In today’s briefing:
- NRI (4307) Likely Prices Today – Expect Weakness Then Strength
- Daiei Kankyo (9336): TSE Prime IPO and Index Demand
NRI (4307) Likely Prices Today – Expect Weakness Then Strength
- On 25 November Nomura Research Institute Ltd (4307 JP) announced that Jafco Co Ltd (8595 JP) and Nomura Holdings (8604 JP) would conduct a Secondary Offering of NRI Shares.
- The sale is 36.97mm shares plus a greenshoe. It’s a big deal ($1bn) including greenshoe after JPY has just strengthened, but underperformance both before and after announcement sets up well.
- Expect weakness today, but the stock is now at a two-year low, and the PER multiple premium is now at the lowest 3mo average premium in 5yrs. Expect retail buying.
Daiei Kankyo (9336): TSE Prime IPO and Index Demand
- Daiei Kankyo (9336 JP) – designer, builder, operator/maintainer of waste management/recycling, soil purification, waste-to-energy, and similar infrastructure – will IPO on the TSE Prime market on 14 December.
- The business is somewhat unexciting, but likely a non-growing, non-shrinking business which could roll up others.
- The TSE Prime listing will mean it will have a TOPIX Inclusion at the end of January.
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