In today’s briefing:
- Rakuten Securities IPO: Promising Business with Valuation Caveats
- Lead Shorts, Where to Cover and Re Set Longs.
- TRYT IPO: Peer Comparison and Valuation
Rakuten Securities IPO: Promising Business with Valuation Caveats
- Yesterday, Rakuten Group (4755 JP) announced that its consolidated subsidiary, Rakuten Securities, has applied for a listing on the Tokyo Stock Exchange.
- Rakuten Securities has long-term growth potential through leveraging Rakuten’s ecosystem for steady securities account growth and exploring cross-selling opportunities for related services.
- While the business seems promising, there may be concerns regarding its valuation, given its previous high trailing PE of 43.0x.
Lead Shorts, Where to Cover and Re Set Longs.
- Update on our top shorts as we get closer to our cover targets with some overlap.
- SPX and NDX secondary short cover levels and where to add back to longs.
- Minor new chart highs in store into mid-July with target adjustments.
TRYT IPO: Peer Comparison and Valuation
- TRYT Group is engaged in job placement and temporary staffing, specialising in the medical and welfare and construction fields. The company has set the pricing for its Tokyo IPO.
- Existing shareholders of the company will offer 40m shares at an indicative price range of ¥1,100-1,300 per share, raising around US$305-360m from the IPO.
- We think Tryt Inc (9164 JP) ’s IPO is overvalued at the above price range compared to Japanese recruitment peers and would recommend staying on the sidelines.
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