In today’s briefing:
- FP Partner (7388 JP) Offering-To-Get-Float-To-Get-TOPIX-Inclusion
- Integral Corporation IPO: Valuation Insights
- The Keihin Co (TYO 9312) – A Consistently Profitable and Growing Small Cap Logistics Company
FP Partner (7388 JP) Offering-To-Get-Float-To-Get-TOPIX-Inclusion
- On 22 August, TSE Growth-listed insurance agent FP Partner (7388 JP) announced a special dividend, a secondary offering of 1.4mm shares, and a move to TSE Prime.
- The equity offering is designed to raise tradable share percentage to meet the TSE Prime listing requirement. The move to Prime on 11 September means a TOPIX inclusion end October.
- The pattern of “Offering To Get Float to Get TOPIX Inclusion” is well-trod. This one has some interesting dynamics.
Integral Corporation IPO: Valuation Insights
- Integral Corporation (5842 JP) is an independent Japanese private equity firm seeking to raise about US$174 million. The pricing is on 4 September, and the listing is on 20 September.
- We previously discussed the IPO in Integral Corporation IPO: The Bull Case and Integral Corporation IPO: The Bear Case.
- In this note, we discuss forecasts and valuation. Our analysis suggests that the indicative IPO price range of JPY2,800-3,400 per share is unattractive. We would give the IPO a pass.
The Keihin Co (TYO 9312) – A Consistently Profitable and Growing Small Cap Logistics Company
The Keihin Co is a ¥10.94B ($74.7m) market cap logistics company in Japan that owns and operates warehouses and distribution facilities mostly in and around Tokyo.
They’ve been profitable for 19 of the last 20 years and have compounded tangible book value at 6.5% over the last decade while growing profits.
Stock has gone nowhere over the last decade despite compounding tangible book value and net income at a respectable clip.
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