In today’s briefing:
- Kokusai Elec (6525) ¥300bn+ Offering at ATH – Almost a Second IPO
- Kokusai Electric (6525 JP): Placement, Buyback & Index Flows
- Kokusai Electric (6525 JP): A US$2.0 Billion Secondary Offering
- Kokusai Electric Placement – US$1.7bn Selldown for a Good Quality Name
- Timee IPO: Strong Business Model with Improving Financials
- Creek & River (4763 JP): Q1 FY02/25 flash update
- Shift Inc (3697 JP): Q3 FY08/24 flash update
Kokusai Elec (6525) ¥300bn+ Offering at ATH – Almost a Second IPO
- Today post-close we got confirmation of yesterday’s Reuters scoop of a secondary selldown on Kokusai Electric (6525 JP) after the stock fell 7.2% in heavy volume.
- KKR HKE LP and KSP Kokusai LLC (Koch) will together sell 52.5mm shares plus another 7.8mm+ in the greenshoe. Split is 50/50 domestic/international.
- This is 60+mm shares against 51mm shares held by non-passive holders ex-Capital (who has been selling). It’s a lot of stock at a high price.
Kokusai Electric (6525 JP): Placement, Buyback & Index Flows
- KKR and KSP Kokusai will offer 52.51m-60.38m shares (US$1.76bn-2bn) of Kokusai Electric (6525 JP) in a secondary offering that will likely be priced on 22 July.
- Kokusai Electric (6525 JP) will also buy back up to JPY 18bn of its shares. At the last close, that is 3.33m shares (1.2x ADV).
- Trackers of one global index will buy stock at the time of settlement of the shares. The (much) bigger buying will come at the end of August.
Kokusai Electric (6525 JP): A US$2.0 Billion Secondary Offering
- Kokusai Electric (6525 JP) has announced a secondary offering of up to 60.4 million shares (including overallotment). At the close, the offer, including overallotment, is worth JPY326 billion (US$2.0 billion).
- The secondary offering facilitates KKR and KSP Kokusai Investments’ ability to crystallise substantial IPO gains—the shares are trading at 3.2x the IPO price of JPY1,840.
- Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 22 and 24 July (likely 22 July).
Kokusai Electric Placement – US$1.7bn Selldown for a Good Quality Name
- KKR & Co (KKR US) and KSP Kokusai Investments are looking to raise approximately US$1.7bn through an extended secondary follow-on offering, selling approximately 52.5m shares of Kokusai Electric (6525 JP)’s stock.
- The deal is a large one to digest at 19 days of three month ADV.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Timee IPO: Strong Business Model with Improving Financials
- Timee Inc (215A JP) operates an on-demand job platform in Japan and the company has filed for an IPO where existing shareholders will offer shares worth of $290m.
- The company’s top line saw accelerated growth during last 4-5 years driven by increase in no. of clients/workers while Timee also has turned around its profitability during the last 2-years.
- In this insight, we have discussed the company’s business model and financials in detail and we will discuss our forecasts and valuation in a follow-up insight.
Creek & River (4763 JP): Q1 FY02/25 flash update
- Sales increased by JPY108mn (+0.8% YoY), driven by growth in Creative (Japan), Accounting and Legal, and Other sectors.
- Operating profit decreased by JPY318mn (-20.2% YoY), mainly due to reduced profits in Creative (Japan) and Medical Staffing.
- Sales and operating profit decreased YoY due to reduced COVID-19 vaccination projects and structural reforms in Medical Principle.
Shift Inc (3697 JP): Q3 FY08/24 flash update
- In cumulative Q3 FY08/24, the company reported sales of JPY81.1bn (+28.1% YoY) and net income of JPY3.3bn (-17.2% YoY).
- Q3 GPM was 31.7%, with the Software Testing segment reporting JPY52.4bn in sales and JPY17.5bn in gross profit.
- Software Development segment sales were JPY25.7bn (+33.6% YoY), while operating profit declined due to lower utilization at subsidiaries.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
