Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>Although LG Chem may not sell additional stake in LGES this year, over the next 2-3 years, there is a high probability of LG Chem selling some stake in LGES.</li>
<li>On 27 July 2022, 86% stake of LG Energy Solution could be sold, of which 81.8% is owned by LG Chem and the remaining 4.2% is owned by institutional investors/others.</li>
<li>LGES's market share in the global rechargeable battery usage declined significantly from May 2021 to May 2022, due to recent EV disruption at Tesla's Shanghai plant and rise of BYD.</li>
</ul>


Although LG Chem may not sell additional stake in LGES this year, over the next 2-3 years, there is a high probability of LG Chem selling some stake in LGES.
On 27 July 2022, 86% stake of LG Energy Solution could be sold, of which 81.8% is owned by LG Chem and the remaining 4.2% is owned by institutional investors/others.
LGES's market share in the global rechargeable battery usage declined significantly from May 2021 to May 2022, due to recent EV disruption at Tesla's Shanghai plant and rise of BYD.


LG Energy Solution: Potential Sellers Post Lock-Up End, Mkt Share Losses, & LG Chem's Capital Needs

<ul>
<li>Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IE Technology (361610 KS) in a block deal sale.</li>
<li>Premier Partners is trying to dump its shares right after a dead cat bounce in SK IET's share price rise on 5 July.  </li>
<li>Despite the large block deal discount range, we remain negative on the SK IE Technology shares and we would avoid this block deal. Valuations remain expensive.</li>
</ul>


Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IE Technology (361610 KS) in a block deal sale.
Premier Partners is trying to dump its shares right after a dead cat bounce in SK IET's share price rise on 5 July.  
Despite the large block deal discount range, we remain negative on the SK IE Technology shares and we would avoid this block deal. Valuations remain expensive.


Block Deal Sale of SK IE Technology by Premier Partners: Trying to Dump Shares on a Dead Cat Bounce

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

SK IE Technology   / Equity Capital Markets

<ul>
<li>SK IE Technology’s (SKIE) shareholder aims to raise around US$228m via selling their remaining shareholding.</li>
<li>The same shareholder had sold some of their stake earlier in Nov 21. That deal didn’t end up doing well.</li>
<li>In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.</li>
</ul>


SK IE Technology’s (SKIE) shareholder aims to raise around US$228m via selling their remaining shareholding.
The same shareholder had sold some of their stake earlier in Nov 21. That deal didn’t end up doing well.
In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.


SK IE Technology Placement - Last Deal Didn’t Do Well, More Discount and Cleanup Should Help

Private Capital Markets

<ul>
<li>WCP is a leading maker of separators which are key materials used in EV batteries.</li>
<li>WCP is a wholly-owned subsidiary of W-Scope in Japan. At the end of 2021, W-Scope Corp (Japan) owned a 49.7% stake in WCP. </li>
<li>The company is expected to complete its IPO in 2022 and the valuation of WCP is expected to be about 3 trillion won to 4 trillion won.</li>
</ul>


WCP is a leading maker of separators which are key materials used in EV batteries.
WCP is a wholly-owned subsidiary of W-Scope in Japan. At the end of 2021, W-Scope Corp (Japan) owned a 49.7% stake in WCP. 
The company is expected to complete its IPO in 2022 and the valuation of WCP is expected to be about 3 trillion won to 4 trillion won.


WCP: Leading Producer of Separators for EV Batteries in Korea

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Hyundai Oilbank Co Ltd / Equity Capital Markets

<ul>
<li>Except for SOCAR, most major ones will be in the fourth quarter, so local IPO funds' lock-up/pricing strategy should inevitably be intense to adjust the fund flow schedule.</li>
<li>Probably, local institutional investors' SOCAR lock-up will be mostly one month. Or even we should expect some of them to skip SOCAR altogether to focus on Hyundai Oilbank.</li>
<li>Among those not yet applied for a preliminary review, the local street still expects Oasis Market, CJ Olive Young, and Kakao Mobility to complete their listing this year.</li>
</ul>


Except for SOCAR, most major ones will be in the fourth quarter, so local IPO funds' lock-up/pricing strategy should inevitably be intense to adjust the fund flow schedule.
Probably, local institutional investors' SOCAR lock-up will be mostly one month. Or even we should expect some of them to skip SOCAR altogether to focus on Hyundai Oilbank.
Among those not yet applied for a preliminary review, the local street still expects Oasis Market, CJ Olive Young, and Kakao Mobility to complete their listing this year.


Korea IPOs for 2022: 1H Review & 2H Schedules for Flow Clash Risk

South Korea

LG Energy Solution produces and sells batteries. The Company manufactures and sells automobile batteries, small batteries, energy storage system batteries, and other products. LG Energy Solution markets its products worldwide.

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LG Energy Solution (373220 KS)

Block Deal Sale of SK IE Technology by Premier Partners: Trying to Dump Shares on a Dead Cat Bounce

Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IET in a block deal sale. We remain negative...

Douglas Kim

SK IE Technology Placement - Last Deal Didn’t Do Well, More Discount and Cleanup Should Help

SK IE Technology’s (SKIE) shareholder aims to raise around US$228m via selling their remaining shareholding. The last deal didn't do well.

Sumeet Singh

WCP: Leading Producer of Separators for EV Batteries in Korea

WCP is a leading maker of separators which are key materials used in EV batteries. WCP is a wholly-owned subsidiary of W-Scope in Japan.

Douglas Kim

Korea IPOs for 2022: 1H Review & 2H Schedules for Flow Clash Risk

This post reviews the first half of Korea's local IPO market and examines the second-half schedule for flow clash possibilities.

Sanghyun Park

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LG Energy Solution: Potential Sellers Post Lock-Up End, Mkt Share Losses, & LG Chem's Capital Needs

We have a Negative View of LG Energy Solution due to concerns about selling post end of lock-up period, market share losses for EV batteries, and...

Douglas Kim

Block Deal Sale of SK IE Technology by Premier Partners: Trying to Dump Shares on a Dead Cat Bounce

Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IET in a block deal sale. We remain negative...

Douglas Kim

SK IE Technology Placement - Last Deal Didn’t Do Well, More Discount and Cleanup Should Help

SK IE Technology’s (SKIE) shareholder aims to raise around US$228m via selling their remaining shareholding. The last deal didn't do well.

Sumeet Singh

WCP: Leading Producer of Separators for EV Batteries in Korea

WCP is a leading maker of separators which are key materials used in EV batteries. WCP is a wholly-owned subsidiary of W-Scope in Japan.

Douglas Kim

Korea IPOs for 2022: 1H Review & 2H Schedules for Flow Clash Risk

This post reviews the first half of Korea's local IPO market and examines the second-half schedule for flow clash possibilities.

Sanghyun Park