In today’s briefing:
- Socionext (6526 JP) – Pre-IPO Lockup Expiry Offering Will Double Real World Float
- Socionext Placement – A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains
- Socionext (6526 JP): US$1.9bn Secondary Placement
- Tryt IPO – Valuation Seems Digestible at the Bottom End, but the Firm Still Needs to Get a Lot Right
- Robosense Technology Pre-IPO Tearsheet
- TRYT IPO: Revised IPO Price Range Remains Unattractive
- Zhejiang Yongtai Technology GDR Listing – Discount Wider than Recent Deals & Inline with Average
- Lalatech Holdings Limited Pre-IPO – Thoughts on Valuation – Needs a Very Big Cut from Pre-IPO Rounds
Socionext (6526 JP) – Pre-IPO Lockup Expiry Offering Will Double Real World Float
- Today after the close, SoC and market darling Socionext (6526 JP) announced that DBJ, Fujitsu, and Panasonic would offer the remaining shares they in a US$1.8bn secondary offering.
- Pshaw…. that’s only 2.5 days of 20-day ADV… Not a lot. But in fact, that is a LOT of stock.
- I harp on understanding shareholder structure. I think it worthwhile. Here it matters too.
Socionext Placement – A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains
- Three shareholders of Socionext (6526 JP) aim to raise around US$1.8bn via selling all of their shares in Socionext.
- Socionext was listed on 12th Oct 2022, when it raised US$457m in its upsized Japan IPO. Its six-month lockup expired in Apr 2023. Its shares are up 6x since listing.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Socionext (6526 JP): US$1.9bn Secondary Placement
- Socionext (6526 JP) announced a pure secondary offering of 12.6 million or 37.50% of outstanding shares. At the last close, the placement is worth JPY277 billion (US$1.9 billion)
- The selling shareholders’ primary motivation for exiting their shareholding is to capitalise on the extraordinary share price. Socionext shares are up 6x from the IPO price of JPY3,650 per share.
- We think looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 11 to 13 July (likely 11 July).
Tryt IPO – Valuation Seems Digestible at the Bottom End, but the Firm Still Needs to Get a Lot Right
- Tryt Inc (9164 JP) is looking to raise up to US$360m in its Japan IPO.
- Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
- In this note, we will revisit our earnings assumptions and share our thoughts on valuation at the final price range.
Robosense Technology Pre-IPO Tearsheet
- Robosense Technology (ROBO HK) (RT) is looking to raise around US$300m (estimated) in its upcoming Hong Kong IPO. The deal will be run by JPM and China Renaissance.
- As of Mar 23, it had earned design wins for mass production of LiDAR for 52 vehicles with 21OEMs and Tier 1 suppliers, ranking No. 1 globally, according to CIC.
- As of Mar 23, it had served the largest number of automotive OEMs and Tier 1 suppliers, according to CIC.
TRYT IPO: Revised IPO Price Range Remains Unattractive
- Tryt Inc (9164 JP) has disclosed a revised IPO price range of JPY1,100-1,300 per share, which is -32% to -20% below the IPO reference price of JPY1,620 per share.
- We previously discussed the IPO in TRYT IPO: The Bull Case, TRYT IPO: The Bear Case and TRYT IPO: Valuation Insights.
- Our analysis suggests that Tryt remains unattractively valued at the revised IPO price range. Also, market sentiment on the sector has weakened. We would pass on the IPO.
Zhejiang Yongtai Technology GDR Listing – Discount Wider than Recent Deals & Inline with Average
- Zhejiang Yongtai Tech A (002326 CH) is looking to raise US$107m in its London GDR listing. Huatai is the sole bookrunner on the deal.
- The firm is offering 11.4m GDRs (1 GDR to 5 ordinary A-shares) for sale, at a fixed 12.7% discount to last close on its A-share leg.
- The deal is a relatively small one for the firm to digest, representing just 3.9 days of three month ADV on its A-share leg.
Lalatech Holdings Limited Pre-IPO – Thoughts on Valuation – Needs a Very Big Cut from Pre-IPO Rounds
- Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO.
- Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.
- We have looked at the company’s past performance and peer comparison in our earlier notes. In this note we will talk about valuations.
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