Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<div>
<p>Coupang, one of the largest e-commerce players in Korea, was listed on 11th Mar 2021 when it raised around US$4.5bn via selling a mix of primary and secondary shares in its US IPO.</p>
<p>In this note, we'll talk about the upcoming lock-up expiry.</p>
<p>We've covered various aspects of the deal in our earlier insights: </p>
</div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-positives-fast-growth-sticky-customers" target="_blank" rel="noopener">Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers</a>, </li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-the-negatives-horrendous-data-disclosures-including-no-mention-of-ott-launch" target="_blank" rel="noopener">Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-fair-bit-of-competition-but-it-s-doing-better-than-most-local-peers" target="_blank" rel="noopener">Coupang Pre-IPO - Fair Bit of Competition but It’s Doing Better than Most Local Peers</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-pre-ipo-earnings-forecast-and-valuation" target="_blank" rel="noopener">Coupang Pre-IPO - Earnings Forecast and Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-ipo-momentum-play-unequal-lock-up-index-inclusion" target="_blank" rel="noopener">Coupang IPO - Momentum Play, Unequal Lock-Up, Index Inclusion</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-ipo-quick-note-peers-move-down-range-moves-up-ripe-for-trading" target="_blank" rel="noopener">Coupang IPO - Quick Note - Peers Move Down, Range Moves Up. Ripe for Trading.</a></li>
<li><a href="https://www.smartkarma.com/insights/coupang-ipo-trading-most-hit-near-term-peak-on-the-first-day-key-trading-lock-up-dates" target="_blank" rel="noopener">Coupang IPO Trading - Most Hit near Term Peak on the First Day - Key Trading/​Lock-Up Dates</a></li>
</ul></div>


Coupang, one of the largest e-commerce players in Korea, was listed on 11th Mar 2021 when it raised around US$4.5bn via selling a mix of primary and secondary shares in its US IPO.
In this note, we'll talk about the upcoming lock-up expiry.
We've covered various aspects of the deal in our earlier insights: 


Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers, 
Coupang Pre-IPO - The Negatives - Horrendous Data Disclosures, Including No Mention of OTT Launch
Coupang Pre-IPO - Fair Bit of Competition but It’s Doing Better than Most Local Peers
Coupang Pre-IPO - Earnings Forecast and Valuation
Coupang IPO - Momentum Play, Unequal Lock-Up, Index Inclusion
Coupang IPO - Quick Note - Peers Move Down, Range Moves Up. Ripe for Trading.
Coupang IPO Trading - Most Hit near Term Peak on the First Day - Key Trading/​Lock-Up Dates


Coupang Lock-Up Expiry - Failed to Meet Multiple Lock-Up Exits; Now Hitting the US$7bn Expiry

<div><p>Kakao Bank (KB), South Korea’s largest digital bank, raised US$2.2bn in its South Korean IPO. It ended the first day of trading up 79% from its IPO price. </p></div><div>We have covered various aspects of the deal in our previous notes:</div><div><ul>
<li>
<a href="https://www.smartkarma.com/insights/kakao-bank-ipo-riding-on-parent-s-network-but-boundaries-with-kakao-pay-remain-unclear" target="_blank" rel="noopener">Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear</a>, </li>
<li><a href="https://www.smartkarma.com/insights/kakao-bank-ipo-pricey-as-it-should-be" target="_blank" rel="noopener">Kakao Bank IPO - Pricey as It Should Be</a></li>
<li><a href="https://www.smartkarma.com/insights/kakao-bank-ipo-lack-of-lock-up-and-msci-ftse-index-implications" target="_blank" rel="noopener">Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications, and</a></li>
<li><a href="https://www.smartkarma.com/insights/kakao-bank-ipo-trading-one-for-instis-closer-look-at-ftse-and-msci-inclusion-remain-buyers" target="_blank" rel="noopener">Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers</a></li>
</ul></div><div><p>In this note, we will talk about the first day trading and index inclusion.</p></div>

Kakao Bank (KB), South Korea’s largest digital bank, raised US$2.2bn in its South Korean IPO. It ended the first day of trading up 79% from its IPO price. We have covered various aspects of the deal in our previous notes:

Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear, 
Kakao Bank IPO - Pricey as It Should Be
Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications, and
Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers
In this note, we will talk about the first day trading and index inclusion.

Kakao Bank - MSCI Done, Missed FTSE by a Whisker.

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.

Equity Capital Markets

<p>Kakao Bank's listing-day performance certainly exceeds expectations.</p><p>The opening price has risen by 38% compared to the offering price, and today's high was ₩68,000, and it currently settles at ₩63,100. This is a 60% increase from the offering price, and the market cap reaches ₩30T.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Bank today"}'>Kakao Bank today</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Market cap"}'>Market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"From the offering price"}'>From the offering price</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering price"}'>Offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":39000}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩39,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18.528909243}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩18.53T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Opening price"}'>Opening price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":53700}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩53,700</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":25.5128827269}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩25.51T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3769230769230769}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">37.69%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily high"}'>Daily high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":68000}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩68,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":32.306816116}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩32.31T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7435897435897436}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">74.36%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily low"}'>Daily low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":51000}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩51,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":24.230112087}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩24.23T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3076923076923077}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">30.77%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":63100}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩63,100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":29.9788249547}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩29.98T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.617948717948718}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">61.79%</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>As a result, Kakao Bank has easily surpassed its direct competitors, KB Financial and Shinhan Financial, in market capitalization and is currently ranked 12th in the KOSPI by market capitalization.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":2,"2":"KOSPI top 15"}'>KOSPI top 15</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":2,"2":"Market cap"}'>Market cap</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":1}'>1</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005930"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005930"'>005930</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":487.731234335}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩487.73T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":2}'>2</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"SK Hynix Inc"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK Hynix</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"000660"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="000660"'>000660</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":85.90427907}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩85.90T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":3}'>3</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Naver Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Naver</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"035420"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="035420"'>035420</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":72.60442059}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩72.60T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":4}'>4</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Kakao Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Kakao</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"035720"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="035720"'>035720</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":64.89119358}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩64.89T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":5}'>5</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd Preference Shares Non Voting"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics 1P</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005935"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005935"'>005935</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":61.55192516}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩61.55T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":6}'>6</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung Biologics Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Biologics</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"207940"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="207940"'>207940</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":60.8718}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩60.87T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":7}'>7</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"LG Chem Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>LG Chem</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"051910"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="051910"'>051910</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":59.791714521}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩59.79T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":8}'>8</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung SDI</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"006400"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="006400"'>006400</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":53.36127528}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩53.36T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":9}'>9</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Hyundai Motor Co"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyundai Motor</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005380"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005380"'>005380</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":47.648005701}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩47.65T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":10}'>10</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Celltrion, Inc."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Celltrion</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"068270"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="068270"'>068270</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":33.438886896}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩33.44T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":11}'>11</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Kia Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Kia</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"000270"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="000270"'>000270</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":34.6991025032}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩34.70T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":12}'><strong>12</strong></td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Kakao Bank"}'><strong>Kakao Bank</strong></td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"323410"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="323410"'><strong>323410</strong></td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":29.9788249547}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[-15]C[-1]"><strong>₩29.98T</strong></td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":13}'>13</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"POSCO"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>POSCO</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005490"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005490"'>005490</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":29.9486778225}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩29.95T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":14}'>14</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung C&amp;T</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"028260"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="028260"'>028260</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":26.911739664}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩26.91T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":15}'>15</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyundai Mobis</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"012330"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="012330"'>012330</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":26.257687038}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩26.26T</td>
</tr>
<tr><td colspan="4" rowspan="1" style="width: 708.21px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><h2><strong>Strong foreign buying this morning</strong></h2><div class="content-highlight"><ul>
<li><strong>Kakao Bank's share price fell below the opening price early this morning, raising some concerns. However, a strong buying from investors presumed to be foreign institutions came in rapidly through the foreign brokerage counter, mainly Credit Suisse.</strong></li>
<li><strong>As of 11:30 a.m., a purchase order of 6 million shares came in through the CS counter. This is 15% of the total purchase volume, which is an unusually large amount brokered by a foreign brokerage for local stocks any given day.</strong></li>
<li><strong>Therefore, the proportion of net buying by foreign investors is currently overwhelmingly high.</strong></li>
</ul></div>

Kakao Bank's listing-day performance certainly exceeds expectations.The opening price has risen by 38% compared to the offering price, and today's high was ₩68,000, and it currently settles at ₩63,100. This is a 60% increase from the offering price, and the market cap reaches ₩30T.








Kakao Bank today
Price
Market cap
From the offering price


Offering price
₩39,000
₩18.53T
-


Opening price
₩53,700
₩25.51T
37.69%


Daily high
₩68,000
₩32.31T
74.36%


Daily low
₩51,000
₩24.23T
30.77%


Current
₩63,100
₩29.98T
61.79%

Source: KRX

As a result, Kakao Bank has easily surpassed its direct competitors, KB Financial and Shinhan Financial, in market capitalization and is currently ranked 12th in the KOSPI by market capitalization.








KOSPI top 15
Name
Ticker
Market cap


1
Samsung Electronics
005930
₩487.73T


2
SK Hynix
000660
₩85.90T


3
Naver
035420
₩72.60T


4
Kakao
035720
₩64.89T


5
Samsung Electronics 1P
005935
₩61.55T


6
Samsung Biologics
207940
₩60.87T


7
LG Chem
051910
₩59.79T


8
Samsung SDI
006400
₩53.36T


9
Hyundai Motor
005380
₩47.65T


10
Celltrion
068270
₩33.44T


11
Kia
000270
₩34.70T


12
Kakao Bank
323410
₩29.98T


13
POSCO
005490
₩29.95T


14
Samsung C&amp;T
028260
₩26.91T


15
Hyundai Mobis
012330
₩26.26T

Source: KRX

Strong foreign buying this morning
Kakao Bank's share price fell below the opening price early this morning, raising some concerns. However, a strong buying from investors presumed to be foreign institutions came in rapidly through the foreign brokerage counter, mainly Credit Suisse.
As of 11:30 a.m., a purchase order of 6 million shares came in through the CS counter. This is 15% of the total purchase volume, which is an unusually large amount brokered by a foreign brokerage for local stocks any given day.
Therefore, the proportion of net buying by foreign investors is currently overwhelmingly high.


Kakao Bank, Apparently Passive Money Flowing in This Morning

<div><p>Kakao Bank (KB), South Korea’s largest digital bank, raised up to US$2.2bn in its South Korean IPO. Kakao will hold a 27.26% stake post listing. The share will begin to trade on 6th Aug 2021.</p></div><div><p>Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea. KB’s loans have grown by 138% over 2018 to 1Q21 to reach KRW21.6tn, while its deposits have grown by 197% over the same period to reach KRW24.2tn. </p></div><div><p>Over 2018-20, its total income (Net interest income plus net fee income) grew by 216%, while it went from booking a loss in 2018 to reporting a 26% profit margin by 2020. KB’s total income was up another 60% YoY in 1Q21, while PAT was up 153% YoY.</p></div><div><p>We have covered various aspects of the deal in our previous notes, <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-riding-on-parent-s-network-but-boundaries-with-kakao-pay-remain-unclear" target="_blank" rel="noopener">Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear</a>, <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-pricey-as-it-should-be" target="_blank" rel="noopener">Kakao Bank IPO - Pricey as It Should Be </a>and <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-lack-of-lock-up-and-msci-ftse-index-implications" target="_blank" rel="noopener">Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications</a>.</p></div><div><p>In this note, we will talk about the deal's trading dynamics.</p></div>

Kakao Bank (KB), South Korea’s largest digital bank, raised up to US$2.2bn in its South Korean IPO. Kakao will hold a 27.26% stake post listing. The share will begin to trade on 6th Aug 2021.Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea. KB’s loans have grown by 138% over 2018 to 1Q21 to reach KRW21.6tn, while its deposits have grown by 197% over the same period to reach KRW24.2tn. Over 2018-20, its total income (Net interest income plus net fee income) grew by 216%, while it went from booking a loss in 2018 to reporting a 26% profit margin by 2020. KB’s total income was up another 60% YoY in 1Q21, while PAT was up 153% YoY.We have covered various aspects of the deal in our previous notes, Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear, Kakao Bank IPO - Pricey as It Should Be and Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications.In this note, we will talk about the deal's trading dynamics.

Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers

AllocationAll the allocation results for the Kakao Bank IPO are now available at DART. Institutional investors took 55% of the total offering, and retail took 25.5%, receiving the forfeited shares from the ESOP subscriptions.
Almost all institutional allocations have gone to local publicly raised funds and pensions known for their long-term holding tendencies. Yes, as expected, those presumably long-term foreign funds also took a substantial portion, which Kakao Bank needs to boost the foreign ownership percentage, often interpreted as a symbolic indicator of popularity.









Allocation by type
Allocated, % of the offering
Final, % of the offering
Final, % of post-IPO SO


Institutional
55.00%
55.00%
7.58%


1. Local publicly raised funds
-
16.00%
2.21%


2. Local Br/IA
-
1.02%
0.14%


3. Local pension, etc.
-
9.83%
1.36%


4. Local others
-
0.61%
0.08%


5. Foreign
-
27.53%
3.80%


6. Foreign, other
-
0.00%
0.00%


Retail
25.00%
25.50%
3.51%


ESOP
20.00%
19.50%
2.68%


Total
100.00%
100.00%
13.78%

Source: DART



Below is the classification of institutional investors as defined in KRX statistics.






By investor type

1. Local publicly raised funds

Long-term


2. Local brokerages/investment advisories

Short-term


3. Local pensions, funds managing proprietary assets, banks, and insurance companies
Long-term


4. Local others: discretionary investment companies, savings banks, real estate trust companies, capital companies, and leasing companies
Mainly, short-term


5. Foreign institutional investors with a transaction record: foreign IPO/hedge funds

Depends


6. Foreign institutional investors without transaction record: local hot money

Mostly, short-term

Source: DART




Lockups
Institutional allocations without lockup account for only 40%. Most of the shares allocated to local publicly raised funds and pensions are locked up for 3-6 months. Foreign funds also locked up about 25% of their allocated shares, which is much higher than usual.
The initial expectation was to take the lockup weight to a minimum considering the immediate float, but it turns out that Kakao Bank has aggressively locked up than originally expected.















Lockups by institution type
1. Local PO
2. Local Br/IA
3. Local pension, etc.
4. Local others
5. Foreign
6. Foreign, other
Total


6 months
13.02%
0.25%
14.84%
0.29%
8.42%
0.00%
36.81%


3 months
9.63%
0.62%
1.86%
0.29%
1.67%
0.00%
14.07%


1 month
4.13%
0.23%
0.59%
0.17%
3.61%
0.00%
8.72%


15 days
0.17%
0.04%
0.01%
0.00%
0.00%
0.00%
0.22%


No lockup
2.15%
0.71%
0.58%
0.37%
36.36%
0.00%
40.18%


Total
29.10%
1.85%
17.88%
1.12%
50.06%
0.00%
100.00%

Source: DART


The amount released to the market immediately after the listing is 22.55% of the total number of outstanding shares. This includes pre-IPO minority shareholders (mostly VC and corporate), which account for 15.99%.












Post-IPO lockup releases, as a % of SO
IPO shareholders
Major shareholder
ESOP
VC/corporate stakeholders
Other pre-IPO minority shareholders (mostly VC/corporate)
Total


1 year
0.00%
0.00%
2.68%
0.00%
0.00%
2.68%


6 months
2.79%
27.26%
0.00%
39.76%
0.00%
69.81%


3 months
1.07%
0.00%
0.00%
3.20%
0.00%
4.27%


1 month
0.66%
0.00%
0.00%
0.00%
0.00%
0.66%


15 days
0.02%
0.00%
0.00%
0.00%
0.00%
0.02%


Lock-up
4.54%
27.26%
2.68%
42.96%
0.00%
77.44%


No lock-up
6.56%
0.00%
0.00%
0.00%
15.99%
22.55%

Source: DART





Kakao Bank: Full Allocation Results, Index Floats, & Fast Entry Possibilities

South Korea

Kakao Corp. provides Internet portal services such as news, free e-mail, and leisure information.  The Company also offers cross-platform mobile messaging application that allows users to exchange messages.

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Kakao Corp (035720 KS)

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