Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

MiCo BioMed Co Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/mico-biomed-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:29240:1">MiCo BioMed Co Ltd (214610 KS)</a> is an interesting IPO, capitalizing on the price discount of the KONEX exchange. The IPO price range of this company is from 12,000 won to 15,000 won. This stock is already trading on the KONEX exchange at 24,550 won. As a result, if the IPO is priced at the high end of the IPO price range of 15,000 won, the investors may be able to take immediate profits of nearly 64% (assuming no lock-up period).The IPO is scheduled to take place on October 6th and the institutional investors bookbuilding closes on September 4th so one of the risks include uncertainty in how the stock would perform for about a month prior to the actual IPO date.Our base case valuation of the company suggests an implied market cap of 413 billion won or 22,564 won per share. Our base case valution of 22,564 won per share is 50% higher than the high end of the IPO price range of 15,000 won.

MiCo BioMed Co Ltd (214610 KS) is an interesting IPO, capitalizing on the price discount of the KONEX exchange. The IPO price range of this company is from 12,000 won to 15,000 won. This stock is already trading on the KONEX exchange at 24,550 won. As a result, if the IPO is priced at the high end of the IPO price range of 15,000 won, the investors may be able to take immediate profits of nearly 64% (assuming no lock-up period).The IPO is scheduled to take place on October 6th and the institutional investors bookbuilding closes on September 4th so one of the risks include uncertainty in how the stock would perform for about a month prior to the actual IPO date.Our base case valuation of the company suggests an implied market cap of 413 billion won or 22,564 won per share. Our base case valution of 22,564 won per share is 50% higher than the high end of the IPO price range of 15,000 won.

Mico Biomed IPO Valuation Analysis - Capitalize on the KONEX Exchange Discount

Mico Biomed Co is getting ready for an IPO on the KOSDAQ exchange in the next few weeks. Established in 2009, Mico Biomed is a developer of in-vitro diagnostic medical devices. Mico Biomed was listed on the KONEX microcap exchange in 2015. Mico Biomed is one of the developers of in-vitro diagnostic medical testing devices for COVID-19 in Korea. In February 2020, <a href="http://www.koreaherald.com/view.php?ud=20200205000408" target="_blank" rel="noopener">Mico Biomed</a> announced that has developed a rapid molecular diagnostic system to detect COVID-19 with high sensitivity within an hour. The company generated 21.7 billion won in sales and 2.4 billion won in operating profit in 1H 2020. These results are much better than the recent historical figures from 2017 to 2019. The company had sales of 4.1 billion won and an operating loss of 11.7 billion won in 2019.<div class="content-highlight">The bankers used three companies including <a href="https://www.smartkarma.com/entities/seegene-inc" target="_blank" data-smartkarma-citation="entities:11483:1" rel="noopener">Seegene Inc (096530 KS)</a>, Lab Genomics, and Boditech Med as comparable companies to Mico Biomed. Using their annualized controlling interest net profit in 1Q 2020 and recent prices, the average P/E of the comps is 36.3x. The bankers then estimated Mico Biomed's net profit to be 12.3 billion won in 2022 and discounted to the present using a 15% cost of capital. Applying a P/E of 36.3x to 9.3 billion won and 18.3 million shares outstanding results in an implied price of 18,342 won. Applying an IPO discount range of 18.2% - 34.6% results in an IPO range of 12,000 won to 15,000 won. </div>

Mico Biomed Co is getting ready for an IPO on the KOSDAQ exchange in the next few weeks. Established in 2009, Mico Biomed is a developer of in-vitro diagnostic medical devices. Mico Biomed was listed on the KONEX microcap exchange in 2015. Mico Biomed is one of the developers of in-vitro diagnostic medical testing devices for COVID-19 in Korea. In February 2020, Mico Biomed announced that has developed a rapid molecular diagnostic system to detect COVID-19 with high sensitivity within an hour. The company generated 21.7 billion won in sales and 2.4 billion won in operating profit in 1H 2020. These results are much better than the recent historical figures from 2017 to 2019. The company had sales of 4.1 billion won and an operating loss of 11.7 billion won in 2019.The bankers used three companies including Seegene Inc (096530 KS), Lab Genomics, and Boditech Med as comparable companies to Mico Biomed. Using their annualized controlling interest net profit in 1Q 2020 and recent prices, the average P/E of the comps is 36.3x. The bankers then estimated Mico Biomed's net profit to be 12.3 billion won in 2022 and discounted to the present using a 15% cost of capital. Applying a P/E of 36.3x to 9.3 billion won and 18.3 million shares outstanding results in an implied price of 18,342 won. Applying an IPO discount range of 18.2% - 34.6% results in an IPO range of 12,000 won to 15,000 won. 

South Korea

MiCo BioMed Co., Ltd. manufactures medical equipment. The Company develops and sells medical kits, ultra fast labchip real time polymerase chain reaction equipment, ultrafast real time polymerase chain reaction labchips, and other products. MiCo BioMed conducts businesses in South Korea.

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MiCo BioMed Co Ltd (214610 KS)

Mico Biomed IPO Valuation Analysis - Capitalize on the KONEX Exchange Discount

MiCo BioMed Co Ltd (214610 KS) is an interesting IPO, capitalizing on the price discount of the KONEX exchange. The IPO price range of this company...

Douglas Kim

Mico Biomed IPO Preview

Mico Biomed Co is getting ready for an IPO on the KOSDAQ exchange in the next few weeks. Established in 2009, Mico Biomed is a developer of...

Douglas Kim

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