In today’s briefing:
- S&P/ASX Index Rebalance Preview (March 2022): A Busy Rebalance Across Indices
- 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)
S&P/ASX Index Rebalance Preview (March 2022): A Busy Rebalance Across Indices
- There are just 3 trading days to go in the review period for the March rebalance of the S&P/ASX family of indices. There will be plenty of changes.
- We see one change for the ASX20, one change for the ASX50, up to four changes for the ASX200 and up to 15 adds/11 deletes for the ASX300.
- There will be a large impact from passive trading on quite a few stocks. There will be same way flow on some stocks from the FTSE AW/AC trackers.
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.
Before it’s here, it’s on Smartkarma
