In today’s briefing:
- Sanrio (8136 JP) Large Secondary Offering – Don’t Say Hello Kitty! Too Soon
- Sanrio (8136 JP): A US$840 Million Secondary Offering
- Sanrio Placement – Opportunistic >US$800m Selling at All-Time Highs
- Kioxoa Pre-IPO – The Negatives – Still a Follower of the Cycle
- SF Holdings A/H Trading – Strong Demand but Is Probably Close to Fair Value
- FineToday Holdings (289A JP) IPO: Valuation Insights
- NTPC Green IPO Trading – Lacklustre Demand, Similar to Recent Listings
- MNC Solutions Pre-IPO – Thoughts on Valuation – Defensively, Would Ideally like a Further Discount
- Aegis Vopak Terminals Pre-IPO Tearsheet
Sanrio (8136 JP) Large Secondary Offering – Don’t Say Hello Kitty! Too Soon
- Today, Sanrio (8136 JP) announced a large secondary offering where banks would sell down shares and the Tsuji family would sell a few shares at the margin.
- The stock has been on a rocket for two years. It’s expensive. Growth slows next year. Will this cause momentum to turn? Maybe. The offering is 38% of Max RWF.
- I think one could give this a pass, and even sell it if it opens down small.
Sanrio (8136 JP): A US$840 Million Secondary Offering
- Sanrio (8136 JP) has announced a secondary offering of up to 25.9 million shares (29.8 million including overallotment), worth around US$840 million (US$970 million including overallotment).
- Sanrio’s goal with the secondary offering is (i) to reduce cross-shareholdings and (ii) to expand and diversify the shareholder base, which should further enhance liquidity.
- Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 10 and 13 December (likely 10 December).
Sanrio Placement – Opportunistic >US$800m Selling at All-Time Highs
- A group of domestic financial institutions and the firm’s executives are looking to raise US$840m from trimming their stakes in Sanrio (8136 JP).
- While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Kioxoa Pre-IPO – The Negatives – Still a Follower of the Cycle
- Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
- It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
- In this note, we talk about the not-so-positive aspects of the deal.
SF Holdings A/H Trading – Strong Demand but Is Probably Close to Fair Value
- S.F. Holding (002352 CH), China’s largest express delivery company, raised around US$860m in its H-share listing in Hong Kong.
- SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
- We have covered the company and deal background in our previous notes. In this note, we talk about the trading dynamics.
FineToday Holdings (289A JP) IPO: Valuation Insights
- FineToday Holdings Co Ltd (289A JP) is a Japanese personal care business seeking to raise up to US$500 million. It will be listed on 17 December.
- We previously discussed the IPO in FineToday Holdings (289A JP) IPO: The Bull Case and FineToday Holdings (289A JP) IPO: The Bear Case.
- Our valuation analysis suggests that the IPO reference price of JPY2,150 per share is unattractive. Therefore, we would pass on the IPO.
NTPC Green IPO Trading – Lacklustre Demand, Similar to Recent Listings
- NTPC Green Energy Ltd (2214556D IN) raised around US$1.2bn in its upcoming India IPO.
- NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
- We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.
MNC Solutions Pre-IPO – Thoughts on Valuation – Defensively, Would Ideally like a Further Discount
- MNC Solution (MNC KS) is looking to raise US$200m in its Korea IPO.
- MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
- In our previous note, we looked at the firm’s past performance and undertook a peer comparison. In this note, we discuss our thoughts on valuation.
Aegis Vopak Terminals Pre-IPO Tearsheet
- Aegis Vopak Terminals Ltd (1902844D IN) is looking to raise upto US$415m in its upcoming India IPO. The deal will be run by ICICI, IIFL, Jefferies, HDFC and BNP Paribas.
- It is a joint-venture between Aegis Logistics, India’s largest third-party LPG handler and Vopak India BV, part of Royal Vopak, one of world’s leading tank storage companies, according to CRISIL.
- AVTL was the largest Indian third-party owner and operator of tank storage terminals for LPG, liquid products in terms of storage capacity, as of June 30, 2024, as per CRISIL.
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