In today’s briefing:
- SBI Sumishin NetBank (7163 JP) Re-IPO Details, Fundamentals Tearsheet, Likely Index Treatment
- SHL-Japan (4327 JP): JPY3,550 Tender Offer from SHL Group
- SBI Sumishin Net Bank Pre-IPO – Refiling Updates – Growth Picks Up
- Is the Challenge of Raising the Stock Price Valuations Ultimately the Quality of Management?
SBI Sumishin NetBank (7163 JP) Re-IPO Details, Fundamentals Tearsheet, Likely Index Treatment
- In February 2022, SBI Holdings (8473 JP) and Sumitomo Mitsui Trust Holdings (8309 JP) announced they would IPO SBI Sumishin Net Bank (7163 JP) but that got cancelled by Ukraine.
- Yesterday, they announced they were going to try again. This time, with a reduced price and reduced aspirations. Given the way banks have performed in the last year… 👀
- That changes – completely – the picture of index demand. But it also changes the fundamental picture.
SHL-Japan (4327 JP): JPY3,550 Tender Offer from SHL Group
- SHL Japan Ltd (4327 JP) has recommended SHL Group’s tender offer of JPY3,550 per share, a 32.2% premium to the undisturbed price (1 March).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 36.62% ownership ratio.
- Achieving the minimum 36.62% ownership ratio requires a 32% acceptance rate from minorities excluding irrevocables. This is not onerous as the tender price represents an all-time share price.
SBI Sumishin Net Bank Pre-IPO – Refiling Updates – Growth Picks Up
- SBI Sumishin Net Bank (SSNB) is now looking to raise around US$380m in its second listing attempt.
- SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
- In this note, we talk about the updates from the latest filings.
Is the Challenge of Raising the Stock Price Valuations Ultimately the Quality of Management?
- Increasing numbers of companies with P/Bs below 1x suggest that they failed to deliver to investors plan that would have increased their corporate value, or that such plan didn’t materialize.
- While P/B has remained mostly in range, the increase in the number of companies with low P/Bs can be attributed to the widening gap in profitability among companies.
- If the difference in profitability depends on the development and execution of management strategies, it depends on the quality of management. The appointment of directors will be very important.
💡 Before it’s here, it’s on Smartkarma
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