Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p><strong><a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games (1404796D KS)</a> is attempting to complete its IPO in 2H 2020.</strong> Kakao Games and <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (1486402D KS)</a> are two major game-related IPOs that are expected in 2H 2020. In the last week of April, Kakao Games announced that it plans to complete its IPO by the end of this year. Kakao Games hired Samsung Securities and Korea Investment &amp; Securities to be the lead underwriters of this IPO.</p><p><strong>Kakao Games is a leading game publisher in Korea with a focus on mobile and PC online games.</strong> As a game publisher, it is known for <em>Black Desert online</em> (serviced in North America and Europe), a successful MMORPG in the global market, and <em>Player Unknown's Battlegrounds</em> (serviced in Korea). </p><p>Kakao Games is currently offering games such as <em>Battlegrounds, Pass of Exile, and Princess Connect Re-dive.</em> Kraftton's <em>Air (A:IR)</em> is also scheduled to be launched soon. Kakao Games core business remains game publishing. However, the company is trying to expand its own game development and its recent numerous acquisitions of game developers are a strong sign of the company's aggressive expansion in this area. </p>

Kakao Games (1404796D KS) is attempting to complete its IPO in 2H 2020. Kakao Games and  Krafton Inc (1486402D KS) are two major game-related IPOs that are expected in 2H 2020. In the last week of April, Kakao Games announced that it plans to complete its IPO by the end of this year. Kakao Games hired Samsung Securities and Korea Investment &amp; Securities to be the lead underwriters of this IPO.Kakao Games is a leading game publisher in Korea with a focus on mobile and PC online games. As a game publisher, it is known for Black Desert online (serviced in North America and Europe), a successful MMORPG in the global market, and Player Unknown's Battlegrounds (serviced in Korea). Kakao Games is currently offering games such as Battlegrounds, Pass of Exile, and Princess Connect Re-dive. Kraftton's Air (A:IR) is also scheduled to be launched soon. Kakao Games core business remains game publishing. However, the company is trying to expand its own game development and its recent numerous acquisitions of game developers are a strong sign of the company's aggressive expansion in this area. 

<div class="content-highlight"><p><strong><a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener">Krafton Inc (1486402D KS)</a> is one of the most anticipated IPOs in Korea in 2020.</strong> The local media recently have mentioned that Krafton's market cap could be more than 5 trillion won. Krafton is one of the leading game companies in Korea. </p></div><p>Krafton Chairman Chang Byung-Kyu founded a company called <strong>Bluehole Studio</strong> in 2007. He was previously one of the founders of Neowiz in 1997. On 5 November 2018, a new company called <strong>Krafton Game Union</strong> was launched that would serve as the parent company for Bluehole and its subsidiaries. </p><p>In April 2020, <a href="https://www.etnews.com/20200421000342" target="_blank" rel="noopener">Neptune</a> sold 80,000 shares of Krafton for 46.4 billion won (580,000 won per share). This is nearly 19x higher the price of 30,000 won per share it paid for in early 2017. Post this sale, Neptune still has 86,666 shares of Krafton. Neptune will use the new funds for M&amp;A and new game content development. <strong>Neptune's latest sale of 80,000 shares of Krafton would value the company at 4.7 trillion won ($3.8 billion).</strong></p>

Krafton Inc (1486402D KS) is one of the most anticipated IPOs in Korea in 2020. The local media recently have mentioned that Krafton's market cap could be more than 5 trillion won. Krafton is one of the leading game companies in Korea. Krafton Chairman Chang Byung-Kyu founded a company called Bluehole Studio in 2007. He was previously one of the founders of Neowiz in 1997. On 5 November 2018, a new company called Krafton Game Union was launched that would serve as the parent company for Bluehole and its subsidiaries. In April 2020, Neptune sold 80,000 shares of Krafton for 46.4 billion won (580,000 won per share). This is nearly 19x higher the price of 30,000 won per share it paid for in early 2017. Post this sale, Neptune still has 86,666 shares of Krafton. Neptune will use the new funds for M&amp;A and new game content development. Neptune's latest sale of 80,000 shares of Krafton would value the company at 4.7 trillion won ($3.8 billion).

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.

Event-Driven

<p>Krafton has finally reached its IPO price. Krafton is again up 5% today.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/891/original/1.png?1629353317" class="editor-image img-responsive" data-smartkarma-image-id="224891"></figure></section><p><strong>Below is the net trade by investor type for 6 days since the listing of Krafton, including yesterday's data. The net buying of local pension continued yesterday as well. This should also be seen as a rebalancing trading of the KOSPI 200.</strong> Another thing to note is that foreign buys continue. Apparently, foreign investors are flowing in for short-term momentum trading.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/895/original/5.png?1629354386" class="editor-image img-responsive" data-smartkarma-image-id="224895"></figure><p></p></section><p><strong>Below is the provisional aggregated data as of 2:25 local time. Again, the local pension net buys 52,000 shares today, a similar size of rebalancing trading to yesterday.</strong></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/893/original/3.png?1629354063" class="editor-image img-responsive" data-smartkarma-image-id="224893"></figure></section><div class="content-highlight"><p><strong>What we should pay attention to in today's trading trend is the return of local retail investors. They net sold for the past three consecutive trading days. But they are estimated to have recorded a net purchase of 70,000-80,000 shares today.</strong></p></div>

Krafton has finally reached its IPO price. Krafton is again up 5% today.Below is the net trade by investor type for 6 days since the listing of Krafton, including yesterday's data. The net buying of local pension continued yesterday as well. This should also be seen as a rebalancing trading of the KOSPI 200. Another thing to note is that foreign buys continue. Apparently, foreign investors are flowing in for short-term momentum trading.Below is the provisional aggregated data as of 2:25 local time. Again, the local pension net buys 52,000 shares today, a similar size of rebalancing trading to yesterday.What we should pay attention to in today's trading trend is the return of local retail investors. They net sold for the past three consecutive trading days. But they are estimated to have recorded a net purchase of 70,000-80,000 shares today.

Krafton Today: KOSPI 200 Rebalancing Trading Continues + Local Retail Re-Entry

<p>Krafton's share price is approaching its IPO price. Today alone, it is up 4%.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/616/original/Screen+Shot+2021-08-18+at+3.05.36+AM.png?1629270353" class="editor-image img-responsive" data-smartkarma-image-id="224616"></figure></section><p><strong>If we look at the trading data for the past 5 days, we can see a typical rebalancing trading of the KOSPI 200.</strong> The three major players in KOSPI 200 trading are pensions, insurance, and local publicly-raised funds. And they have been buying Krafton for the past five days.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/594/original/Screen+Shot+2021-08-18+at+2.06.35+AM.png?1629266839" class="editor-image img-responsive" data-smartkarma-image-id="224594"></figure></section><div class="content-highlight"><p><strong>Even today, if we look at the provisional aggregate data provided by the KRX, the buying of local pension funds continues. As of 2:30 pm (in local time) today, it was counted that local pension funds were making a net buy of about 30,000 shares.</strong></p></div>

Krafton's share price is approaching its IPO price. Today alone, it is up 4%.If we look at the trading data for the past 5 days, we can see a typical rebalancing trading of the KOSPI 200. The three major players in KOSPI 200 trading are pensions, insurance, and local publicly-raised funds. And they have been buying Krafton for the past five days.Even today, if we look at the provisional aggregate data provided by the KRX, the buying of local pension funds continues. As of 2:30 pm (in local time) today, it was counted that local pension funds were making a net buy of about 30,000 shares.

Checking Passive Flow Trading for Krafton

<p>Krafton is showing a roller coaster share price this morning on its first trading day.</p><div class="content-highlight"><p><strong>As soon as the trading started, Krafton's stock price fell below ₩403,500, triggering a downward static VI (volatility interruption). And as the stock price rose sharply back to ₩480,000 within 4 minutes of the start of trading, triggering an upward static VI.</strong></p></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/223/035/original/2.png?1628565638" class="editor-image img-responsive" data-smartkarma-image-id="223035"></figure><p></p></section><p>The starting price was set at ₩448,500, down 9.94% from the offering price of ₩498,000. And today's high was ₩480,00 (-3.61% from the offering price), and the low was ₩400,500 (-19.58%).</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<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>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering price"}'>Offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":498000}' data-sheets-numberformat='[null,4,"[$₩-412]#,##0"]'>₩498,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":24.35123886}' data-sheets-numberformat='[null,2,"₩#,##0.00T",1]' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩24.35T</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Opening price"}'>Opening price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":448500}' data-sheets-numberformat='[null,4,"[$₩-412]#,##0"]'>₩448,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":21.930784395}' data-sheets-numberformat='[null,2,"₩#,##0.00T",1]' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩21.93T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.09939759036144578}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">-9.94%</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":480000}' data-sheets-numberformat='[null,4,"[$₩-412]#,##0"]'>₩480,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":23.4710736}' data-sheets-numberformat='[null,2,"₩#,##0.00T",1]' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩23.47T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.03614457831325301}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">-3.61%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily low"}'>Daily low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":400500}' data-sheets-numberformat='[null,4,"[$₩-412]#,##0"]'>₩400,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":19.583677035}' data-sheets-numberformat='[null,2,"₩#,##0.00T",1]' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩19.58T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.19578313253012047}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">-19.58%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":437500}' data-sheets-numberformat='[null,4,"[$₩-412]#,##0"]'>₩445,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":21.392905625}' data-sheets-numberformat='[null,2,"₩#,##0.00T",1]' data-sheets-formula="=R[0]C[-1]*R1C5/1000000000000">₩21.74T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.1214859437751004}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C[-2]-R2C2)/R2C2">-12.15%</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

Krafton is showing a roller coaster share price this morning on its first trading day.As soon as the trading started, Krafton's stock price fell below ₩403,500, triggering a downward static VI (volatility interruption). And as the stock price rose sharply back to ₩480,000 within 4 minutes of the start of trading, triggering an upward static VI.The starting price was set at ₩448,500, down 9.94% from the offering price of ₩498,000. And today's high was ₩480,00 (-3.61% from the offering price), and the low was ₩400,500 (-19.58%).








Kakao Bank today
Price
Market cap
From the offering price


Offering price
₩498,000
₩24.35T
-


Opening price
₩448,500
₩21.93T
-9.94%


Daily high
₩480,000
₩23.47T
-3.61%


Daily low
₩400,500
₩19.58T
-19.58%


Current
₩445,500
₩21.74T
-12.15%

Source: KRX



South Korea

Krafton, Inc. operates as a game development company. The Company develops console games, mobile games, computer games, and other related products. Krafton markets its products throughout South Korea.

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Krafton (259960 KS)

Initial Thoughts on the Kakao Games IPO

Kakao Games (1404796D KS) is attempting to complete its IPO in 2H 2020. Kakao Games and Krafton Inc (1486402D KS) are two major game-related IPOs...

Douglas Kim

Initial Thoughts on the Krafton IPO

Krafton Inc (1486402D KS) is one of the most anticipated IPOs in Korea in 2020. The local media recently have mentioned that Krafton's market cap...

Douglas Kim

Krafton Today: KOSPI 200 Rebalancing Trading Continues + Local Retail Re-Entry

This post examines Krafton's another 5% run today by looking at the provisional aggregated trading data by investor type.

Sanghyun Park

Checking Passive Flow Trading for Krafton

Krafton is approaching its IPO price as it is up 4% today alone. This post checks the passive flow trading since the listing, including today, and...

Sanghyun Park

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52-week Range

Market Cap (USDm)

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Initial Thoughts on the Kakao Games IPO

Kakao Games (1404796D KS) is attempting to complete its IPO in 2H 2020. Kakao Games and Krafton Inc (1486402D KS) are two major game-related IPOs...

Douglas Kim

Initial Thoughts on the Krafton IPO

Krafton Inc (1486402D KS) is one of the most anticipated IPOs in Korea in 2020. The local media recently have mentioned that Krafton's market cap...

Douglas Kim

Krafton Today: KOSPI 200 Rebalancing Trading Continues + Local Retail Re-Entry

This post examines Krafton's another 5% run today by looking at the provisional aggregated trading data by investor type.

Sanghyun Park

Checking Passive Flow Trading for Krafton

Krafton is approaching its IPO price as it is up 4% today alone. This post checks the passive flow trading since the listing, including today, and...

Sanghyun Park

Krafton's Share Price Movement Today

This post looks at Krafton's share price movement today, the first trading day, and discusses whether to cut loss at this point or hold the...

Sanghyun Park