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 Capital Markets

<p>The following six major IPOs will debut in the Korean stock market in the second half of this year.</p><table class="table table-striped">
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<td data-sheets-value='{"1":2,"2":"Major IPOs in Korea later this year"}'>Major IPOs in Korea later this year</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Tentative listing date"}'>Tentative listing date</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Target valuation"}'><div><div>Estimated target valuation</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hyundai Heavy Industries"}'>Hyundai Heavy Industries</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"September"}'>September</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩4.5~5.3T"}'>₩4.5T~₩5.3T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Pay"}'><strong>Kakao Pay</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"October"}'><strong>October</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩8.0~12.0T"}'><strong>₩7.0T~₩11.0T</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Simone Accessory"}'>Simone Accessory Collection</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"October"}'>October</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩2.0T"}'>₩2.0T</td>
</tr>
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<td data-sheets-value='{"1":2,"2":"Hyundai Engineering"}'>Hyundai Engineering</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"4th quarter"}'>4th quarter</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩7.0~9.0T"}'>₩8.0T~₩10.0T</td>
</tr>
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<td data-sheets-value='{"1":2,"2":"Netmarble Neo"}'>Netmarble Neo</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"4th quarter"}'>4th quarter</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩2.0T"}'>₩2.0T</td>
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<td data-sheets-value='{"1":2,"2":"LG Energy Solution"}'><strong>LG Energy Solution</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"4th quarter"}'><strong>4th quarter or next year</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩50.0~70.0T"}'><strong>₩50.0T~₩70.0T</strong></td>
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<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: Local news outlets"}'>Source: Local news outlets</td></tr>
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</table><ul>
<li>First of all, <strong>Hyundai Heavy Industries</strong> will complete its listing by the end of September.</li>
<li>
<strong>Kakao Pay</strong> will submit a revised IPO prospectus next week and complete the listing process by October.</li>
<li>
<strong>Hyundai Engineering</strong>, in charge of plant and infrastructure at Hyundai Motor Group, is also expected to debut on the KOSPI around November. Hyundai Engineering's valuation is estimated at up to ₩10T.</li>
<li>In addition, <strong>Simone Accessory Collection</strong> and <strong>Netmarble Neo</strong> are also expected to make a debut on the KOSPI in the fourth quarter. They are each aiming for an IPO valuation of ₩2T.</li>
<li>However, <strong>LG Energy Solutions</strong>, originally scheduled to go public in October, is highly likely to delay the IPO schedule due to the GM recall incident this week.</li>
</ul>

The following six major IPOs will debut in the Korean stock market in the second half of this year.







Major IPOs in Korea later this year
Tentative listing date
Estimated target valuation


Hyundai Heavy Industries
September
₩4.5T~₩5.3T


Kakao Pay
October
₩7.0T~₩11.0T


Simone Accessory Collection
October
₩2.0T


Hyundai Engineering
4th quarter
₩8.0T~₩10.0T


Netmarble Neo
4th quarter
₩2.0T


LG Energy Solution
4th quarter or next year
₩50.0T~₩70.0T

Source: Local news outlets


First of all, Hyundai Heavy Industries will complete its listing by the end of September.

Kakao Pay will submit a revised IPO prospectus next week and complete the listing process by October.

Hyundai Engineering, in charge of plant and infrastructure at Hyundai Motor Group, is also expected to debut on the KOSPI around November. Hyundai Engineering's valuation is estimated at up to ₩10T.
In addition, Simone Accessory Collection and Netmarble Neo are also expected to make a debut on the KOSPI in the fourth quarter. They are each aiming for an IPO valuation of ₩2T.
However, LG Energy Solutions, originally scheduled to go public in October, is highly likely to delay the IPO schedule due to the GM recall incident this week.


Kakao Pay Listing Resumes Next Week, but LG Energy Solution IPO Delayed Possibly to Next Year

Event-Driven

<h2>3 key points of the first earnings release</h2><hr><p><strong>Point 1: Kakao Bank recorded ₩116B in net profit in the first half, surpassing last year's annual performance just in half a year.</strong></p><div class="content-highlight"><p>This is an increase of 156.2% from the first half of last year. Net profit for the second quarter was ₩69B, up 158.7% from the second quarter of last year.</p></div><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/268/original/Screen+Shot+2021-08-17+at+3.15.33+AM.png?1629184549" class="editor-image img-responsive" data-smartkarma-image-id="224268"></figure></section><hr>
<p><strong>Point 2: As for Kakao Bank's platform sector growth, stock account opening application services and loans linked to non-banking financial companies (NBFCs) increased by 43% and 51%, respectively, from the end of the previous year.</strong></p>
<div class="content-highlight"><p>This platform sector performance is crucial in determining the possibility of Kakao Bank taking a healthier growth path. And it seems to have robust growth in this area.</p></div>
<section class="figure"><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/295/original/Screen+Shot+2021-08-17+at+4.25.41+AM.png?1629188760" class="editor-image img-responsive" data-smartkarma-image-id="224295"></figure></section></section></section><hr>
<p><strong>Point 3: As of the end of June, Kakao Bank users stood at 16.71 million, an increase of 1.27 million from the end of last year.</strong></p>
<div class="content-highlight">
<p>The increase in new customers of Kakao Bank this year was led by people in their 40s and older. Since launching the service, the percentage of accumulated customers in their 20s and 30s was 54%, but 48% of new customers in the first half of this year are in their 40s and 50s.</p>
<p>This is a very positive signal for Kakao Bank, which tries to convert its flagship product from a low-yielding personal credit loan to a high-yield product, a mortgage loan.</p>
</div>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/286/original/Screen+Shot+2021-08-17+at+3.40.11+AM.png?1629186027" class="editor-image img-responsive" data-smartkarma-image-id="224286"></figure></section></section>

3 key points of the first earnings releasePoint 1: Kakao Bank recorded ₩116B in net profit in the first half, surpassing last year's annual performance just in half a year.This is an increase of 156.2% from the first half of last year. Net profit for the second quarter was ₩69B, up 158.7% from the second quarter of last year.
Point 2: As for Kakao Bank's platform sector growth, stock account opening application services and loans linked to non-banking financial companies (NBFCs) increased by 43% and 51%, respectively, from the end of the previous year.
This platform sector performance is crucial in determining the possibility of Kakao Bank taking a healthier growth path. And it seems to have robust growth in this area.

Point 3: As of the end of June, Kakao Bank users stood at 16.71 million, an increase of 1.27 million from the end of last year.

The increase in new customers of Kakao Bank this year was led by people in their 40s and older. Since launching the service, the percentage of accumulated customers in their 20s and 30s was 54%, but 48% of new customers in the first half of this year are in their 40s and 50s.
This is a very positive signal for Kakao Bank, which tries to convert its flagship product from a low-yielding personal credit loan to a high-yield product, a mortgage loan.



Local Retail-Led Momentum Trading Today, Preemptively Reflecting Kakao Bank's Earnings Release

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.

<div><p>Kakao Bank (KB), South Korea’s largest digital bank, raised US$2.2bn in its South Korean IPO. It ended the first day of trading up 79% from its IPO price. </p></div><div>We have covered various aspects of the deal in our previous notes:</div><div><ul>
<li>
<a href="https://www.smartkarma.com/insights/kakao-bank-ipo-riding-on-parent-s-network-but-boundaries-with-kakao-pay-remain-unclear" target="_blank" rel="noopener">Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear</a>, </li>
<li><a href="https://www.smartkarma.com/insights/kakao-bank-ipo-pricey-as-it-should-be" target="_blank" rel="noopener">Kakao Bank IPO - Pricey as It Should Be</a></li>
<li><a href="https://www.smartkarma.com/insights/kakao-bank-ipo-lack-of-lock-up-and-msci-ftse-index-implications" target="_blank" rel="noopener">Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications, and</a></li>
<li><a href="https://www.smartkarma.com/insights/kakao-bank-ipo-trading-one-for-instis-closer-look-at-ftse-and-msci-inclusion-remain-buyers" target="_blank" rel="noopener">Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers</a></li>
</ul></div><div><p>In this note, we will talk about the first day trading and index inclusion.</p></div>

Kakao Bank (KB), South Korea’s largest digital bank, raised US$2.2bn in its South Korean IPO. It ended the first day of trading up 79% from its IPO price. We have covered various aspects of the deal in our previous notes:

Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear, 
Kakao Bank IPO - Pricey as It Should Be
Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications, and
Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers
In this note, we will talk about the first day trading and index inclusion.

Kakao Bank - MSCI Done, Missed FTSE by a Whisker.

<p>Kakao Bank's listing-day performance certainly exceeds expectations.</p><p>The opening price has risen by 38% compared to the offering price, and today's high was ₩68,000, and it currently settles at ₩63,100. This is a 60% increase from the offering price, and the market cap reaches ₩30T.</p><table class="table table-striped">
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<td data-sheets-value='{"1":2,"2":"Kakao Bank today"}'>Kakao Bank today</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Market cap"}'>Market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"From the offering price"}'>From the offering price</td>
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<tr>
<td data-sheets-value='{"1":2,"2":"Offering price"}'>Offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":39000}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩39,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18.528909243}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩18.53T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">-</td>
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<tr>
<td data-sheets-value='{"1":2,"2":"Opening price"}'>Opening price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":53700}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩53,700</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":25.5128827269}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩25.51T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3769230769230769}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">37.69%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily high"}'>Daily high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":68000}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩68,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":32.306816116}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩32.31T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7435897435897436}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">74.36%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily low"}'>Daily low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":51000}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩51,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":24.230112087}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩24.23T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3076923076923077}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">30.77%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":63100}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩63,100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":29.9788249547}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩29.98T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.617948717948718}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">61.79%</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>As a result, Kakao Bank has easily surpassed its direct competitors, KB Financial and Shinhan Financial, in market capitalization and is currently ranked 12th in the KOSPI by market capitalization.</p><table class="table table-striped">
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<td style="width: 107.017px;" data-sheets-value='{"1":2,"2":"KOSPI top 15"}'>KOSPI top 15</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":2,"2":"Market cap"}'>Market cap</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":1}'>1</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005930"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005930"'>005930</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":487.731234335}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩487.73T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":2}'>2</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"SK Hynix Inc"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK Hynix</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"000660"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="000660"'>000660</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":85.90427907}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩85.90T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":3}'>3</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Naver Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Naver</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"035420"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="035420"'>035420</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":72.60442059}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩72.60T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":4}'>4</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Kakao Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Kakao</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"035720"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="035720"'>035720</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":64.89119358}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩64.89T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":5}'>5</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd Preference Shares Non Voting"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics 1P</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005935"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005935"'>005935</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":61.55192516}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩61.55T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":6}'>6</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung Biologics Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Biologics</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"207940"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="207940"'>207940</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":60.8718}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩60.87T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":7}'>7</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"LG Chem Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>LG Chem</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"051910"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="051910"'>051910</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":59.791714521}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩59.79T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":8}'>8</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung SDI</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"006400"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="006400"'>006400</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":53.36127528}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩53.36T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":9}'>9</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Hyundai Motor Co"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyundai Motor</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005380"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005380"'>005380</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":47.648005701}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩47.65T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":10}'>10</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Celltrion, Inc."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Celltrion</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"068270"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="068270"'>068270</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":33.438886896}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩33.44T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":11}'>11</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Kia Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Kia</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"000270"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="000270"'>000270</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":34.6991025032}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩34.70T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":12}'><strong>12</strong></td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Kakao Bank"}'><strong>Kakao Bank</strong></td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"323410"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="323410"'><strong>323410</strong></td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":29.9788249547}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula="=R[-15]C[-1]"><strong>₩29.98T</strong></td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":13}'>13</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"POSCO"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>POSCO</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"005490"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="005490"'>005490</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":29.9486778225}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩29.95T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":14}'>14</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung C&amp;T</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"028260"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="028260"'>028260</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":26.911739664}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩26.91T</td>
</tr>
<tr>
<td style="width: 107.017px;" data-sheets-value='{"1":3,"3":15}'>15</td>
<td style="width: 296.08px;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyundai Mobis</td>
<td style="width: 121.023px;" data-sheets-value='{"1":2,"2":"012330"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="012330"'>012330</td>
<td style="text-align: right; width: 184.091px;" data-sheets-value='{"1":3,"3":26.257687038}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000000'>₩26.26T</td>
</tr>
<tr><td colspan="4" rowspan="1" style="width: 708.21px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><h2><strong>Strong foreign buying this morning</strong></h2><div class="content-highlight"><ul>
<li><strong>Kakao Bank's share price fell below the opening price early this morning, raising some concerns. However, a strong buying from investors presumed to be foreign institutions came in rapidly through the foreign brokerage counter, mainly Credit Suisse.</strong></li>
<li><strong>As of 11:30 a.m., a purchase order of 6 million shares came in through the CS counter. This is 15% of the total purchase volume, which is an unusually large amount brokered by a foreign brokerage for local stocks any given day.</strong></li>
<li><strong>Therefore, the proportion of net buying by foreign investors is currently overwhelmingly high.</strong></li>
</ul></div>

Kakao Bank's listing-day performance certainly exceeds expectations.The opening price has risen by 38% compared to the offering price, and today's high was ₩68,000, and it currently settles at ₩63,100. This is a 60% increase from the offering price, and the market cap reaches ₩30T.








Kakao Bank today
Price
Market cap
From the offering price


Offering price
₩39,000
₩18.53T
-


Opening price
₩53,700
₩25.51T
37.69%


Daily high
₩68,000
₩32.31T
74.36%


Daily low
₩51,000
₩24.23T
30.77%


Current
₩63,100
₩29.98T
61.79%

Source: KRX

As a result, Kakao Bank has easily surpassed its direct competitors, KB Financial and Shinhan Financial, in market capitalization and is currently ranked 12th in the KOSPI by market capitalization.








KOSPI top 15
Name
Ticker
Market cap


1
Samsung Electronics
005930
₩487.73T


2
SK Hynix
000660
₩85.90T


3
Naver
035420
₩72.60T


4
Kakao
035720
₩64.89T


5
Samsung Electronics 1P
005935
₩61.55T


6
Samsung Biologics
207940
₩60.87T


7
LG Chem
051910
₩59.79T


8
Samsung SDI
006400
₩53.36T


9
Hyundai Motor
005380
₩47.65T


10
Celltrion
068270
₩33.44T


11
Kia
000270
₩34.70T


12
Kakao Bank
323410
₩29.98T


13
POSCO
005490
₩29.95T


14
Samsung C&amp;T
028260
₩26.91T


15
Hyundai Mobis
012330
₩26.26T

Source: KRX

Strong foreign buying this morning
Kakao Bank's share price fell below the opening price early this morning, raising some concerns. However, a strong buying from investors presumed to be foreign institutions came in rapidly through the foreign brokerage counter, mainly Credit Suisse.
As of 11:30 a.m., a purchase order of 6 million shares came in through the CS counter. This is 15% of the total purchase volume, which is an unusually large amount brokered by a foreign brokerage for local stocks any given day.
Therefore, the proportion of net buying by foreign investors is currently overwhelmingly high.


Kakao Bank, Apparently Passive Money Flowing in This Morning

<div><p>Kakao Bank (KB), South Korea’s largest digital bank, raised up to US$2.2bn in its South Korean IPO. Kakao will hold a 27.26% stake post listing. The share will begin to trade on 6th Aug 2021.</p></div><div><p>Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea. KB’s loans have grown by 138% over 2018 to 1Q21 to reach KRW21.6tn, while its deposits have grown by 197% over the same period to reach KRW24.2tn. </p></div><div><p>Over 2018-20, its total income (Net interest income plus net fee income) grew by 216%, while it went from booking a loss in 2018 to reporting a 26% profit margin by 2020. KB’s total income was up another 60% YoY in 1Q21, while PAT was up 153% YoY.</p></div><div><p>We have covered various aspects of the deal in our previous notes, <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-riding-on-parent-s-network-but-boundaries-with-kakao-pay-remain-unclear" target="_blank" rel="noopener">Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear</a>, <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-pricey-as-it-should-be" target="_blank" rel="noopener">Kakao Bank IPO - Pricey as It Should Be </a>and <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-lack-of-lock-up-and-msci-ftse-index-implications" target="_blank" rel="noopener">Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications</a>.</p></div><div><p>In this note, we will talk about the deal's trading dynamics.</p></div>

Kakao Bank (KB), South Korea’s largest digital bank, raised up to US$2.2bn in its South Korean IPO. Kakao will hold a 27.26% stake post listing. The share will begin to trade on 6th Aug 2021.Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea. KB’s loans have grown by 138% over 2018 to 1Q21 to reach KRW21.6tn, while its deposits have grown by 197% over the same period to reach KRW24.2tn. Over 2018-20, its total income (Net interest income plus net fee income) grew by 216%, while it went from booking a loss in 2018 to reporting a 26% profit margin by 2020. KB’s total income was up another 60% YoY in 1Q21, while PAT was up 153% YoY.We have covered various aspects of the deal in our previous notes, Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear, Kakao Bank IPO - Pricey as It Should Be and Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications.In this note, we will talk about the deal's trading dynamics.

Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers

South Korea

Kakao Pay Corp. operates financial businesses. The Company provides online payment, currency encryption, and other services. Kakao Pay conducts businesses in South Korea.

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Kakaopay (377300 KS)

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