In today’s briefing:
- Mitsui & Co (8031) – ¥100bn Overnight Equity Offering
- Mitsui & Co Placement – Another Cross-Shareholding Unwind, This Is a Small One to Digest
- Japan Hotel REIT Placement – Relatively Large Deal but It Is Accretive
- Avanse Financial Services Pre-IPO Tearsheet
- Hyundai Motor India Pre-IPO – The Positives – Quasi-Local, Riding the SUV Wave
Mitsui & Co (8031) – ¥100bn Overnight Equity Offering
- Today after the close, Mitsui & Co Ltd (8031 JP) announced that MS&AD Insurance (8725 JP) and Sumitomo Mitsui Financial Group (8316 JP) would sell 14.9mm shares in an offering.
- This will get priced today or tomorrow, sold to institutional investors. This is ¥107bn, 4 days of ADV and 1% of shares out. It is not dilutive.
- Mitsui & Co has a buyback program with ¥123bn left til end-Sep, when presumably it will reload. Looks easy today, but measuring Mitsui & Co vs Peers is less flattering.
Mitsui & Co Placement – Another Cross-Shareholding Unwind, This Is a Small One to Digest
- MS&AD Insurance (8725 JP) and Sumitomo Mitsui Financial Group (8316 JP) are looking to raise US$691m from trimming their respective stakes in Mitsui & Co Ltd (8031 JP).
- While this appears to be another cross-shareholding unwind in Japan, we would argue that the selldown isn’t outright well-flagged given the uncertainty of timing the selldown.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Japan Hotel REIT Placement – Relatively Large Deal but It Is Accretive
- Japan Hotel Reit Investment (8985 JP) aims to raise around US$214m to partly fund the acquisition of four hotel assets.
- The company has undertaken a number of deals in the past, most of which have managed to perform well.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Avanse Financial Services Pre-IPO Tearsheet
- Avanse Financial Services (1288481D IN) is looking to raise up to US$419m in its upcoming India IPO. The bookrunners will be JPM, Nomura, Kotak, Avendus, Nuvama Wealth and SBI Capital.
- Avanse Financial Services (AFS) is an education focused non-banking financial company (NBFC) operating in India.
- It offers full stack education products ranging from education loans for students to growth capital for education institutions through education infrastructure loans.
Hyundai Motor India Pre-IPO – The Positives – Quasi-Local, Riding the SUV Wave
- Hyundai Motor (005387 KS) is looking to raise around US$3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
- HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
- In this note, we talk about the positive aspects of the deal.
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