In today’s briefing:
- Japan Post Bank (7182 JP) Announces Its Re-IPO – Big Offering, Complicated but Big Index Flows
- Japan Post Bank Placement – Deal Structure, past Deals, Index, Buyback
- Japan Post Bank (7182 JP): Japan Post Holdings to Sell Down a Third of Its Stake
- Lu DaoPei Medical Group Pre-IPO – Ramp up in Progress but Looks Promising
- UBTech Robotics Pre-IPO Tearsheet
Japan Post Bank (7182 JP) Announces Its Re-IPO – Big Offering, Complicated but Big Index Flows
- Japan Post Bank (7182 JP) has announced the mooted offering by Japan Post Holdings (6178 JP) whereby they will sell 29% of the bank to go from 89% to 60%.
- There are two buybacks – one pre offering and one after – which is an attempt to mitigate impact. This creates interesting but complicated strategy possibilities. Lots of details here.
- Big picture, this is a Very Big Offering at ¥1.236trln at today’s close including greenshoe. 80/20 dom/international. A TOUGH sell. 1.089bn shares is 4x current float.
Japan Post Bank Placement – Deal Structure, past Deals, Index, Buyback
- Japan Post Holdings (6178 JP) plans to sell around US$9bn worth of Japan Post Bank (7182 JP), trimming its stake by a third.
- Initial news of the deal broke last week, and we had a look in, Japan Post Bank Possible Placement – Here We Go Again with the US$9bn Overhang.
- In this note, we talk about the deal structure and impact.
Japan Post Bank (7182 JP): Japan Post Holdings to Sell Down a Third of Its Stake
- Japan Post Holdings (6178 JP)/JPH has announced the offering of up to 1.1 billion shares in Japan Post Bank (7182 JP)/JPB to reduce its stake from 89.00% to 59.95%.
- JPB will carry out a ToSTNeT-3 buyback (maximum of JPY70 billion) and an on-market buyback (maximum of JPY80 billion). JPH can sell additional shares into the ToSTNeT-3 buyback.
- For long-term investors, JPB’s forward P/B of 0.47x and yield of 4.41% are attractive to peers. JPB’s current price ratio is undemanding vs TOPIX Banks ETF and JPH.
Lu DaoPei Medical Group Pre-IPO – Ramp up in Progress but Looks Promising
- Lu Daopei Medical Group (1816743D CH) is looking to raise around US$400m in its upcoming Hong Kong IPO.
- Lu DaoPei Medical Group (LDPM) is a hospital operator focusing on hematology healthcare services. As per F&S, it was the largest hematology healthcare services provider in China by 2021 revenue.
- LDPM has supported its growth through its flagship hospital. However, it is unclear whether the firm will be able to sustainably maintain profitability in the long term.
UBTech Robotics Pre-IPO Tearsheet
- UBTech Robotics (1683374D HK) is looking to raise about US$700m in its upcoming HK IPO. The deal will be run by Guotai Junan.
- UBTech Robotics is engaged in artificial intelligence (AI)-empowered robotics in China, dedicated to the innovation of humanoid robots and development and sales of smart service robotic solutions.
- It has a full stack of proprietary robotic, AI and integrated robotic and AI technologies for application in a range of enterprise-level and consumer-level use scenarios across various sectors.
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