tecmo, Nitto Denko

• BEST & WORST • Our best and worst pairing from Monday's announcements is Nidec (6594 JP) and Koei Tecmo (3635...

Campbell Gunn

🇯🇵 JAPAN • September Relative Price Scores - Profiting from Outlier Mean Reversion

• RELATIVE PRICE SCORE • RELATIVE PRICE SCORE OUTLIERS - The Relative Price Score (RPS) is a measure of price performance relative to TOPIX...

Campbell Gunn

🇯🇵 JAPAN • Results & Revisions 01/26 Nitto Denko & Disco

🇯🇵 JAPAN • Results & Revisions 10/26 Nidec, Canon, OBIC, Koei Tecmo, Nitto Denko