In today’s briefing:
- JFE Holdings (5411) – Volume Patterns Indicate Possible Squeeziness
- I-Ne (4933) Offering Priced, Now to a TOPIX Inclusion
- TOPIX Inclusions: Who Is Ready (Sep 2023)
- Yaizu Suidankagaku (2812) | An Odorous Deal
- Diversity Will Work when % of Women and Foreign Directors Exceeds 50%, but It’s Still a Long Way Off
- Daiichi Kigenso Kagaku-Kogyo (4082) – Niche Global Leader Aiming for Long-Term Sustainable Growth
JFE Holdings (5411) – Volume Patterns Indicate Possible Squeeziness
- On 5 September, JFE Holdings (5411 JP) saw an article out of a capital raising. It was confirmed later in the day. Huge volumes traded. The stock fell sharply.
- The offering supply/demand dynamics are…. complicated. The offering is to foreign instos. The net demand is probably mostly retail and index, and positioning is… also complicated.
- The EPS dilution is already accounted for. The fall against Nippon Steel pretty much does it after considering the discount expected.
I-Ne (4933) Offering Priced, Now to a TOPIX Inclusion
- Skincare/Cosmetics company I-NE (4933 JP) on 31 August (¥2947) announced it would move to TSE Prime on 19 September, and announced a Secondary Offering by CEO Onishi-san to get there.
- There was no greenshoe provided. The stock popped. Then drifted back to ¥3025 and the Offering priced today at ¥2,934/share.
- 75% went to Asian/European (non-US) offshore investors, and the rest to onshore institutions, which is unusual. But now we look to the TOPIX inclusion.
TOPIX Inclusions: Who Is Ready (Sep 2023)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- Since my last insight, three new TOPIX Inclusion events have been confirmed: M&A Research Institute (9552 JP), FP Partner (7388 JP), and I-NE (4933 JP)
- Separately, Core Concept Technologies Inc (4371 JP) has announced it intends to work towards a Prime Market move in the future.
Yaizu Suidankagaku (2812) | An Odorous Deal
- The Board of YSK has recommended that shareholders accept a TOB for the company’s shares
- Although a 35% premium to the undisturbed share price, the deal is not particularly generous to long-suffering shareholders
- Activist investor, Minami Aoyama, has been buying a significant stake in YSK. Will the deal go through?
Diversity Will Work when % of Women and Foreign Directors Exceeds 50%, but It’s Still a Long Way Off
- Since so many companies have not prepared for internal female talent, the trend of hiring female independent outside directors will continue for the foreseeable future.
- Metrical studies have confirmed the tendency for the percentage of female board members to show a more significant positive correlation than the number of female board members.
- This is consistent with the expectation that the increased weight of women board members’ voices on the board will contribute to value creation.
Daiichi Kigenso Kagaku-Kogyo (4082) – Niche Global Leader Aiming for Long-Term Sustainable Growth
- A transforming market leader – Daiichi Kigenso Kagaku-Kogyo is a global leader in manufacturing zirconium compounds, used by a wide range of industries from automotive to consumer electronics.
- The company has embarked on a transformation, identifying carbon neutrality and electrification as key structural growth themes.
- The midterm management plan targets strategic investment in semiconductors/electronics, energy, and healthcare.
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