In today’s briefing:
- Deciphering the Dynamics of a Tachiaigai Bunbai Offering
- SBI Sumishin Net Bank (7163 JP) IPO: Listing in March, TPX Inclusion Possibly in April
- Gungho Is Gungho for Gungho (3765 JP)
- Pan Jit Hostile/Unsolicited Partial Offer for Champion Micro (3257 TT)
- KT Corp: Announces a Spin-Off of the Cloud and IDC Business
- Aussie Pharma (API AU): Scheme Booklet Out. Meeting On The 17 March
- Potential Additions and Deletions to KOSDAQ150 Rebalance in June 2022
- SBI Sumishin NetBank (7163 JP) IPO Details, Fundamentals Tearsheet, and Likely Index Treatment
Deciphering the Dynamics of a Tachiaigai Bunbai Offering
- In Japan, there is a type of offering called a tachiaigai bunbai offering which is used by companies to conduct small, relatively low-cost, offerings to increase liquidity or shareholder breadth.
- These are conducted with a bit over a week of warning, and there are usually very low limits of shares purchasable per applicant.
- There are certain dynamics surrounding such tachiaigai bunbai which are worth understanding.
SBI Sumishin Net Bank (7163 JP) IPO: Listing in March, TPX Inclusion Possibly in April
- SBI Sumishin Net Bank (7163 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on 24 March.
- News reports indicate a raise of US$1bn (JPY 115.5bn). This translates to an IPO price of JPY 1,920/share, valuing the company at JPY 300bn (US$2.59bn).
- The stock should be added to the TPX INDEX at the close on 27 April where trackers will need to buy over 14% of the stock issued in the IPO.
Gungho Is Gungho for Gungho (3765 JP)
- Gungho on Monday announced results, with both revenues and earnings up.
- They also announced a buyback, which at current price means about 2.8% of shares out.
- That doesn’t sound like a lot, but context matters. It may matter a great deal.
Pan Jit Hostile/Unsolicited Partial Offer for Champion Micro (3257 TT)
- Pan Jit International (2481 TT) appears to have launched an unsolicited/hostile partial Tender for 5.0-30.0% of the shares out of power management IC maker Champion Microelectronic Corp (3257 TT).
- The price is near but not at a medium-term (and all-time) high, and is made “for investment purposes but hoping for more.”
- Insiders officially hold ~13.7% of the target. It would seem done, which means a defence effort and/or white knight is not out of the question. We will watch it develop.
KT Corp: Announces a Spin-Off of the Cloud and IDC Business
- On 15 February, KT Corp (030200 KS) announced that it will spin off the cloud and IDC business.
- KT will spin off the cloud and internet data center (IDC) business to set up subsidiary tentatively named KT Cloud starting 1 April.
- KT’s valuations remain attractive and the spin-off of KT Cloud Business is also likely to aid on the continued outperformance of KT shares in the coming months.
Aussie Pharma (API AU): Scheme Booklet Out. Meeting On The 17 March
- Australian Pharmaceutical Industries (API AU)‘s Scheme Booklet is now out. The Scheme Meeting will be held on the 17 March with possible implementation on the 31 March.
- The Independent Expert has concluded this US$600mn Offer is fair and reasonable and in the best interest of Senex shareholders.
- The Offer price is full. And trading very tight to terms.
Potential Additions and Deletions to KOSDAQ150 Rebalance in June 2022
- In this insight, we discuss the potential additions and deletions in the upcoming June 2022 KOSDAQ150 rebalance.
- The top 10 potential inclusions of KOSDAQ150 are on average down 2.8% YTD, outperforming KOSDAQ which is down 15.1% YTD.
- The top 10 potential exclusions of KOSDAQ150 are down on average 21.6% YTD, underperforming KOSDAQ which is down 15.1% in the same period.
SBI Sumishin NetBank (7163 JP) IPO Details, Fundamentals Tearsheet, and Likely Index Treatment
- On 15 February, SBI Holdings (8473 JP) and Sumitomo Mitsui Trust Holdings (8309 JP) announced the likely details/schedule of the IPO of their joint venture online bank.
- Pre-Announcement media commentary had suggested an IPO of US$1bn in size and a potential market cap in the range of ¥300-400bn.
- The stock is likely to see significant interest because of its growthy business model, and non-negligible index buying at end-March and end-April, especially if it prices at the high end.
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