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

<ul>
<li>Hyundai Oilbank, this year's biggest fish, dropped the IPO. Another big fish, CJ Olive Young, also officially announced that it would give up its listing.</li>
<li>The bookbuilding results of SOCAR turned out to be disastrous, suggesting an increased possibility that a higher-than-typical flow level will likely be seen in WCP and K Bank. </li>
<li>In particular, despite the valuation issues, we should pay attention to the possibility of an unexpected level of local institutional flows flocking to WCP, which has less schedule risk.</li>
</ul>


Hyundai Oilbank, this year's biggest fish, dropped the IPO. Another big fish, CJ Olive Young, also officially announced that it would give up its listing.
The bookbuilding results of SOCAR turned out to be disastrous, suggesting an increased possibility that a higher-than-typical flow level will likely be seen in WCP and K Bank. 
In particular, despite the valuation issues, we should pay attention to the possibility of an unexpected level of local institutional flows flocking to WCP, which has less schedule risk.


Messed up Korea IPO Pipeline and Unexpected Beneficiaries

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this insight, we discuss a pair trade between E Mart Inc (long) and Coupang (short). At current valuations and business outlook, we like the risk/reward of this pair trade.</li>
<li>The end of the mandatory shut down rules on major hypermarkets is likely to have a major positive impact on Emart and negative impact on Coupang and Kurly.</li>
<li>Although this has not been made into law, we think there is relatively high probability that this will eventually be made into law sometime this year. </li>
</ul>


In this insight, we discuss a pair trade between E Mart Inc (long) and Coupang (short). At current valuations and business outlook, we like the risk/reward of this pair trade.
The end of the mandatory shut down rules on major hypermarkets is likely to have a major positive impact on Emart and negative impact on Coupang and Kurly.
Although this has not been made into law, we think there is relatively high probability that this will eventually be made into law sometime this year. 


A Pair Trade Between Emart & Coupang (Potential End of Mandatory Shut Down Rules for Hypermarkets)

Private Capital Markets

<ul>
<li>Kurly is the number one player in Korea focusing on e-commerce of fresh foods. Kurly's most recent valuation was about 4 trillion won in December 2021.</li>
<li>Coupang is trading at P/S and P/GP multiples of 1.2x and 7.4x (2021), respectively. Using these valuation multiples, Kurly's valuation would be from 1.9 trillion won to 2.2 trillion won.</li>
<li>These valuations would represent nearly half of the 4 trillion won in private market valuation it received in December 2021.</li>
</ul>


Kurly is the number one player in Korea focusing on e-commerce of fresh foods. Kurly's most recent valuation was about 4 trillion won in December 2021.
Coupang is trading at P/S and P/GP multiples of 1.2x and 7.4x (2021), respectively. Using these valuation multiples, Kurly's valuation would be from 1.9 trillion won to 2.2 trillion won.
These valuations would represent nearly half of the 4 trillion won in private market valuation it received in December 2021.


Kurly: A Market Leader in Fresh Foods E-Commerce Market in Korea

<ul>
<li>Kurly's management team needs to drastically lower its valuation expectation in this difficult market environment.</li>
<li>Due to weak market conditions, it is likely to have a difficult time completing this IPO if its valuation is stretched to about 6 trillion won to 7 trillion won. </li>
<li>In our view, the company could complete its IPO if the valuation is close to about 3.5 trillion won to 4.5 trillion won. </li>
</ul>


Kurly's management team needs to drastically lower its valuation expectation in this difficult market environment.
Due to weak market conditions, it is likely to have a difficult time completing this IPO if its valuation is stretched to about 6 trillion won to 7 trillion won. 
In our view, the company could complete its IPO if the valuation is close to about 3.5 trillion won to 4.5 trillion won. 


Kurly's Mgmt Needs to Drastically Lower Valuation Expectations to Complete IPO in Next 6 Months

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.

Life Insurance  of India / Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>This week we looked at the South Korean SK twins that are looking to list. In addition, LIC appears to be testing waters again.</li>
<li>Placement flows slowed down a bit with the mid-week HK holiday, although Australia and India blocks have continued to flow-in.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
This week we looked at the South Korean SK twins that are looking to list. In addition, LIC appears to be testing waters again.
Placement flows slowed down a bit with the mid-week HK holiday, although Australia and India blocks have continued to flow-in.


ECM Weekly (10th Apr 2022)- LIC, GoTo, Shieldus, One Store, China ADRs, Air NZ, Chrysos, Zhihu

South Korea

Kurly Inc. wholesales and distributes food products. The Company wholesales and distributes fresh food, processed food, and other related products. Kurly markets its products throughout South Korea.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Kurly Inc (1653187D KS)

Messed up Korea IPO Pipeline and Unexpected Beneficiaries

This post investigates Korea's messed-up IPO pipeline situation and discusses who will be unexpected beneficiaries after the SOCAR bookbuilding...

Sanghyun Park

A Pair Trade Between Emart & Coupang (Potential End of Mandatory Shut Down Rules for Hypermarkets)

The end of the mandatory shut down rules on major hypermarkets is likely to have a major positive impact on Emart and negative impact on Coupang...

Douglas Kim

Kurly: A Market Leader in Fresh Foods E-Commerce Market in Korea

Kurly is the number one player in Korea focusing on e-commerce of fresh foods in Korea. Kurly's most recent valuation was about 4 trillion won in...

Douglas Kim

Kurly's Mgmt Needs to Drastically Lower Valuation Expectations to Complete IPO in Next 6 Months

Kurly's management team needs to drastically lower its valuation expectation in this difficult market environment if it wants to complete its IPO...

Douglas Kim

ECM Weekly (10th Apr 2022)- LIC, GoTo, Shieldus, One Store, China ADRs, Air NZ, Chrysos, Zhihu

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)