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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wcp-co-ltd" target="_blank" data-smartkarma-citation="entities:36076:1" rel="noopener">WCP (WCP KS)</a>, a lithium-ion batteries separator company, has released an updated prospectus for its IPO of KRW900 billion (US$692 million).  </li>
<li>The updated prospectus discloses 1H22 results and a marginal increase in the syndicate’s intrinsic value. Revenue growth and margin improved in 1Q22. </li>
<li>The IPO price range of KRW80,000-100,000 remains unchanged. While the fundamentals are sound, the IPO price range remains unattractive.</li>
</ul>



WCP (WCP KS), a lithium-ion batteries separator company, has released an updated prospectus for its IPO of KRW900 billion (US$692 million).  
The updated prospectus discloses 1H22 results and a marginal increase in the syndicate’s intrinsic value. Revenue growth and margin improved in 1Q22. 
The IPO price range of KRW80,000-100,000 remains unchanged. While the fundamentals are sound, the IPO price range remains unattractive.


WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>On 4 August (after market close), it was reported that Foosung Co plans to IPO its subsidiary Foosung Global. The timing is to complete the IPO in 2023. </li>
<li>After this news came out, Foosung's share price has declined by 17%. Since its share price peak in May 2022, its share price has declined by 42%. </li>
<li>Recent share price decline has presented a more attractive investment opportunity.  Foosung is currently trading at EV/EBITDA multiple of 7.7x in 2022, which is much lower than 20.9x in 2021.</li>
</ul>


On 4 August (after market close), it was reported that Foosung Co plans to IPO its subsidiary Foosung Global. The timing is to complete the IPO in 2023. 
After this news came out, Foosung's share price has declined by 17%. Since its share price peak in May 2022, its share price has declined by 42%. 
Recent share price decline has presented a more attractive investment opportunity.  Foosung is currently trading at EV/EBITDA multiple of 7.7x in 2022, which is much lower than 20.9x in 2021.


Foosung: Excessive Decline in Share Price Due to Spin-Off & IPO of Its Foosung Global Subsidiary

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wcp-co-ltd" target="_blank" data-smartkarma-citation="entities:36076:1" rel="noopener">WCP (WCP KS)</a>, a lithium-ion batteries separator company, has pushed back its KRW900 billion (US$692 million) KRX IPO timeline from August to mid-September.</li>
<li>We previously discussed the IPO In <a href="https://www.smartkarma.com/insights/wcp-ipo-hooked-on-lithium" target="_blank" data-smartkarma-citation="insights:72863" rel="noopener">WCP IPO: Hooked on Lithium</a> and <a href="https://www.smartkarma.com/insights/wcp-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:73042" rel="noopener">WCP IPO: Valuation Insights</a>. </li>
<li>In this note, we benchmark WCP vs its peers in terms of historical and forecasted financials along with multiples. Our valuation analysis suggests that the IPO price range remains unattractive.</li>
</ul>



WCP (WCP KS), a lithium-ion batteries separator company, has pushed back its KRW900 billion (US$692 million) KRX IPO timeline from August to mid-September.
We previously discussed the IPO In WCP IPO: Hooked on Lithium and WCP IPO: Valuation Insights. 
In this note, we benchmark WCP vs its peers in terms of historical and forecasted financials along with multiples. Our valuation analysis suggests that the IPO price range remains unattractive.


WCP IPO: Kicking the Can Down the Road Through a Revised IPO Timetable

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wcp-co-ltd" target="_blank" data-smartkarma-citation="entities:36076:1" rel="noopener">WCP (WCP KS)</a>, a lithium-ion batteries separator company, is planning to launch a KRW900 billion (US$692 million) IPO in August.</li>
<li>In <a href="https://www.smartkarma.com/insights/wcp-ipo-hooked-on-lithium" target="_blank" data-smartkarma-citation="insights:72863" rel="noopener">WCP IPO: Hooked on Lithium</a> we noted that WCP has attractive fundamentals due to the favourable demand/supply balance, technology, strong revenue growth and improving margins. </li>
<li>In this note, we look at the syndicate's valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive and we would pass on the IPO.</li>
</ul>



WCP (WCP KS), a lithium-ion batteries separator company, is planning to launch a KRW900 billion (US$692 million) IPO in August.
In WCP IPO: Hooked on Lithium we noted that WCP has attractive fundamentals due to the favourable demand/supply balance, technology, strong revenue growth and improving margins. 
In this note, we look at the syndicate's valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive and we would pass on the IPO.


<ul>
<li>Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. </li>
<li>It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.</li>
<li>The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.</li>
</ul>


Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. 
It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.
The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.


South Korea

Chunbo Co.,Ltd manufactures and sells chemical materials. The Company produces and sells display, semiconductor, and secondary battery application materials, as well as pharmaceutical intermediates and specialty chemicals. Chunbo markets its products worldwide.

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Chunbo (278280 KS)

WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range

The updated prospectus discloses 1H22 results but an unchanged IPO price range of KRW80,000-100,000. While the fundamentals are sound, the IPO...

Arun George

WCP IPO: Kicking the Can Down the Road Through a Revised IPO Timetable

We benchmark WCP vs its peers in terms of historical and forecasted financials along with multiples. Our valuation analysis suggests that the IPO...

Arun George

WCP IPO: Valuation Insights

WCP aims to launch a KRW900 billion (US$692 million) IPO in August. Our valuation analysis suggests that the IPO price range is unattractive and we...

Arun George

Sungeel HiTech IPO Preview

Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery...

Douglas Kim

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WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range

The updated prospectus discloses 1H22 results but an unchanged IPO price range of KRW80,000-100,000. While the fundamentals are sound, the IPO...

Arun George

Foosung: Excessive Decline in Share Price Due to Spin-Off & IPO of Its Foosung Global Subsidiary

On 4 August (after market close), it was reported that Foosung Co plans to IPO its subsidiary Foosung Global. Recent share price decline has...

Douglas Kim

WCP IPO: Kicking the Can Down the Road Through a Revised IPO Timetable

We benchmark WCP vs its peers in terms of historical and forecasted financials along with multiples. Our valuation analysis suggests that the IPO...

Arun George

WCP IPO: Valuation Insights

WCP aims to launch a KRW900 billion (US$692 million) IPO in August. Our valuation analysis suggests that the IPO price range is unattractive and we...

Arun George

Sungeel HiTech IPO Preview

Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery...

Douglas Kim