Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

LG Energy Solution / Equity Capital Markets

<ul>
<li>Our base case valuation of LG Energy Solution is price per share of 424,093 won, which is 41% higher than the high end of the IPO price of 300,000 won.</li>
<li>Our valuation is based on 29.8x EV/EBITDA multiple times our estimated EBITDA of 3,276 billion won in 2022, resulting in EV of 97.5 trillion won.</li>
<li>Given the attractive upside, we have a positive view of the LG Energy Solution IPO.</li>
</ul>


Our base case valuation of LG Energy Solution is price per share of 424,093 won, which is 41% higher than the high end of the IPO price of 300,000 won.
Our valuation is based on 29.8x EV/EBITDA multiple times our estimated EBITDA of 3,276 billion won in 2022, resulting in EV of 97.5 trillion won.
Given the attractive upside, we have a positive view of the LG Energy Solution IPO.


LG Energy Solution IPO Valuation Analysis: An Attractive IPO with a 40%+ Upside

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Shares of SK Innovation soared more than 8% today. The reason for the surge is the expectation that SK On will be listed on the NASDAQ rather than the KOSPI.</li>
<li>The news that KRX is preparing to restrict the recently surging practice of equity carve-out (ECO)-based listing has flowed into the local market today.</li>
<li>Obviously, the market has overreacted today to SK Innovation. SK On's NASDAQ listing stems from a vague expectation. So, today's stock price surge won't lead to a structural price uptrend.</li>
</ul>


Shares of SK Innovation soared more than 8% today. The reason for the surge is the expectation that SK On will be listed on the NASDAQ rather than the KOSPI.
The news that KRX is preparing to restrict the recently surging practice of equity carve-out (ECO)-based listing has flowed into the local market today.
Obviously, the market has overreacted today to SK Innovation. SK On's NASDAQ listing stems from a vague expectation. So, today's stock price surge won't lead to a structural price uptrend.


SK Innovation's 8% Price Gain Today: SK On's NASDAQ Listing?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>In <a href="https://www.smartkarma.com/insights/lg-energy-solution-ipo-initiation-amp-my-ride" target="_blank" data-smartkarma-citation="insights:62402" rel="noopener">LG Energy Solution IPO Initiation: Amp My Ride</a>, we stated that LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). </li>
<li>In <a href="https://www.smartkarma.com/insights/lg-energy-solution-vs-catl-vs-samsung-sdi-vs-sk-innovation" target="_blank" data-smartkarma-citation="insights:62445" rel="noopener">LG Energy Solution Vs CATL Vs Samsung SDI Vs SK Innovation</a>, we benchmarked LGES and its listed battery peers across key financial metrics. </li>
<li>In this note, we look at the syndicate's valuation methodology and present our valuation methodology. Our valuation analysis suggests that the IPO price range is attractive. </li>
</ul>


In LG Energy Solution IPO Initiation: Amp My Ride, we stated that LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). 
In LG Energy Solution Vs CATL Vs Samsung SDI Vs SK Innovation, we benchmarked LGES and its listed battery peers across key financial metrics. 
In this note, we look at the syndicate's valuation methodology and present our valuation methodology. Our valuation analysis suggests that the IPO price range is attractive. 


LG Energy Solution IPO: Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> is a leading EV battery manufacturer. It is pre-marketing an IPO to raise up to $10.8 billion, which would be South Korea’s largest-ever listing.  </li>
<li>In <a href="https://www.smartkarma.com/insights/lg-energy-solution-ipo-initiation-amp-my-ride" target="_blank" data-smartkarma-citation="insights:62402" rel="noopener">LG Energy Solution IPO Initiation: Amp My Ride</a>, we stated that LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). </li>
<li>In this note, we benchmark LGES and its listed battery peers across key financial metrics.  </li>
</ul>



LG Energy Solution (LGENERGY KS) is a leading EV battery manufacturer. It is pre-marketing an IPO to raise up to $10.8 billion, which would be South Korea’s largest-ever listing.  
In LG Energy Solution IPO Initiation: Amp My Ride, we stated that LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). 
In this note, we benchmark LGES and its listed battery peers across key financial metrics.  


LG Energy Solution Vs CATL Vs Samsung SDI Vs SK Innovation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> is a leading EV battery manufacturer. It is pre-marketing an IPO to raise up to $10.8 billion, which would be South Korea’s largest-ever listing.  </li>
<li>LGES is offering 42.5 million shares with a primary/secondary split of 80/20. Pre-marketing will run until 17 December.  </li>
<li>LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). </li>
</ul>



LG Energy Solution (LGENERGY KS) is a leading EV battery manufacturer. It is pre-marketing an IPO to raise up to $10.8 billion, which would be South Korea’s largest-ever listing.  
LGES is offering 42.5 million shares with a primary/secondary split of 80/20. Pre-marketing will run until 17 December.  
LGES has attractive fundamentals with a strong backlog, healthy revenue growth and improving margins (recall provisions have peaked). 


LG Energy Solution IPO Initiation: Amp My Ride

South Korea

SK Innovation Co., Ltd. refines, markets, and distributes oil.  The Company produces a variety of petroleum products, such as gasoline, kerosene, liquefied petroleumgas (LPG), and diesel oil.  SK Energy also manufactures petrochemical p roducts, including paraxylene, synthetic resins, styrene monomer, and ethylene.

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SK Innovation (096770 KS)

LG Energy Solution IPO Valuation Analysis: An Attractive IPO with a 40%+ Upside

Our base case valuation of LG Energy Solution is price per share of 424,093 won, which is 41% higher than the high end of the IPO price of 300,000...

Douglas Kim

SK Innovation's 8% Price Gain Today: SK On's NASDAQ Listing?

The market has overreacted today to SK Innovation. SK On's NASDAQ listing is based on a vague expectation, and a structural price uptrend is...

Sanghyun Park

LG Energy Solution IPO: Valuation Insights

Our valuation analysis suggests that the IPO price range is attractive. Pre-marketing closes on 17 Dec and the international roadshow will run...

Arun George

LG Energy Solution Vs CATL Vs Samsung SDI Vs SK Innovation

LGES is pre-marketing an IPO to raise up to $10.8 billion. In this note, we benchmark LGES and its listed battery peers across key financial metrics.

Arun George

LG Energy Solution IPO Initiation: Amp My Ride

LGES is pre-marketing an IPO to raise up to $10.8 bn, potentially Korea’s largest-ever listing. It has attractive fundamentals with a strong...

Arun George

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