APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

Japan Prime Realty Investmen / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-prime-realty-investmen" target="_blank" data-smartkarma-citation="entities:495:1" rel="noopener">Japan Prime Realty Investment (8955 JP)</a> aims to raise around US$130m in its Primary Offering, to fund its acquisition of  the Tokyo Tatemono Higashi Shibuya Building and repay borrowings.</li>
<li>The deal is somewhat anticipated, given that the REIT’s asset replacement strategy has been in the works for a couple of months now. </li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Japan Prime Realty Investment (8955 JP) aims to raise around US$130m in its Primary Offering, to fund its acquisition of  the Tokyo Tatemono Higashi Shibuya Building and repay borrowings.
The deal is somewhat anticipated, given that the REIT’s asset replacement strategy has been in the works for a couple of months now. 
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Japan Prime Realty Placement - Expected Deal, Has Corrected in the past Month

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

Japan Prime Realty Investmen / Event-Driven

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/japan-prime-realty-investmen" target="_blank" data-smartkarma-citation="entities:495:1" rel="noopener">Japan Prime Realty Investment (8955 JP)</a> (<strong>"JPR"</strong>) announced a follow-on equity offering to fund part of their recently announced property acquisition. </li>
<li>The primary offer quantity is 38,100 units. In addition, there will also be an over-allotment quantity of 1,900 units. The total size of this offering could be roughly ¥16bn (~US$135mn). </li>
<li>Below, we take a look at the attractiveness of JPR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.</li>
</ul>


Today after the close, Japan Prime Realty Investment (8955 JP) ("JPR") announced a follow-on equity offering to fund part of their recently announced property acquisition. 
The primary offer quantity is 38,100 units. In addition, there will also be an over-allotment quantity of 1,900 units. The total size of this offering could be roughly ¥16bn (~US$135mn). 
Below, we take a look at the attractiveness of JPR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.


Japan Prime Realty REIT (8955 JP): Offering Could Trigger Outperformance Vs TSEREIT Index

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Activia Properties / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/9498" target="_blank" data-smartkarma-citation="entities:9498:1" rel="noopener">Activia Properties Inc (3279 JP)</a>(API) plans to raise around US$200m/JPY22bn to fund the acquisition of three assets worth JPY44bn.</p></div><div>
<p>We have previously covered four other deals in the name: </p>
<ul><li>US$220m in Dec 2018, <a href="https://www.smartkarma.com/insights/activia-properties-placement-time-for-the-annual-fund-raise-dpu-accretive-past-deals-did-well" target="_blank" rel="noopener">Activia Properties Placement - Time for the Annual Fund Raise, DPU Accretive, past Deals Did Well</a>
</li></ul>
</div><div><ul style="list-style-type: disc;">
<li>US$130m in Dec 2017, <a href="https://www.smartkarma.com/insights/activia-properties-placement-back-again-in-just-over-a-year-past-deals-have-done-well" target="_blank" rel="noopener">Activia Properties Placement - Back Again in Just over a Year, past Deals Have Done Well</a>
</li>
<li>US$270m in Nov 2016,  <a href="https://www.smartkarma.com/insights/activia-properties-back-for-the-annual-capital-raise-but-macro-might-not-be-supportive-this-time" target="_blank" rel="noopener">Activia Properties - Back for the Annual Capital Raise but Macro Might Not Be Supportive This</a>, and</li>
<li>US$161m in Dec 2015,  <a href="https://www.smartkarma.com/insights/activia-properties-accretive-acquisition-should-add-to-the-previous-deals-record" target="_blank" rel="noopener">Activia Properties - Accretive Acquisition Should Add to the Previous Deals Record</a>.</li>
</ul></div><div><p>All the prior deals have done well over the short-term. In this note, we will run the deal through our ECM framework and talk about the deal dynamics.</p></div>

Activia Properties Inc (3279 JP)(API) plans to raise around US$200m/JPY22bn to fund the acquisition of three assets worth JPY44bn.
We have previously covered four other deals in the name: 
US$220m in Dec 2018, Activia Properties Placement - Time for the Annual Fund Raise, DPU Accretive, past Deals Did Well


US$130m in Dec 2017, Activia Properties Placement - Back Again in Just over a Year, past Deals Have Done Well

US$270m in Nov 2016,  Activia Properties - Back for the Annual Capital Raise but Macro Might Not Be Supportive This, and
US$161m in Dec 2015,  Activia Properties - Accretive Acquisition Should Add to the Previous Deals Record.
All the prior deals have done well over the short-term. In this note, we will run the deal through our ECM framework and talk about the deal dynamics.

Activia Properties Placement - Accretive Deal but Comes with a Weak Backdrop

<div><p>On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.</p></div><div><p>While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <a href="https://www.smartkarma.com/insights/j-reit-offering-primer-get-ready-for-offering-season-2021" target="_blank" data-smartkarma-citation="insights:46416" rel="noopener">J-REIT Offering Primer: Get Ready for Offering Season 2021</a>. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - <a href="https://www.smartkarma.com/entities/activia-properties-inc" target="_blank" data-smartkarma-citation="entities:9498:1" rel="noopener">Activia Properties (3279 JP)</a> ("API")- with greater emphasis on the potential for strong post-offering secondary market performance. </p></div><p><a href="https://www.smartkarma.com/entities/activia-properties-inc" target="_blank" data-smartkarma-citation="entities:9498:1" rel="noopener">Activia Properties (3279 JP)</a> announced a follow-on equity offering today after market-close to fund part of their recent property acquisition. The primary offer quantity is 49,030 units. In addition, there will also be an over-allotment quantity of 2,500 units. The total size of this offering could be roughly ¥23bn (~US$210mn). </p><p><em>More below the fold. </em></p>

On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - Activia Properties (3279 JP) ("API")- with greater emphasis on the potential for strong post-offering secondary market performance. Activia Properties (3279 JP) announced a follow-on equity offering today after market-close to fund part of their recent property acquisition. The primary offer quantity is 49,030 units. In addition, there will also be an over-allotment quantity of 2,500 units. The total size of this offering could be roughly ¥23bn (~US$210mn). More below the fold. 

Activia Properties (3279 JP): Offering Could Trigger Outperformance Vs TSEREIT Index

Daiwa House Reit Investment / Event-Driven

<p>J-REITs have historically outperformed the TSEREIT Index on average in the wake of follow-on equity offerings, with win rates exceeding 80%.</p><p>While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <em><a href="https://www.smartkarma.com/insights/j-reit-offering-primer-get-ready-for-offering-season-2021" target="_blank" data-smartkarma-citation="insights:46416" rel="noopener">J-REIT Offering Primer: Get Ready for Offering Season 2021</a></em>. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offerings - <a href="https://www.smartkarma.com/entities/daiwa-house-reit-investment-cb077099-8006-45e4-83cf-6ac7f19cd384" target="_blank" data-smartkarma-citation="entities:11283:1" rel="noopener">Daiwa House Reit Investment (8984 JP)</a><strong>("DHR")</strong> - with greater emphasis on the potential for strong post-offering secondary market performance. </p><p>DHR announced a <a href="https://www.daiwahouse-reit.co.jp/file/en-ir_news-3926cc869b501ab42a4918d64facbc098f8c6b97.pdf" target="_blank" rel="noopener">follow-on equity offering</a> after the close on 18th August 2021 to fund part of their recent property acquisition. The primary offer quantity is 115,000 units. In addition, there will also be an over-allotment quantity of 9,000 units. The total size of this offering could be roughly ¥37.7bn (~US$343mn) which is slightly larger than some of the recent offerings by other JREITs. </p><p>The Offer Price will be determined between 25th August 2021 and 27th August 2021 (typically it has been the first day of this window for most JREIT offerings) and the two business days following the Offer Price Determination Day ("Pricing Date") will be the Application Date. </p><p><em>More below the fold. </em></p>

J-REITs have historically outperformed the TSEREIT Index on average in the wake of follow-on equity offerings, with win rates exceeding 80%.While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offerings - Daiwa House Reit Investment (8984 JP)("DHR") - with greater emphasis on the potential for strong post-offering secondary market performance. DHR announced a follow-on equity offering after the close on 18th August 2021 to fund part of their recent property acquisition. The primary offer quantity is 115,000 units. In addition, there will also be an over-allotment quantity of 9,000 units. The total size of this offering could be roughly ¥37.7bn (~US$343mn) which is slightly larger than some of the recent offerings by other JREITs. The Offer Price will be determined between 25th August 2021 and 27th August 2021 (typically it has been the first day of this window for most JREIT offerings) and the two business days following the Offer Price Determination Day ("Pricing Date") will be the Application Date. More below the fold. 

Daiwa House REIT Investment (8984 JP): Expect A Correction Before Pricing Date

Japan

ORIX JREIT Inc. is a real estate investment trust (REIT) which invests in securitized real estate products.  The Company directly invests in real estate properties such as offices, rental housings, and hotels.

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

Orix JREIT Inc (8954 JP)

Japan Prime Realty Placement - Expected Deal, Has Corrected in the past Month

Japan Prime Realty Investment (8955 JP) aims to raise around US$130m in its Primary Offering, to fund its acquisition of the Tokyo Tatemono...

Clarence Chu

Japan Prime Realty REIT (8955 JP): Offering Could Trigger Outperformance Vs TSEREIT Index

Large-cap diversified JREIT JPR announced a ~US$135mn follow-on public equity offering to fund their recent property acquisition. This might act as...

Janaghan Jeyakumar, CFA

Activia Properties Placement - Accretive Deal but Comes with a Weak Backdrop

Activia Properties Inc (3279 JP) plans to raise around US$200m/JPY22bn to fund the acquisition of three assets worth JPY44bn.

Sumeet Singh

Activia Properties (3279 JP): Offering Could Trigger Outperformance Vs TSEREIT Index

Large cap diversified JREIT Activia Properties has launched a JPY23bn (US$210mn) follow-on equity offering which could trigger outperformance...

Janaghan Jeyakumar, CFA

Daiwa House REIT Investment (8984 JP): Expect A Correction Before Pricing Date

Large cap diversified JREIT Daiwa House REIT launched an equity offering to partially fund their recent acquisition of properties. The offering...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)