In today’s briefing:
- Terumo (4543 JP) Secondary Offering – Smaller Than It Looks
- Terumo Placement – US$1.4bn Secondary Selldown, Buyback Should Aid Deal Dynamics
- Terumo (4543 JP): A US$1.4 Billion Secondary Offering
- Sino-American Silicon Early Look – Another Well Flagged GDR Offering in the Works
- Timee IPO: Trading Update
- Smartworks Coworking Spaces Pre-IPO Tearsheet
- Pre-IPO BrainAurora Medical Technology (PHIP Updates) – Some Points Worth the Attention
Terumo (4543 JP) Secondary Offering – Smaller Than It Looks
- On Thursday 29 August, Terumo Corp (4543 JP) announced a secondary offering where 7 major cross-holders would sell just under 5% of the shares outstanding to international investors.
- In recent quarters, Terumo has seen better consensus EPS growth than Peers in recent quarters, and Peers have underperformed. Right now, Terumo isn’t ‘cheap’ but consensus growth is strong.
- This back-end demand in this case has enough moving parts that it bears a closer look.
Terumo Placement – US$1.4bn Secondary Selldown, Buyback Should Aid Deal Dynamics
- A group of shareholders are looking to raise around US$1.36bn from selling ~5% stake in Terumo Corp (4543 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.
Terumo (4543 JP): A US$1.4 Billion Secondary Offering
- Terumo Corp (4543 JP) has announced a secondary offering of up to 73.2 million shares, worth JPY203 billion (US$1.4 billion) at the last close.
- The secondary offering facilitates the exit of large shareholders. Terumo also announced a buyback worth a maximum of JPY30 billion or 15 million shares.
- Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 10 and 12 September (likely 10 September).
Sino-American Silicon Early Look – Another Well Flagged GDR Offering in the Works
- Sino American Silicon Products (5483 TT) is looking to raise at least US$338m in its upcoming global depository receipts (GDRs) offering.
- In late Feb 2024, Sino-American Silicon (SAS) announced its board’s resolution to issue up to 55m common shares via a GDR offering.
- Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.
Timee IPO: Trading Update
- Timee began trading on 26th July and share price has surged 47% since its debut where the company priced the IPO at top of the indicative price range.
- Though Timee Inc (215A JP) is in early stages, the company has proven that its business model is successful and continue to dominate a market that is underpenetrated.
- Though we think there is further upside, if you have already bought shares at the IPO, we would suggest taking profits and wait for a dip to make a re-entry.
Smartworks Coworking Spaces Pre-IPO Tearsheet
- Smartworks Coworking Spaces Ltd (1742134D IN) is looking to raise about US$120m in its upcoming India IPO. The deal will be run by Kotak, JM Fin, IIFL and Bob Caps.
- Smartworks Coworking Spaces Limited (SCSL) is an office experience and managed campus platform.
- It focuses on leasing entire/ large, bare shell properties in prime locations from landlords and transforms them into fully serviced, aesthetically pleasing and tech-enabled campuses with daily-life and aspirational amenities.
Pre-IPO BrainAurora Medical Technology (PHIP Updates) – Some Points Worth the Attention
- If the System or this treatment method is really effective and accepted by hospitals/doctors, under the coverage of medical insurance catalog already, why BrainAurora’s revenue scale is still so small?
- CSRC questioned BrainAurora’s high selling expenses. Since either SG&A or R&D expenses already exceed revenue, BrainAurora would continue to suffer from losses. The Company hasn’t established a solid profit model.
- BrainAurora completed a total of 7 rounds of financing, with a post investment valuation of RMB2.7 billion. However, it is difficult for BrainAurora to match this high valuation after IPO.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
