Supporting the growth of listed firms in emerging markets
Our mission is to support corporate growth by underwriting equity finance for mid-ranked listed firms and firms listing shares in emerging markets.
For the listed firms we underwrite with market capitalizations of less than 10 billion yen, raising funds through public equity offerings tends to present challenges. For this reason, they generally seek to do so by issuing new shares through third-party allotment. From our perspective, helping firms raise funds is an important role for those active in investment banking.
Supporting fair and equitable fund raising
We underwrite financing both in accordance with the rigorous and equitable rules established by the Financial Services Agency and securities exchanges, emphasizing transparency to equities markets and terms and conditions fair to investors.
Riding the current and moving with the stream of the times
Without missing out on this tidal current, Oak Capital will take on new challenges this year. Our business strategy calls for staying one step ahead and advancing three steps further.
Business rehabilitation funding for listed firms
Firms listing shares in emerging markets and small and mid-cap companies often face the need for business rehabilitation in times of lengthy economic downturns. From our perspective, one of the roles of an investment bank is to underwrite equity finance to provide funding that solidifies a company’s financial standing and rehabilitates its businesses. To date, we have been involved in numerous investments intended to advance business rehabilitation. Encountering both success and failure in these efforts, we remain committed to continuing to back business rehabilitation into the future.
Investment results and performance
We have generated results from equity finance investments in listed firms. Nevertheless, improving investment performance is not our only goal. Above all, we prioritize putting the firms in which we invest on a growth track. We believe our reputation depends both on seeing growth in the firms we invest in and improving the performance of our investments.
Diversifying investment through innovation
Our commitment to shareholders is to increase corporate value while striving to be an investment bank that continues to grow amid fluctuating financial and equities markets.
Our investment banking business to date has focused on equity finance investment in listed firms. We are currently expanding our investments to encompass businesses relatively sheltered from fluctuations in equities markets. By expanding into diverse investment fields, we seek to establish stable business foundations.
Reforming the earnings structure to increase growth potential
Our policy is to increase value for our shareholders by solidifying our makeup in the areas of growth, earnings, and stability by adding business revenues from new business investment fields to traditional capital gains from equity finance investments.
Future market outlook
The business performance of listed firms tends to be strong; growth is the norm. Corporate dividends and returns to shareholders tend to result in significant growth. With government economic stimulus measures expected to continue, this trend appears likely to continue up to the 2020 Tokyo Olympics.
Decisive action based on close monitoring of market developments
The investment business in high-risk emerging markets remains exposed to market volatility, even when economic conditions are favorable. An important management strategy is to continue to increase corporate value based on a growth strategy capable of adapting to unforeseen conditions.
Policy on returns to shareholders
We have met the targets of our management plans for the two years of 2013 and 2014. We are currently making forward-looking investments to pursue innovations, expecting a payout ratio of 13% for the year ended March 2015; our forthcoming challenge is to achieve a payout ratio of 30%.
Representative Director, Chairman & CEO