Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

HD Hyundai Marine Solution  / Event-Driven

<ul>
<li>We discuss the end of the mandatory lock-up periods for 56 stocks in Korea in November 2024, among which six are in KOSPI and 50 are in KOSDAQ.</li>
<li>These 56 stocks on average could be subject to further selling pressures in November and could underperform relative to the market. </li>
<li>The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in November are HD Hyundai Marine Solution, Asicland, and Daemyung Energy. </li>
</ul>


We discuss the end of the mandatory lock-up periods for 56 stocks in Korea in November 2024, among which six are in KOSPI and 50 are in KOSDAQ.
These 56 stocks on average could be subject to further selling pressures in November and could underperform relative to the market. 
The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in November are HD Hyundai Marine Solution, Asicland, and Daemyung Energy. 


End of Mandatory Lock-Up Periods for 56 Companies in Korea in November 2024

Equity Capital Markets

<ul>
<li>Daemyung Energy announced its IPO book building results. The IPO price has been determined at 15,000 won, which is at the low end of the IPO price range.</li>
<li>There were 890 institutions that were involved in the IPO survey and the demand ratio was 255 to 1. The IPO offering amount is 37.5 billion won.</li>
<li>Our base case valuation of Daemyung Energy is target price of 28,784 won per share, which is 92% premium to the IPO price of 15,000 won.</li>
</ul>


Daemyung Energy announced its IPO book building results. The IPO price has been determined at 15,000 won, which is at the low end of the IPO price range.
There were 890 institutions that were involved in the IPO survey and the demand ratio was 255 to 1. The IPO offering amount is 37.5 billion won.
Our base case valuation of Daemyung Energy is target price of 28,784 won per share, which is 92% premium to the IPO price of 15,000 won.


<ul>
<li>Daemyung Energy is trying again for an IPO in Korea, after about three months delay.</li>
<li>
<strong>It has lowered the IPO price range by nearly 40%</strong> from (25,0000 won -29,000 won) to (15,000 won - 18,000 won).</li>
<li>Our base case valuation of Daemyung Energy is target price of 28,784 won per share, which is 60% upside from the high end of the IPO price range,</li>
</ul>


Daemyung Energy is trying again for an IPO in Korea, after about three months delay.

It has lowered the IPO price range by nearly 40% from (25,0000 won -29,000 won) to (15,000 won - 18,000 won).
Our base case valuation of Daemyung Energy is target price of 28,784 won per share, which is 60% upside from the high end of the IPO price range,


Daemyung Energy: Lowers IPO Price Range by 40%

<ul>
<li>Our base case valuation of Daemyung Energy is implied market cap of 624 billion won or target price of 35,003 won per share.</li>
<li>Our target price represents 21% upside from the high end of the IPO price range, suggesting a reasonable upside. Therefore, we have a positive view of this IPO. </li>
<li>Our base case valuation is based on 15.7x P/E (2022) which is based on a 30% discount to the comps' average P/E valuation multiple in 2022.</li>
</ul>


Our base case valuation of Daemyung Energy is implied market cap of 624 billion won or target price of 35,003 won per share.
Our target price represents 21% upside from the high end of the IPO price range, suggesting a reasonable upside. Therefore, we have a positive view of this IPO. 
Our base case valuation is based on 15.7x P/E (2022) which is based on a 30% discount to the comps' average P/E valuation multiple in 2022.


<ul>
<li>Daemyung Energy (DME KS) is getting ready to complete its IPO in Korea in March 2022. The IPO base deal size is from $94 million to $109 million.</li>
<li>Daemyung Energy is one of the leading renewable energy total solution providers in Korea. It provides business development to design, procurement, construction and operation management in renewable energies.</li>
<li>The bankers then applied IPO price discount range of 23% to 33.6% to derive an implied price per range of 25,000 won to 29,000 won. </li>
</ul>


Daemyung Energy (DME KS) is getting ready to complete its IPO in Korea in March 2022. The IPO base deal size is from $94 million to $109 million.
Daemyung Energy is one of the leading renewable energy total solution providers in Korea. It provides business development to design, procurement, construction and operation management in renewable energies.
The bankers then applied IPO price discount range of 23% to 33.6% to derive an implied price per range of 25,000 won to 29,000 won. 


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Daemyung Energy (DME KS)

End of Mandatory Lock-Up Periods for 56 Companies in Korea in November 2024

We discuss the end of the mandatory lock-up periods for 56 stocks in Korea in November 2024, among which six are in KOSPI and 50 are in KOSDAQ.

Douglas Kim

Daemyung Energy Bookbuilding Results

Daemyung Energy announced its IPO book building results. The IPO price has been determined at 15,000 won, which is at the low end of the IPO price...

Douglas Kim

Daemyung Energy: Lowers IPO Price Range by 40%

Daemyung Energy is trying again for an IPO in Korea, after about three months delay. It has lowered the IPO price range by nearly 40%.

Douglas Kim

Daemyung Energy IPO Valuation Analysis

Our base case valuation of Daemyung Energy is implied market cap of 624 billion won or target price of 35,003 won per share, representing a 21%...

Douglas Kim

Daemyung Energy IPO Preview

Daemyung Energy is getting ready to complete its IPO in Korea in March 2022. Daemyung Energy is one of the leading renewable energy total solution...

Douglas Kim

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