In today’s briefing:
- Rakuten Securities IPO: The Bull Case
- Federal Bank QIP – Well Flagged Deal but the Last One Didn’t Do Well
- Aon PLC: Can The New Pricing Platform Be A Game Changer? – Key Drivers
Rakuten Securities IPO: The Bull Case
- Rakuten Securities (RAKUSEC JP), a leading Japanese online brokerage, seeks to raise US$500 million. Rakuten Bank (5838 JP) (80.01%) and Mizuho Financial Group (8411 JP) (19.99%) are its shareholders.
- Rakuten Securities has grown its business by pursuing a low-cost, high-volume strategy. It has the largest number of non-consolidated securities accounts among Japanese securities companies.
- The key elements of the bull case rest on rapid customer growth, low-cost fees, market share gains, synergies with the Rakuten ecosystem and improving profitability trends.
Federal Bank QIP – Well Flagged Deal but the Last One Didn’t Do Well
- Federal Bank (FB IN) aims to raise around US$370m via a QIP to increase its Tier-1 capital.
- The deal is well flagged as the company had earlier obtained board approval for a fundraising and had guided towards a funding raising in FY24.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Aon PLC: Can The New Pricing Platform Be A Game Changer? – Key Drivers
- Aon delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.
- For the entire year 2023, as well as for the long term, Aon’s management anticipates organic revenue growth in the mid-single digits or higher.
- Aon Business Services is still a major driver of margin expansion and offers a competitive edge, particularly in an inflationary market.
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