IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Weekly Deals Digest (16 Feb) - Trend Micro, Zenhoren, HKBN, Fosun Tourism, Paragon REIT, CATL

Trend Micro (4704 JP): Evaluating the Privatisation Rumours

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Global Equity Research Ltd

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Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/trend-micro-inc" target="_blank" rel="noopener">Trend Micro Inc. (4704 JP)</a> shares have hit their daily trade limit, following a <a href="https://finance.yahoo.com/news/exclusive-buyout-firms-vie-cybersecurity-003204122.html" target="_blank" rel="noopener">Reuters report</a> that Bain, Advent, KKR, and EQT AB are potential bidders. </li>
<li>The lack of a controlling shareholder and increased cybersecurity M&amp;A activity support the buyout interest. In 4Q2024, cybersecurity M&amp;A reached the highest quarterly volume in the past three years.</li>
<li>The valuation is undemanding. If it trades in line with its median peers’ CY2024 EV/Sales and EV/EBITDA multiple, it implies JPY11,500-15,000, a 6%- 38% premium to the current price. </li>
</ul>



Trend Micro Inc. (4704 JP) shares have hit their daily trade limit, following a Reuters report that Bain, Advent, KKR, and EQT AB are potential bidders. 
The lack of a controlling shareholder and increased cybersecurity M&amp;A activity support the buyout interest. In 4Q2024, cybersecurity M&amp;A reached the highest quarterly volume in the past three years.
The valuation is undemanding. If it trades in line with its median peers’ CY2024 EV/Sales and EV/EBITDA multiple, it implies JPY11,500-15,000, a 6%- 38% premium to the current price. 


Trend Micro (4704 JP): Rumoured Buyout Interest Starting to Take Shape