In today’s briefing:
- Invincible Investment Corp Placement – Decent Accretion Despite the Large Dilution
- Money Forward: Non-BO Margin on a Decline and Upcoming Fee Revision to Have Negative Impact
- The Format of the AGM Also Reveals a Part of the Company’s Attitude Toward Its Shareholders
- Rakuten Securities IPO Early Look – The Negatives – Growth Has Slowed Down
Invincible Investment Corp Placement – Decent Accretion Despite the Large Dilution
- Invincible Investment (8963 JP) plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.
- The stock has done well over the past year and so have most of its deals which we have covered in the past.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Money Forward: Non-BO Margin on a Decline and Upcoming Fee Revision to Have Negative Impact
- Money Forward (3994 JP) reported 2QFY11/2023 results yesterday. Revenue increased 43.5% YoY to ¥7.3bn (vs consensus ¥7.18bn) while operating losses dropped to ¥1.58bn vs ¥2.15bn in 2QFY11/22 (vs consensus ¥1.65bn).
- 2Q revenues were within its guidance of ¥7.1-7.4bn and MF has revised its FY11/23E guidance upward based on the progress made during the first half of the year.
- MF’s non-BO business margins continue to decline, and the plan to revise price plans for sole proprietors in December should result in attrition and further increase in advertising spend.
The Format of the AGM Also Reveals a Part of the Company’s Attitude Toward Its Shareholders
- Even if attendance increases somewhat since 92.1% of AGMs in 2022 had less than 100 attendees, the reluctance to hold an online voting AGM due to technical issues isn’t reasonable.
- With 84.8% of companies having Q&A sessions lasting less than 30 minutes, many companies want to end their Q&A sessions in as short a time as possible.
- Companies that want to keep Q&A sessions short tend to hold hybrid on-site and online sessions that can prioritize questions from on-site attendees and limit questions from online participants.
Rakuten Securities IPO Early Look – The Negatives – Growth Has Slowed Down
- Rakuten Securities, the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
- It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
- In this note, we talk about the not-so-positive aspects of the deal.
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