In today’s briefing:
- Renesas (6723) – YET ANOTHER Clean-Up Block Trade – This Time Mitsubishi Elec
- Renesas Electronics Block – Smaller than Recent Deals but Still Likely Well Flagged
- Tokyo Metro IPO Early Look – Could Raise Around US$2bn While Still Recovering from COVID
- Precinct Properties NZ Placement – While the Deal Will Be a Clean-Up, Momentum Hasn’t Been Strong
- Pre-IPO Hangzhou Jiuyuan Gene Engineering – Old Pipelines Are Difficult to Bring New Breakthroughs
- Bharat Highways InvIT IPO – Hardly Attractive Given the Lackluster Sentiment
Renesas (6723) – YET ANOTHER Clean-Up Block Trade – This Time Mitsubishi Elec
- Today after the close, Mitsubishi Electric (6503 JP) announced the sale of its position in Renesas Electronics (6723 JP). That’s 50,706,800 shares.
- This is the third large block in four months (Renesas in November for 223mm shares, NEC and Hitachi in January 2024 for 123mm shares).
- This is smaller, and reasonably well-flagged. Index demand is longer-dated.
Renesas Electronics Block – Smaller than Recent Deals but Still Likely Well Flagged
- Mitsubishi Electric (6503 JP) is looking to raise approximately US$800m through an accelerated secondary block deal, via selling 50.71m shares (2.6% of TSO) of Renesas Electronics (6723 JP) stock.
- The deal will be an easy one to digest at only three days of three month ADV.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Tokyo Metro IPO Early Look – Could Raise Around US$2bn While Still Recovering from COVID
- Tokyo Metro (TKYMETRO JP)’s shareholders, the Japanese and Tokyo Metropolitan Governments, could look to raise up to US$2bn by selling half of their stake via an IPO.
- Tokyo Metro is one of the two metro network operators in the Tokyo region. It operates nine subway lines.
- In this note, we take an early look at the possible listing.
Precinct Properties NZ Placement – While the Deal Will Be a Clean-Up, Momentum Hasn’t Been Strong
- ADIA, via Haumi Co, is looking to raise NZ$262m (US$160m) from selling its entire stake in Precinct Properties New Zealand (PCT NZ).
- While the deal will be a clean-up share sale, the deal is a large one for the firm to digest at 344 days of its three month ADV.
- Momentum on the stock hasn’t been great, with the shares continuing to correct since the onset of the pandemic.
Pre-IPO Hangzhou Jiuyuan Gene Engineering – Old Pipelines Are Difficult to Bring New Breakthroughs
- Jiuyuan is not a typical innovative pharmaceutical enterprise with cutting-edge technology. The current seemingly good revenue/profit performance is actually based on some old products from over a decade ago.
- The risk of VBP could lead to a significant decrease in profit margins at any time. The cyclical changes in heparin industry would put more pressure on Jiuyuan’s performance.
- As Jiuyuan has not yet demonstrated superior clinical data in Jikeqin for overweight/obesity indication, together with fierce competition, we are cautious about the performance in GLP-1s pipeline at this stage.
Bharat Highways InvIT IPO – Hardly Attractive Given the Lackluster Sentiment
- Bharat Highways InVIT (BHINV IN) is looking to raise up to US$301m in its Indian IPO.
- Bharat Highways InVIT is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
- In this note, we talk about the company’s historical performance and provide our quick thoughts on valuation.
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