Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

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<p>Iljin Hysolus reduced its IPO price range. The company announced that it will reduce the IPO price range from 30,300 won to 37,300 won previously to 25,700 won to 34,300 won, respectively. This represents a decline of 8% to 15%.</p>
<p>The IPO deal size has been revised down to US$243 million to US$325 million. The expected market cap after the IPO is from 933 billion won (low) to 1,245 billion won (high). The book building for the institutional investors starts on 19 August 2021. </p>
<p><strong>Our revised base case valuation of Iljin Hysolus is implied market cap of 940 billion won or 25,898 won per share, which represents 1% higher than the low end of the IPO price range of 25,700 won. Given the lack of upside, we continue to maintain a NEGATIVE view of this IPO and we would avoid this IPO. </strong></p>
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<td style="width: 240pt;">Deal Specifics of the Iljin Hysolus IPO (Revised):</td>
<td style="width: 238pt;"> </td>
</tr>
<tr>
<td style="width: 240pt;">Lead underwriters of the IPO: </td>
<td style="width: 238pt;">Mirae Asset Securities, Samsung Securities</td>
</tr>
<tr>
<td style="width: 240pt;">Expected IPO price per share: </td>
<td style="width: 238pt;">25,700 won (low)/34,300 won (high)</td>
</tr>
<tr>
<td style="width: 240pt;">Number of Shares for IPO:</td>
<td style="width: 238pt;">10.89m shares (7.26m new shares and 3.63m old shares)</td>
</tr>
<tr>
<td style="width: 240pt;">IPO base deal size: </td>
<td style="width: 238pt;">US$243 mn (low);  US$325 mn (high)</td>
</tr>
<tr>
<td style="width: 240pt;">Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 238pt;">36.31m shares</td>
</tr>
<tr>
<td style="width: 240pt;">Expected market cap after IPO:</td>
<td style="width: 238pt;">933 billion won (low)/1,245 billion won (high)</td>
</tr>
<tr>
<td style="width: 240pt;">Book open: </td>
<td style="text-align: left; width: 238pt;">19-Aug-21</td>
</tr>
<tr>
<td style="width: 240pt;">Book closed:</td>
<td style="text-align: left; width: 238pt;">20-Aug-21</td>
</tr>
<tr>
<td style="width: 240pt;">Listing date: </td>
<td style="text-align: left; width: 238pt;">TBD</td>
</tr>
<tr>
<td style="width: 240pt;">Source: Company data</td>
<td style="width: 238pt;"> </td>
</tr>
</tbody>
</table>


Iljin Hysolus reduced its IPO price range. The company announced that it will reduce the IPO price range from 30,300 won to 37,300 won previously to 25,700 won to 34,300 won, respectively. This represents a decline of 8% to 15%.
The IPO deal size has been revised down to US$243 million to US$325 million. The expected market cap after the IPO is from 933 billion won (low) to 1,245 billion won (high). The book building for the institutional investors starts on 19 August 2021. 
Our revised base case valuation of Iljin Hysolus is implied market cap of 940 billion won or 25,898 won per share, which represents 1% higher than the low end of the IPO price range of 25,700 won. Given the lack of upside, we continue to maintain a NEGATIVE view of this IPO and we would avoid this IPO. 







Deal Specifics of the Iljin Hysolus IPO (Revised):
 


Lead underwriters of the IPO: 
Mirae Asset Securities, Samsung Securities


Expected IPO price per share: 
25,700 won (low)/34,300 won (high)


Number of Shares for IPO:
10.89m shares (7.26m new shares and 3.63m old shares)


IPO base deal size: 
US$243 mn (low);  US$325 mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
36.31m shares


Expected market cap after IPO:
933 billion won (low)/1,245 billion won (high)


Book open: 
19-Aug-21


Book closed:
20-Aug-21


Listing date: 
TBD


Source: Company data
 




<p>Our base case valuation of Iljin Hysolus is implied market cap of 817.6 billion won or 22,517 won per share. This represents 26% lower than the low end of the IPO price range of 30,300 won. Given the lower target price versus the IPO price range, we would AVOID this deal. </p><div><p>Established in 2012, Iljin Hysolus is a hydrogen mobility-related parts company that provides hydrogen fuel tanks and modules based on hydrogen storage technology. The company supplied hydrogen fuel tanks for the first time in the industry to the Tucson hydrogen electric vehicle, which Hyundai Motors successfully commercialized in 2014. Since then, it has been supplying hydrogen fuel tanks to hydrogen fuel cell vehicles (FCEV) 'Nexo' and hydrogen buses. </p></div>

Our base case valuation of Iljin Hysolus is implied market cap of 817.6 billion won or 22,517 won per share. This represents 26% lower than the low end of the IPO price range of 30,300 won. Given the lower target price versus the IPO price range, we would AVOID this deal. Established in 2012, Iljin Hysolus is a hydrogen mobility-related parts company that provides hydrogen fuel tanks and modules based on hydrogen storage technology. The company supplied hydrogen fuel tanks for the first time in the industry to the Tucson hydrogen electric vehicle, which Hyundai Motors successfully commercialized in 2014. Since then, it has been supplying hydrogen fuel tanks to hydrogen fuel cell vehicles (FCEV) 'Nexo' and hydrogen buses. 

<p>Iljin Hysolus is getting ready to complete its IPO in Korea in August. Iljin Hysolus is a company specializing in eco-friendly hydrogen fuel storage solutions of the Iljin Group. The company is offering 10.89 million shares, of which 7.26 million is for new shares and 3.63 million is for the old shares. </p><p>The IPO price range is from 30,300 won to 37,300 won. The IPO base deal size is from $289 million to $356 million. According to the bankers' valuation, the expected market cap of the company is from 1.1 trillion won to 1.35 trillion won. The book building for the institutional investors starts on August 8th. Mirae Asset Securities and Samsung Securites are the lead bankers on this deal. </p><table class="table table-striped">
<colgroup>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width: 240pt;"><div><strong>Deal Specifics of the Iljin Hysolus IPO:</strong></div></td>
<td style="width: 238pt;"> </td>
</tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 238pt;">Mirae Asset Securities, Samsung Securities</td>
</tr>
<tr>
<td><strong>Expected IPO price per share: </strong></td>
<td style="width: 238pt;"><strong>30,300 won (low)/37,300 won (high)</strong></td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 238pt;">10.89m shares (7.26m new shares and 3.63m old shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 238pt;">US$289 mn (low);  US$356 mn (high)</td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 238pt;">36.31m shares</td>
</tr>
<tr>
<td><strong>Expected market cap after IPO:</strong></td>
<td style="width: 238pt;"><strong>1,100 billion won (low)/1,354 billion won (high)</strong></td>
</tr>
<tr>
<td>Book open: </td>
<td style="text-align: left; width: 238pt;">8-Aug-21</td>
</tr>
<tr>
<td>Book closed:</td>
<td style="text-align: left; width: 238pt;">9-Aug-21</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 238pt;">TBD</td>
</tr>
<tr>
<td>Source: Company data</td>
<td style="width: 238pt;"> </td>
</tr>
</tbody>
</table>

Iljin Hysolus is getting ready to complete its IPO in Korea in August. Iljin Hysolus is a company specializing in eco-friendly hydrogen fuel storage solutions of the Iljin Group. The company is offering 10.89 million shares, of which 7.26 million is for new shares and 3.63 million is for the old shares. The IPO price range is from 30,300 won to 37,300 won. The IPO base deal size is from $289 million to $356 million. According to the bankers' valuation, the expected market cap of the company is from 1.1 trillion won to 1.35 trillion won. The book building for the institutional investors starts on August 8th. Mirae Asset Securities and Samsung Securites are the lead bankers on this deal. 






Deal Specifics of the Iljin Hysolus IPO:
 


Lead underwriters of the IPO: 
Mirae Asset Securities, Samsung Securities


Expected IPO price per share: 
30,300 won (low)/37,300 won (high)


Number of Shares for IPO:
10.89m shares (7.26m new shares and 3.63m old shares)


IPO base deal size: 
US$289 mn (low);  US$356 mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
36.31m shares


Expected market cap after IPO:
1,100 billion won (low)/1,354 billion won (high)


Book open: 
8-Aug-21


Book closed:
9-Aug-21


Listing date: 
TBD


Source: Company data
 




South Korea

Iljin Hysolus Co Ltd operates environmental problem solving businesses. The Company provides hydrogen solutions, CNG solutions, diesel solutions and other services. Iljin Hysolus conducts businesses in South Korea.

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Iljin Hysolus Reduces IPO Price Range

Iljin Hysolus reduced its IPO price range. The company announced that it will reduce the IPO price range to 25,700 won to 34,300 won. We continue...

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Our base case valuation of Iljin Hysolus is implied market cap of 817.6 billion won or 22,517 won per share. Given the lower target price versus...

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