In today’s briefing:
- Senko Group (9069 JP) Offering – Banks and Insurers Unwinding Cross-Holdings in Offering
- Heiwado (8276 JP) – Banks and Insurers Unwinding Cross-Holdings In Offering
- Amman Mineral International Lockup Expiry – Large Lockup Expiry, Sitting on Sizeable Profits
- Initial Thoughts on the Webtoon Entertainment IPO
- Waaree Energies IPO- Forensic Analysis
- Auntea Jenny (Shanghai) Industrial Pre-IPO Tearsheet
- Trial Holdings Pre-IPO – Refiling Updates – Margin Uptick, More Golf Courses
Senko Group (9069 JP) Offering – Banks and Insurers Unwinding Cross-Holdings in Offering
- SENKO Group Holdings Co., Ltd. (9069 JP) today announced large financial institutional cross-holders would sell shares in a Secondary Offering. There’s a buyback on the back end.
- Cross-Holding unwinding is the subject of the moment. It will continue to be so. It will involve selldowns, and buybacks. Study the model of what companies must do what.
- In this case, Senko has a LOT of cross-holders and minimal excess cash. So investors buy more shares. But there is a buyback and index demand to come.
Heiwado (8276 JP) – Banks and Insurers Unwinding Cross-Holdings In Offering
- Heiwado Co Ltd (8276 JP) today announced a Secondary Offering sell-down by cross-holders, combined with a buyback post-offering to mitigate some of the effects of overhang.
- Banks and insurers are selling, and that will leave the stock with a lot of cross-holders left, but investors should look at the model given he zeitgeist.
- Companies with lots of cross-holders have to be “fair” to them. Those without copious cash have to spread it around so this transaction model looks likely to be continued.
Amman Mineral International Lockup Expiry – Large Lockup Expiry, Sitting on Sizeable Profits
- Amman Mineral Internasional (AMMN IJ) raised around US$714m in its Indonesia IPO, after pricing the deal at IDR1,695/share. Its eight-month lockup will expire on 21st Feb 2024.
- Amman Mineral International (AMI) carries out exploration, development, mining, and processing. The company operates an open pit copper and gold mine known as the Batu Hijau mine in Indonesia.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Initial Thoughts on the Webtoon Entertainment IPO
- Naver Corp (035420 KS) is trying to complete the IPO of its affiliate Webtoon Entertainment in the US stock market as early as June 2024.
- The expected value of Webtoon Entertainment (post IPO) is about US$3 billion to US$4 billion. Webtoon Entertainment is seeking to raise about US$500 million in this IPO.
- The IPO of Webtoon Entertainment in the US is likely to have a positive impact on Naver Corp (035420 KS).
Waaree Energies IPO- Forensic Analysis
- Waaree Energies Limited (0656504D IN) (WEL) has filed its DRHP. The company is the largest player in the Solar PV Modules manufacturing space in the country.
- The company has seen a sharp growth in sales in F23, backed by China plus one phenomemon.
- However, the financials do have a few talking points, such as high RPT, large inventory in transit, faster depreciating newer assets, etc.
Auntea Jenny (Shanghai) Industrial Pre-IPO Tearsheet
- Auntea Jenny (Shanghai) Industrial (AJI HK) is looking to raise US$300m in its upcoming Hong Kong IPO. The bookrunners on the deal are CITIC Securities, Haitong, and DFZQ.
- Auntea Jenny (Shanghai) Industrial (Auntea) is a freshly-made beverage producer.
- As per CIC, the firm operates the fourth largest network of freshly-made tea shops in China as of Sept 23, with an extensive reach into the lower-tier markets
Trial Holdings Pre-IPO – Refiling Updates – Margin Uptick, More Golf Courses
- Trial Holdings (5882 JP) (TH) is now looking to raise around US$234m in its Japan IPO, after having canceled its prior listing attempt last year.
- TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
- We have looked at the past performance in our previous notes. In this note, we talk about the updates from its recent filings.
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