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

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Events next week:
The pipeline of IPOs just kept swelling as seen above. But this week has been all about the resurgence of Australia IPOs with the launch/pending launch of GQG Partners (1402558D US), Judo Bank (1628888D AU), and Vulcan Steel (VSL AU) bookbuilds. There is also SiteMinder, SG Lottery (SGL AU), and Ventia (CIMIC spin-off) looking to launch soon as well. 


Judo Bank IPO - Built a Niche in the Market by Helping SMEs 
GQG Partners IPO - Strong net inflow since inception but recent underperformance weighs

Vulcan Steel Limited IPO - Past Performance Looks Fine but Margins Might Be at Cyclical Highs 

SG Lottery Pre-IPO - First Look at Possibly Australia’s Largest IPO in 2021 

This week in Hong Kong, Clover Biopharmaceuticals (CBL HK) joined the long list of IPOs approved and pending bookbuild launch. We also initiated on Biocytogen Pharmaceuticals (Beijing) (BCP HK), a pre-clinical and clinical stage research service biopharma company, looking to raise up to US$300m. 

Biocytogen (百奥赛图) Pre-IPO: From Animal CRO to Biotech 
But recent Hong Kong biotech IPO performance hasn't been great as seen from Abbisko Cayman (2256 HK)'s disappointing performance this week. 
Abbisko (和誉) IPO Trading: Poor Demand for the Early Stage R&amp;D
Large Japan placements, Hulic Co Ltd (3003 JP) and SUMCO Corp (3436 JP) have traded well post-pricing which should bolster sentiment for Japan Post Holdings (6178 JP)'s bookbuild which is ongoing until 22nd October and pricing will be on 25th October. 


Sumco Placement Quick Update - A Slightly Wider Discount than 2015 
Japan Post Holdings Placement - The Final US$8bn Countdown - Past Deal Didn't Do Well

However, PHC Holdings (6523 JP)'s IPO did not trade well even after downsizing the IPO and pricing it at the low end.  

PHC Holdings IPO Trading - Needs to Start Acting like One Company to Move Higher 
In India, FSN E-Commerce Ventures (Nykaa) (1003622D IN) is looking to launch its IPO later this month. More IPOs should come soon too as it was reported that Adani Wilmar and Star Health Insurance IPOs have secured their approval from SEBI this week.


FSN E-Commerce (Nykaa) Pre-IPO - Mixed Bag - Fashion Growing, Beauty Slowing 

Star Health Insurance Pre-IPO - Leading the Retail Healthcare Insurance Space 

In Korea, Kakao Pay (377300 KS) will open its books on this coming Wednesday, for a day. We took a look at valuation again and also compared it to KakaoBank (323410 KS).


Kakao Pay IPO - Low-End Still Appear Reasonable but Stock Will More Likely Be Driven by Sentiment 
Kakao Pay IPO - Comparison with Kbank and an alternate look at valuation

Last, but not least, tearsheets for newly filed IPOs this week:


Wellness Forever Pre-IPO Tearsheet 

Green Tea Group Pre-IPO Tearsheet (Refiled) 

SBI Sumishin Net Bank Pre-IPO Tearsheet 

Farm Fresh Berhad Pre-IPO Tearsheet 

Global Health Pre-IPO Tearsheet 

Accuracy Rate:Our overall accuracy rate is 73.6% for IPOs and 67.9% for Placements (Performance measurement criteria is explained at the end of the note)New IPO filings this week  
Beijing Yuanxin Technology (Hong Kong, US$500m)News on Upcoming IPOs  
Hong Kong/China
Clover pre-markets US$300m HK IPO
China’s Little Red Book Said to Shift IPO to Hong Kong From U.S.
China EV Startup Leapmotor Said to Mull $1 Billion Hong Kong IPO
SF Holding's intracity services unit gets regulatory approval for Hong Kong float
Online brokers Futu and UP Fintech face regulatory risks
ByteDance-Backed Manner Coffee Is Said to Weigh Hong Kong IPO
Wumart Owner Is Said to Shelve $1 Billion Hong Kong IPO Plan
GLP-Backed China Logistics Firm Zongteng Group Said to Weigh IPO
Beijing Yuanxin Technology Files for Listing in Hong Kong
HK-delisted CIMC-TianDa Holdings files for Rmb1.42bn ChiNext IPO
SSE halts Syngenta Group’s Rmb65bn Star IPO review
China Telecom’s A-shares rebound after greenshoe exercised
CNOOC kicks off IPO tutorial ahead of Rmb35bn Shanghai float
Wayz Intelligent Manufacturing Technology prices Rmb2.98bn Star IPO
SSE resumes Syngenta's IPO review
CIMC-TianDa files for ChiNext IPO
Lenovo Group cancels Rmb10bn Star IPO one working day after filing
US/China ADR
ADIA, Temasek said to invest in Indonesian tech giant GoTo’s pre-IPO round

Pine Labs Mulling IPO in 12 Months, Pine  Labs  may file for nearly $1 bn Nasdaq IPO by  Oct  end

India

Blackstone’s plan to raise $770m from Aadhar Housing IPO stuck over Sebi nod

India's Zostel asks regulator to reject Oyo's IPO filing
More global biggies line up for Paytm's $2.2-billion IPO
Nykaa targets October launch for Rs40bn IPO
India Is Said to Plan IPO of State-Owned Warehousing Entity
Adani Wilmar IPO Likely to Get SEBI Approval This Week
India Roundup: Nykaa revises equity offer to raise $83.7m in IPO, and more
Scrutiny slows India tech IPOs
India eyes bank panel for stake sales
Japan/Korea
SM Line set to open books for KRX IPO next month
Tesla Battery Supplier LG Energy Solutions To Go Public By Year-End
LG Energy to Resume IPO as It Reaches Recall Deal With GM
Kakao Pay opens books for W1.53trn KRX IPO
S. Korean E-Commerce Platform Tmon Seeks IPO in 2022
Others
Billion-dollar floats set to smash ASX records

SG Lottery taps Bell Potter, Morgans to spearhead retail investor push, SG Lottery eyes ASX jackpot

SiteMinder joins cornerstone party, terms due this week

IPO candidate APM a $3b to $4b company: pre-deal research, APM earmarks $339m primary capital for $1b-plus IPO

GQG Partners open retail books for A$1.3bn ASX IPO
CIMIC spin-off Ventia worth up to $3.62b: pre-IPO reports
Daiwa House plans S$450m SGX REIT IPO
Philippines SEC Approves Share Sales by Medilines, Sta. Lucia
Dayamitra starts US$1bn IPO pre-marketing
Avia Avian starts pre-marketing up to US$750m IPO
Analysis on Upcoming IPOs

Name
Insight

Hong Kong

4Paradigm
4Paradigm (第四范式智能) Pre-IPO - Stupendous Growth but Needs Better Disclosure of Certain Data 


APM Monaco
APM Monaco Pre-IPO - China’s Resilience Shines 


Airdoc
Beijing Airdoc (北京鹰瞳科技) Pre-IPO - A Niche Field with Merits but Can It Sell? 


Anjuke
Anjuke Pre-IPO - Mixed (Positive and Negative) Developments 


Ambio
AmbioPharm (昂博制药) Pre-IPO: Peptide CDMO Leader Turning Licensor 


Biel Crystal
Biel Crystal (伯恩光学) Pre-IPO - Cash Flow Generative Business but Underlying Trend Is Worrying 


Biel Crystal
Biel Crystal (伯恩光学) Pre-IPO - Industry Landscape &amp; Peer Comparison -  Auto Is the Wildcard 


ByteDance
ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)


ByteDance
ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 


ByteDance
ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India 


ByteDance
ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Mixed PHIP Update, Updated Thoughts on Valuation 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Initial Thoughts on Valuation 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Tencent Music Peer Comp, Regulatory Impact 


Cloud Village
Cloud Village (NetEase Music) Pre-IPO - Was in the Slow Stream, Playing Catch-Up 


Edda 
EDDA Healthcare Pre-IPO - RoboDoc - Has Been Around for a While but Is Just Getting the Robo Going 


Dingdang
Dingdang Health Tech (叮当健康) Pre-IPO - Impressive Growth but Not Without Concerns 


Intco Med
Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1 


Imeik
Imeik Tech (爱美客) A/H Pre-IPO - Dermal Filler Leader Capitalizing on Its Valuation 


Jenscare
Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio 


Medbanks
Medbanks (思派健康) Pre-IPO - Caught a Lucky Break 


MicroPort Medbot
MicroPort MedBot Pre-IPO - RoboDoc - Pre-Revenue, Has a Large Competitor but a Large Market as Well 


NewMed
NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR 


Neusoft Xikang
Neusoft Xikang (东软熙康) Pre-IPO: A Long Way to Profit 


Neusoft Med
Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals 


WeDoctor

WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More 


WeDoctor

WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 


WeDoctor

We Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely 


WeDoctor

We Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 


Weilong

Weilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers 


Weilong

Weilong Delicious Global Pre-IPO - The Negatives - Spicy Valuation 

India

Aadhar Housing

Aadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures 


Anmol Ind
Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders


Bharat Hotel
Bharat Hotels Pre-IPO - Catching up with Peers 


Bajaj En
Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 


Crystal Crop
Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers


ESAF SFB

ESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party 


Flemingo 
Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country


Emami Cem

Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 


NSE
NSE IPO Preview- Not Only Fast..its Risky and Expensive


NSE
National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some


LIC

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO 


Penna Cem

Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 


PNB Met
PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers


Star Health

Star Health Insurance Pre-IPO - Leading the Retail Healthcare Insurance Space 

Malaysia

QSR
QSR Brands Pre-IPO - As Healthy as Fast Food

U.S.

FWD

FWD Pre-IPO - Thoughts on Valuation 


FWD

FWD Pre-IPO - The Positives - Growing Fast 


FWD

FWD Pre-IPO - The Positives - Growing Fast 



ECM Weekly (17th October 2021) - SG Lottery, GQG, Judo Bank, Vulcan Steel, Biocytogen, Kakao Pay

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

In our view, there is a relatively high probability that <a href="https://www.smartkarma.com/entities/kt-corp" target="_blank" data-smartkarma-citation="entities:1112:1" rel="noopener">KT Corp (030200 KS)</a> will follow <a href="https://www.smartkarma.com/entities/sk-telecom-co-ltd-bbccd86c-474d-4a4d-946d-10e911a225a2" target="_blank" data-smartkarma-citation="entities:395:1" rel="noopener">SK Telecom (017670 KS)</a> in forming a holding company structure. Although the exact timing is uncertain, we think that KT could make this announcement by 2022/2023.3 Major Reasons Why KT is Likely to Change to a Holding Company Structure:<ul>
<li>Greater importance of non-telecom business (realize higher valuations) </li>
<li>Bypass the 49% foreign ownership limit specific to the telecom business (greater importance of index investing)</li>
<li>Follow SK Telecom (less resistance from major investors)</li>
</ul>Despite KT's stock price rising more than 30% YTD, KT is still trading at only 0.5x P/B. By forming a holding company structure and split the company's business into telecom and non-telecom business units, we believe that there likely to be a higher value realization for the company.

In our view, there is a relatively high probability that KT Corp (030200 KS) will follow SK Telecom (017670 KS) in forming a holding company structure. Although the exact timing is uncertain, we think that KT could make this announcement by 2022/2023.3 Major Reasons Why KT is Likely to Change to a Holding Company Structure:
Greater importance of non-telecom business (realize higher valuations) 
Bypass the 49% foreign ownership limit specific to the telecom business (greater importance of index investing)
Follow SK Telecom (less resistance from major investors)
Despite KT's stock price rising more than 30% YTD, KT is still trading at only 0.5x P/B. By forming a holding company structure and split the company's business into telecom and non-telecom business units, we believe that there likely to be a higher value realization for the company.

Three Major Reasons Why KT Corp Is Likely to Change to a Holding Company Structure

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 Bottom-Up

Short-selling to Kakao Bank is not decreasing. On the contrary, the trend is getting worse. The proportion of short trading in today's total trading volume again hit the 15% level. Today's short VWAP was ₩66,241.<div class="content-highlight">Today's closing price was $65,500, which is actually the lowest since listing. Even at this lowest price, short-selling was made quite aggressively.</div>Today's shorting also has an important meaning in terms of share price trends. Except for September 10, when short selling was allowed, the days with the most short-selling were September 15 and September 16. However, this time, it was a short sale aimed at a price surge right after the share price rose by almost 8% on September 14.However, today, when the stock price has already fallen for three consecutive days, short-selling has reached the level of more than 15% of the trading volume. Rather than a shorting inflow due to a temporary share price rebound, today's should be seen as a short-selling betting on a structural downward trend in Kakao Bank's share price.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/233/021/original/image_27221576321633093091286.png?1633093093" class="editor-image img-responsive" data-smartkarma-image-id="233021"></figure>The daily loan balance (new vs. repaid) below also has interesting implications. Yesterday (September 30), there was a significant level of repayment. There were loan repayments of over 1M, the highest level since short selling was allowed. Yesterday's closing price was ₩68,400, and yesterday's repayment can be interpreted as a partial liquidation of short positions betting on short-term stock price volatility after listing.However, it is worth noting that today's share price has been sufficiently corrected; still, new loans are close to 700K. So, the loan balance returned to close to 15M again. This can be another evidence suggesting a new influx of short-sellers aiming for a structural downturn in Kakao Bank's fundamentals instead of betting on short-term price volatility.<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Newly loaned shares"}'>Newly loaned shares</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Loaned shares repaid"}'>Loaned shares repaid</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Loan balance"}'>Loan balance</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Short interest"}'>Short interest</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Loan balance/Short interest"}'>Loan balance/Short interest</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44449}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 10</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3150200}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,150,200</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":546907}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>546,907</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6940058}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>6,940,058</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1330825}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,330,825</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5.214853943982116}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">5.21x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44452}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 13</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2626620}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,626,620</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":216381}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>216,381</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9350297}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>9,350,297</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1621216}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,621,216</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5.767459117107159}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">5.77x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44453}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 14</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2605990}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,605,990</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":453409}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>453,409</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11502878}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>11,502,878</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2344735}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,344,735</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.905832855312007}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.91x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44454}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 15</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1164047}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,164,047</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":68003}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>68,003</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12598922}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>12,598,922</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2912744}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,912,744</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.3254477564798}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.33x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44455}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 16</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1231797}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,231,797</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":156382}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>156,382</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":13674337}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>13,674,337</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3326154}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,326,154</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.1111557071620854}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.11x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44456}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 17</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":609292}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>609,292</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":263228}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>263,228</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14020401}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>14,020,401</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3363456}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,363,456</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.168450843418198}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.17x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44462}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 23</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":262003}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>262,003</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":599445}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>599,445</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":13682959}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>13,682,959</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3375519}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,375,519</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.053586722515856}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.05x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44463}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 24</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1513289}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,513,289</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":256602}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>256,602</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14939646}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>14,939,646</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3229657}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,229,657</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.625768618772829}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.63x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44466}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 27</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1165155}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,165,155</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":617393}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>617,393</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15487408}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>15,487,408</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3282877}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,282,877</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.717632734945598}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.72x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44467}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 28</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":151094}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>151,094</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":318789}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>318,789</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15319713}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>15,319,713</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3317155}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,317,155</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.618328959605445}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.62x</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44468}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 29</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":256811}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>256,811</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":309072}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>309,072</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15267452}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>15,267,452</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3455668}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,455,668</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4.418089932250436}' data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}' data-sheets-formula="=R[0]C[-2]/R[0]C[-1]">4.42x</td>
</tr>
<tr><td colspan="6"></td></tr>
<tr>
<td data-sheets-value='{"1":3,"3":44469}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>9. 30</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":568014}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>568,014</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1178857}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,178,857</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14656609}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>14,656,609</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>-</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}'>- </td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44470}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>10. 1</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":655302}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>655,302</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":463995}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>463,995</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14847916}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>14,847,916</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>-</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.00x","3":1}'>- </td>
</tr>
<tr><td colspan="6" data-sheets-value='{"1":2,"2":"Source: KOFIA &amp; KRX"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Source: KOFIA &amp; KRX</td></tr>
</tbody>
</table>

Short-selling to Kakao Bank is not decreasing. On the contrary, the trend is getting worse. The proportion of short trading in today's total trading volume again hit the 15% level. Today's short VWAP was ₩66,241.Today's closing price was $65,500, which is actually the lowest since listing. Even at this lowest price, short-selling was made quite aggressively.Today's shorting also has an important meaning in terms of share price trends. Except for September 10, when short selling was allowed, the days with the most short-selling were September 15 and September 16. However, this time, it was a short sale aimed at a price surge right after the share price rose by almost 8% on September 14.However, today, when the stock price has already fallen for three consecutive days, short-selling has reached the level of more than 15% of the trading volume. Rather than a shorting inflow due to a temporary share price rebound, today's should be seen as a short-selling betting on a structural downward trend in Kakao Bank's share price.The daily loan balance (new vs. repaid) below also has interesting implications. Yesterday (September 30), there was a significant level of repayment. There were loan repayments of over 1M, the highest level since short selling was allowed. Yesterday's closing price was ₩68,400, and yesterday's repayment can be interpreted as a partial liquidation of short positions betting on short-term stock price volatility after listing.However, it is worth noting that today's share price has been sufficiently corrected; still, new loans are close to 700K. So, the loan balance returned to close to 15M again. This can be another evidence suggesting a new influx of short-sellers aiming for a structural downturn in Kakao Bank's fundamentals instead of betting on short-term price volatility.










Date
Newly loaned shares
Loaned shares repaid
Loan balance
Short interest
Loan balance/Short interest


9. 10
3,150,200
546,907
6,940,058
1,330,825
5.21x


9. 13
2,626,620
216,381
9,350,297
1,621,216
5.77x


9. 14
2,605,990
453,409
11,502,878
2,344,735
4.91x


9. 15
1,164,047
68,003
12,598,922
2,912,744
4.33x


9. 16
1,231,797
156,382
13,674,337
3,326,154
4.11x


9. 17
609,292
263,228
14,020,401
3,363,456
4.17x


9. 23
262,003
599,445
13,682,959
3,375,519
4.05x


9. 24
1,513,289
256,602
14,939,646
3,229,657
4.63x


9. 27
1,165,155
617,393
15,487,408
3,282,877
4.72x


9. 28
151,094
318,789
15,319,713
3,317,155
4.62x


9. 29
256,811
309,072
15,267,452
3,455,668
4.42x



9. 30
568,014
1,178,857
14,656,609
-
- 


10. 1
655,302
463,995
14,847,916
-
- 

Source: KOFIA &amp; KRX



<div class="content-highlight">
<a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">KakaoBank (323410 KS)</a>'s stock price declined by 4.2% today to 65,500 won, driven lower by<a href="https://finance.naver.com/item/main.naver?code=323410" target="_blank" rel="noopener"> news</a> about a sharp increase in voice phishing and higher fraudulent accounts. From the launch of the Internet banks in 2017 to 2020, the number of <a href="https://www.edaily.co.kr/news/read?newsId=02309126629208656&amp;mediaCodeNo=257&amp;OutLnkChk=Y" target="_blank" rel="noopener">fraudulent accounts</a> at Internet banks (Kakao Bank and K-Bank) increased significantly while the number of fraudulent accounts at the existing commercial banks declined in this period. 
The number of suspended fraudulent accounts at Kakao Bank increased from 199 in 2017 to 2,705 in 2020, up more than 13x. This figure was 2,025 in 1H 2021, which was 75% of the entire fraudulent accounts in 2020. 
</div>While Toss Bank is aggressively trying to gain new customers with its attractive loans and deposit rates, <a href="https://www.yonhapnewstv.co.kr/news/MYH20211001016500641?did=1825m" target="_blank" rel="noopener">Kakao Bank</a> announced that it will temporarily suspend negative loans from 1 October to 31 December 2021. The suspension of the negative loans is part of Kakao Bank's efforts to better control the growth rate of household loans.


KakaoBank (323410 KS)'s stock price declined by 4.2% today to 65,500 won, driven lower by news about a sharp increase in voice phishing and higher fraudulent accounts. From the launch of the Internet banks in 2017 to 2020, the number of fraudulent accounts at Internet banks (Kakao Bank and K-Bank) increased significantly while the number of fraudulent accounts at the existing commercial banks declined in this period. 
The number of suspended fraudulent accounts at Kakao Bank increased from 199 in 2017 to 2,705 in 2020, up more than 13x. This figure was 2,025 in 1H 2021, which was 75% of the entire fraudulent accounts in 2020. 
While Toss Bank is aggressively trying to gain new customers with its attractive loans and deposit rates, Kakao Bank announced that it will temporarily suspend negative loans from 1 October to 31 December 2021. The suspension of the negative loans is part of Kakao Bank's efforts to better control the growth rate of household loans.

Kakao Bank - A Sharp Increase in Fraudulent Accounts

Telco/Internet specialist

Kirk Boodry

Redex Research

Rakuten announced today it would both prepare for a potential listing of Rakuten Bank and the incorporation of Symphony, the mobile network system integrator.  This could represent the next funding step for Rakuten as its mobile network investment accelerates although the news today is preliminary enough to be considered a trial balloon. A Bank listing could surface hidden value as we think fintech represents a majority of Rakuten’s overall value even as mobile and eCommerce grab the headlines. Unfortunately, until mobile turns the corner on operating losses we are unlikely to see a meaningful change in sentiment. We remain at Neutral.

Rakuten announced today it would both prepare for a potential listing of Rakuten Bank and the incorporation of Symphony, the mobile network system integrator.  This could represent the next funding step for Rakuten as its mobile network investment accelerates although the news today is preliminary enough to be considered a trial balloon. A Bank listing could surface hidden value as we think fintech represents a majority of Rakuten’s overall value even as mobile and eCommerce grab the headlines. Unfortunately, until mobile turns the corner on operating losses we are unlikely to see a meaningful change in sentiment. We remain at Neutral.

Rakuten Group (Neutral) - Testing the Waters on Further Funding

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)

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