In today’s briefing:
- Tokyo Metro (9023 JP) IPO: Valuation Insights
- Aica Kogyo (4206) – Small Offering Chips Away At Cross-Holdings
- Rigaku Holdings (268A JP) IPO: The Bull Case
- K Bank IPO – Should Price Below Its Range
- Casagrand Premier Builder Pre-IPO Tearsheet
Tokyo Metro (9023 JP) IPO: Valuation Insights
- Tokyo Metro (9023 JP), a mass transit operator, is seeking to raise up to US$2.3 billion. Pricing is on 15 October, and the listing is on 23 October.
- We previously discussed the IPO in Tokyo Metro (9023 JP) IPO: The Bull Case and Tokyo Metro (9023 JP) IPO: The Bear Case.
- In this note, we discuss valuation. Our analysis suggests that Tokyo Metro is attractively valued at the IPO price compared to peer multiples.
Aica Kogyo (4206) – Small Offering Chips Away At Cross-Holdings
- On Monday, 30 September, shareholders of US$1.4bn market cap chemicals and housing materials supplier Aica Kogyo (4206 JP) announced a Secondary Share Sale. It’s small at 2% of market cap.
- The Offering is 2.1mm shares including greenshoe. The company also raised its H1 dividend guidance slightly (¥53/share to ¥56/share) and announced a buyback which should cover 57% of the offering.
- It’s a small deal. There are a lot more cross-holdings behind that but the company is cash-rich and the company is very cheap/underlevered on an LBO basis.
Rigaku Holdings (268A JP) IPO: The Bull Case
- Rigaku Holdings (268A JP) is Japan’s leading manufacturer of X-ray analysis, measurement and testing instruments. It is seeking to raise up to US$760 million.
- In Japan, Rigaku’s XRD (X-ray diffraction) has a high market share of 75%. Around 70% of its revenue is derived from customers outside Japan.
- The bull case rests on high customer switching costs, peer-leading revenue growth, top-quartile profitability, FCF generation, and low leverage.
K Bank IPO – Should Price Below Its Range
- K Bank (279570 KS) plans to raise up to US$740m in its upcoming South Korean IPO.
- K Bank is one of three Internet-only banks in Korea. It provides a full range of commercial banking products and services.
- In our previous note, we have looked at the company’s past performance and undertaken a peer comparison. In this note, we will talk about valuations.
Casagrand Premier Builder Pre-IPO Tearsheet
- Casagrand Premier Builder Ltd (0949880D IN) is looking to raise about US$131m in its upcoming India IPO. The deal will be run by JM Fin and Motilal Oswal.
- Casagrand Premier Builder is a residential developer in India. It constructs apartments and independent villas spanning luxury, mid-end and affordable categories in the states of Karnataka, Telangana and Tamil Nadu.
- According to CBRE, it was the largest residential developer in Chennai with ~24% share in terms of launches and ~20% in terms of demand during 1st Jan’17 to 31st Mar’24.
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