Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>After the market close today, KakaoBank (323410 KS)  announced a block deal worth 514 billion won involving 7.62 million shares.</li>
<li>The block deal sale accounts for 1.6% of outstanding shares. Netmarble Corporation (251270 KS) is selling its stake in KakaoBank.</li>
<li>We would not take the deal. Our valuation suggests an implied price of 56,144 won per share for KakaoBank, which is 17% below current price. </li>
</ul>


After the market close today, KakaoBank (323410 KS)  announced a block deal worth 514 billion won involving 7.62 million shares.
The block deal sale accounts for 1.6% of outstanding shares. Netmarble Corporation (251270 KS) is selling its stake in KakaoBank.
We would not take the deal. Our valuation suggests an implied price of 56,144 won per share for KakaoBank, which is 17% below current price. 


Kakao Bank - Announces a Block Deal Sale of 514 Billion Won

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.

Equity Capital Markets

<ul>
<li>Netmarble aims to raise up to US$415m via selling 1.5% stake in Kakao Bank.</li>
<li>This is not the first selldown by Netmarble and hence, it might be kind of expected as it comes after the three month lock-up expired last month.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


Netmarble aims to raise up to US$415m via selling 1.5% stake in Kakao Bank.
This is not the first selldown by Netmarble and hence, it might be kind of expected as it comes after the three month lock-up expired last month.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Kakao Bank Placement - Not a Surprise but past Deal Didn’t Do Well

LG Energy Solution / Equity Capital Markets

<ul>
<li>LG Energy Solution is getting ready to complete its IPO in the Korean stock market on 27 January 2022. The IPO price is from 257,000 won to 300,000 won. </li>
<li>The IPO base deal size is from $9.3 billion to $10.8 billion. This is the biggest ever IPO in Korea. </li>
<li>The bankers used CATL and Samsung SDI as its comps. Using their annualized EBITDA in 2021, the average EV/EBITDA of its peers is 51.4x (2021E). </li>
</ul>


LG Energy Solution is getting ready to complete its IPO in the Korean stock market on 27 January 2022. The IPO price is from 257,000 won to 300,000 won. 
The IPO base deal size is from $9.3 billion to $10.8 billion. This is the biggest ever IPO in Korea. 
The bankers used CATL and Samsung SDI as its comps. Using their annualized EBITDA in 2021, the average EV/EBITDA of its peers is 51.4x (2021E). 


<ul>
<li>This is our 7th "Annual Edition of the Major Korean IPOs Pipeline Preview" at Smartkarma! </li>
<li>This insight will feature 50 of the biggest potential IPOs in Korea in 2022. </li>
<li>The IPO pipeline in 2022 is very strong, led by LG Energy Solution. However, 2022 is likely to be the peak year for IPO capital raising in Korea. </li>
</ul>


This is our 7th "Annual Edition of the Major Korean IPOs Pipeline Preview" at Smartkarma! 
This insight will feature 50 of the biggest potential IPOs in Korea in 2022. 
The IPO pipeline in 2022 is very strong, led by LG Energy Solution. However, 2022 is likely to be the peak year for IPO capital raising in Korea. 


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.

<ul>
<li>The upcoming rebalancing should feature a total of 12 constituents having a ±5%p free float change: eight members with +5%p or greater and four members with -5%p or harsher.</li>
<li>It seems better to outright trade individual liquidity-rich stocks: SK Bioscience, SKIET, Kakao Bank, and Krafton.</li>
<li>Considering that SKIET's recent share price correction was severe, we may want to take a relatively long trading window for SKIET while taking a tighter approach to the rest.</li>
</ul>


The upcoming rebalancing should feature a total of 12 constituents having a ±5%p free float change: eight members with +5%p or greater and four members with -5%p or harsher.
It seems better to outright trade individual liquidity-rich stocks: SK Bioscience, SKIET, Kakao Bank, and Krafton.
Considering that SKIET's recent share price correction was severe, we may want to take a relatively long trading window for SKIET while taking a tighter approach to the rest.


KOSPI 200 December Rebalancing: Constituents with a Substantial Free Float Change

South Korea

KakaoBank Corp. operates bank businesses. The Company provides deposit money, withdraw money, credit cards, stock accounts, linked loans, and other services. KakaoBank conducts businesses in South Korea.

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KakaoBank (323410 KS)

Kakao Bank - Announces a Block Deal Sale of 514 Billion Won

After the market close today, KakaoBank (323410 KS) announced a block deal worth 514 billion won involving 7.62 million shares.

Douglas Kim

Kakao Bank Placement - Not a Surprise but past Deal Didn’t Do Well

Netmarble aims to raise up to US$415m via selling 1.5% stake in Kakao Bank. In this note, we will talk about the deal dynamics and run the deal...

Sumeet Singh

LG Energy Solution IPO Preview

LG Energy Solution is getting ready to complete its IPO in the Korean stock market on 27 January 2022. This is the biggest ever IPO in Korea.

Douglas Kim

2022 Major IPOs Pipeline in Korea

This is our 7th "Annual Edition of the Major Korean IPOs Pipeline Preview" at Smartkarma! This insight will feature 50 of the biggest IPOs in Korea...

Douglas Kim

KOSPI 200 December Rebalancing: Constituents with a Substantial Free Float Change

KOSPI 200 rebalancing next month should feature a total of 12 constituents having a ±5%p free float change: eight members with +5%p or greater and...

Sanghyun Park

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