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

JD.com Inc (ADR) / Equity Capital Markets

<ul>
<li>On 23rd Dec, Tencent declared a dividend in the form of distribution in specie of 457.326m shares of JD.com, i.e. 1 share of JD.com for every 21 shares of Tencent.</li>
<li>While Tencent went ex-div on 20th Jan 2022, the actual settlement of the distribution is expected to happen on or about 25th Mar 2022.</li>
<li>In this note, we look at Tencent’s shareholding in order to decipher the impact on JD.com’s shares once the distribution is settled to determine who the sellers could be.</li>
</ul>


On 23rd Dec, Tencent declared a dividend in the form of distribution in specie of 457.326m shares of JD.com, i.e. 1 share of JD.com for every 21 shares of Tencent.
While Tencent went ex-div on 20th Jan 2022, the actual settlement of the distribution is expected to happen on or about 25th Mar 2022.
In this note, we look at Tencent’s shareholding in order to decipher the impact on JD.com’s shares once the distribution is settled to determine who the sellers could be.


JD.com Tencent Div Distribution - The US$10bn Overhang

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Private Capital Markets

<a href="https://www.smartkarma.com/entities/carousell-pte-ltd" target="_blank" data-smartkarma-citation="entities:28154:1" rel="noopener">Carousell Pte Ltd (1040620D SP)</a> is South East Asia's largest  "classifieds marketplace" and it claims to make selling as easy as taking a photo and buying as simple as chatting. The traffic through Carousell is impressive but the question is can it monetize this huge potential?
Founded in August 2012, Carousell began in Singapore and is now one of the world’s largest and fastest-growing classifieds marketplaces, with a presence in eight markets across South East Asia, together with Taiwan and Hong Kong.
Carousell offers through classified listings a diverse range of products across a variety of categories, including lifestyle, gadgets, and fashion accessories but has been moving to more profitable and big-ticket areas, such as autos, property, and job ads.
The company is backed by a number of large-sized investors including <a href="https://www.smartkarma.com/entities/telenor-asa" target="_blank" data-smartkarma-citation="entities:22258:1" rel="noopener">Telenor ASA (TEL NO)</a>, Rakuten Ventures <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>, Naver, Sequoia Capital (India), OLX, and most recently STIC investments giving the company strong backing with the most recent valuation at US$1.1bn, sealing its entry to the unicorn club. 
The company was reportedly exploring a potential listing in the US through a SPAC listing which could value the company at as much as US$1.5bn but management has said that it is considering all options to grow the company including an IPO. Carousel this year appointed a former <a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a> executive Edwin Chan as its CFO. Chan oversaw a gaming hardware company’s public listing in Hong Kong in 2017. We see this company as one of the most ESG-friendly investments available given its exposure to the circular economy.

Carousell Pte Ltd (1040620D SP) is South East Asia's largest  "classifieds marketplace" and it claims to make selling as easy as taking a photo and buying as simple as chatting. The traffic through Carousell is impressive but the question is can it monetize this huge potential?
Founded in August 2012, Carousell began in Singapore and is now one of the world’s largest and fastest-growing classifieds marketplaces, with a presence in eight markets across South East Asia, together with Taiwan and Hong Kong.
Carousell offers through classified listings a diverse range of products across a variety of categories, including lifestyle, gadgets, and fashion accessories but has been moving to more profitable and big-ticket areas, such as autos, property, and job ads.
The company is backed by a number of large-sized investors including Telenor ASA (TEL NO), Rakuten Ventures Rakuten Inc (4755 JP), Naver, Sequoia Capital (India), OLX, and most recently STIC investments giving the company strong backing with the most recent valuation at US$1.1bn, sealing its entry to the unicorn club. 
The company was reportedly exploring a potential listing in the US through a SPAC listing which could value the company at as much as US$1.5bn but management has said that it is considering all options to grow the company including an IPO. Carousel this year appointed a former Razer Inc (1337 HK) executive Edwin Chan as its CFO. Chan oversaw a gaming hardware company’s public listing in Hong Kong in 2017. We see this company as one of the most ESG-friendly investments available given its exposure to the circular economy.

Carousell - Champion of the Circular Economy

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

The following is an in-depth review of Japanese retail in the last 18 months covering all the main formats and categories, providing a quick way to see an overview of all the key trends and winners and losers in Japanese retailing now and going forward.FY2020 was an anomaly and one that businesses everywhere will want to forget and never repeat. There was more than enough pain among Japan’s top retailers last year, but equally some formats did surprisingly well given the circumstances.For most, work-from-home was the single most important factor in determining a chain’s fortunes. City-centre stores and shopping centres offering mostly discretionary shopping have been hit hard, as have convenience stores.But those chains selling essentials, healthcare, electronics and, most importantly, food, all saw their fortunes improve. The pandemic has also revealed the strong, dynamic players and exposed the weaker ones. Oh, and everyone needs to be online.

The following is an in-depth review of Japanese retail in the last 18 months covering all the main formats and categories, providing a quick way to see an overview of all the key trends and winners and losers in Japanese retailing now and going forward.FY2020 was an anomaly and one that businesses everywhere will want to forget and never repeat. There was more than enough pain among Japan’s top retailers last year, but equally some formats did surprisingly well given the circumstances.For most, work-from-home was the single most important factor in determining a chain’s fortunes. City-centre stores and shopping centres offering mostly discretionary shopping have been hit hard, as have convenience stores.But those chains selling essentials, healthcare, electronics and, most importantly, food, all saw their fortunes improve. The pandemic has also revealed the strong, dynamic players and exposed the weaker ones. Oh, and everyone needs to be online.

The Polarising Pandemic in Japanese Retail

Japan’s retail and distribution sector has long been seen as fragmented, even to the point of being accused of inefficiency. On the surface, concentration levels do remain low, but scratch that surface and a very different picture emerges.
By format and by category sector, larger companies are taking increasing share and, over the past five years, this trend has accelerated.
Now, given the pressures of Covid, there is ample opportunity for stronger players to gain ground by buying out weaker ones, while some mid-level companies are joining together, hoping to become a fish too big to swallow.
Business tie-ups are also increasing in number, particularly as physical retailers seek to bring in and learn skills necessary to succeed in e-commerce and to build omnichannel models.
The following is a detailed review of how concentration has increased along with a map of who own who in retailing today.
There is a strong possibility that we could see some really big deals, even ones that span format and geographical borders, as many mid-sized retailers recognise that independent survival is getting hard. Acquirers will use the current environment to diversify into new areas, expand volumes and market share, or simply acquire more retail property for long-term development.

Japan’s retail and distribution sector has long been seen as fragmented, even to the point of being accused of inefficiency. On the surface, concentration levels do remain low, but scratch that surface and a very different picture emerges.
By format and by category sector, larger companies are taking increasing share and, over the past five years, this trend has accelerated.
Now, given the pressures of Covid, there is ample opportunity for stronger players to gain ground by buying out weaker ones, while some mid-level companies are joining together, hoping to become a fish too big to swallow.
Business tie-ups are also increasing in number, particularly as physical retailers seek to bring in and learn skills necessary to succeed in e-commerce and to build omnichannel models.
The following is a detailed review of how concentration has increased along with a map of who own who in retailing today.
There is a strong possibility that we could see some really big deals, even ones that span format and geographical borders, as many mid-sized retailers recognise that independent survival is getting hard. Acquirers will use the current environment to diversify into new areas, expand volumes and market share, or simply acquire more retail property for long-term development.

Who Owns Who: Concentration Levels Accelerate in Japan Retail, with More M&A to Come

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

<ul>
<li>The company’s targets are underwhelming given the opportunity but low expectations built in</li>
<li>A revamped strategy to increase profitability and shareholder returns is “radical” for this old-school company</li>
<li>Execution is key for certain parts of the plan, but the market can do the rest</li>
</ul>


The company’s targets are underwhelming given the opportunity but low expectations built in
A revamped strategy to increase profitability and shareholder returns is “radical” for this old-school company
Execution is key for certain parts of the plan, but the market can do the rest


Return to Sender: Japan Post Holdings (6178.T) – Entering the Modern Age

Japan

Rakuten Group, Inc. provides Internet services. The Company offers Internet finance services which including "Rakuten Card" and "Rakuten Bank". Rakuten Group also provides digital content services including electronic book services.

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Rakuten (4755 JP)

JD.com Tencent Div Distribution - The US$10bn Overhang

On 23rd Dec 21, Tencent declared a dividend in the form of distribution in specie of 1 share of JD.com for every 21 shares of Tencent. The shares...

Sumeet Singh

Carousell - Champion of the Circular Economy

Carousell is South-East Asia's largest classifieds marketplace which recently entered the uniform club with a valuation of US$1.1bn. It is a unique...

Angus Mackintosh

The Polarising Pandemic in Japanese Retail

A complete review of the Japanese retail sector in the last 18 months, format by format, category by category, providing key trends and winners &...

Michael Causton

Who Owns Who: Concentration Levels Accelerate in Japan Retail, with More M&A to Come

Japanese retail is in the process of extensive concentration and market consolidation through M&A, organic expansion and tie-ups. Numerous...

Michael Causton

Return to Sender: Japan Post Holdings (6178.T) – Entering the Modern Age

Company's underwhelming targets should be beaten. Its plans are being revamped with a "radical" strategy to increase profitability and shareholder...

Rikki Malik

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52-week Range

Market Cap (USDm)

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JD.com Tencent Div Distribution - The US$10bn Overhang

On 23rd Dec 21, Tencent declared a dividend in the form of distribution in specie of 1 share of JD.com for every 21 shares of Tencent. The shares...

Sumeet Singh

Carousell - Champion of the Circular Economy

Carousell is South-East Asia's largest classifieds marketplace which recently entered the uniform club with a valuation of US$1.1bn. It is a unique...

Angus Mackintosh

The Polarising Pandemic in Japanese Retail

A complete review of the Japanese retail sector in the last 18 months, format by format, category by category, providing key trends and winners &...

Michael Causton

Who Owns Who: Concentration Levels Accelerate in Japan Retail, with More M&A to Come

Japanese retail is in the process of extensive concentration and market consolidation through M&A, organic expansion and tie-ups. Numerous...

Michael Causton

Return to Sender: Japan Post Holdings (6178.T) – Entering the Modern Age

​Company's underwhelming targets should be beaten. Its plans are being revamped with a "radical" strategy to increase profitability and shareholder...

Rikki Malik

Company's underwhelming targets should be beaten. Its plans are being revamped with a "radical" strategy to increase profitability and shareholder...