In today’s briefing:
- Tokyo Metro IPO: Steady Tracks with Potential for OP Growth Through Fixed Cost Savings
- ECM Weekly (7th Oct 2024) – Tokyo Metro, Rigaku, China Resources, K Bank, JD Ind, Swiggy, Lalatech
- Rigaku IPO Thoughts on Valuation – Decent Upside from the Indicative Range
Tokyo Metro IPO: Steady Tracks with Potential for OP Growth Through Fixed Cost Savings
- Tokyo Metro (9023 JP) operates 9 out of the 14 subway lines that provides essential public transportation services within the Greater Tokyo area.
- Many are unaware of Tokyo Metro’s cost savings, and we believe it could reach ¥110bn OP, exceeding the ¥100bn OP that most currently expect.
- Even without factoring in the cost savings, the indicative IPO price appears reasonably cheap, as it’s priced near the lower end of peer multiples.
ECM Weekly (7th Oct 2024) – Tokyo Metro, Rigaku, China Resources, K Bank, JD Ind, Swiggy, Lalatech
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, the roaring China/HK market led to some refilings, in what is likely to be the start of a tsunami of refilings, if the market momentum sustains.
- On the placements front, given the China/HK holidays there weren’t any deals. We instead looked at Bharti Hexacom upcoming lockup expiry.
Rigaku IPO Thoughts on Valuation – Decent Upside from the Indicative Range
- Rigaku Holdings (268A JP) is looking to raise US$762m in its Japan IPO.
- Rigaku engages in developing, manufacturing, sales and servicing scientific instruments specializing in X-ray technologies.
- In our earlier notes, we looked at the firm’s past performance and peers. In this note, we discuss our thoughts on valuation.
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