Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

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<li>
<strong>Established in 2014, <a href="https://www.smartkarma.com/entities/27423" target="_blank" data-smartkarma-citation="entities:27423:1">S-Fuelcell (SFUEL KS)</a> is a leading company in Korea that mainly provides fuel cell systems and services.</strong> S-Fuelcell IPO is expected to be completed in September 2018. The bankers' IPO price band is from 10,600 won to 14,000 won. The IPO base deal size is from US$18 million to US$24 million. Korea Investment &amp; Securities is the lead banker on this IPO deal. The institutional investors book building starts on September 18th, 2018. </li>
<li>
<a href="https://www.smartkarma.com/entities/17159" target="_blank" data-smartkarma-citation="entities:17159:1">S Energy Co Ltd (095910 KS)</a> is the largest owner of S-Fuelcell Co with a 67.7% stake as of August 27th, 2018.</li>
<li>The bankers used three companies, including <a href="https://www.smartkarma.com/entities/4883" target="_blank" data-smartkarma-citation="entities:4883:1">Cs Wind Corp (112610 KS)</a>, <a href="https://www.smartkarma.com/entities/9506" target="_blank" data-smartkarma-citation="entities:9506:1">Sdn Co Ltd (099220 KS)</a>, and <a href="https://www.smartkarma.com/entities/24385" target="_blank" data-smartkarma-citation="entities:24385:1">EWK Inc. (258610 KS)</a> as comparable companies to S-Fuelcell. They used the annualized net profit from 3Q17 to 2Q18. The comps' average P/E was 21.7x. The bankers then took the annualized net profit of S-Fuelcell from 3Q17 to 2Q18 (3.98 billion won) and applied the average P/E of 21.7x, resulting in a market cap (pre-IPO discount) of 86.4 billion won or 15,044 won. Post the IPO discount of 6.94% to 29.54%, this results in an implied value per share of 10,600 won to 14,000 won. </li>
<li>The company's sales jumped from 5.1 billion won in 2015 to 20.3 billion won in 2017, representing a CAGR of 99.7% during this period. It also generated sales of 14.9 billion won in 1H18, representing 74% of total sales in 2017. The company generated operating margin of 16.2% in 2017 and 14.6% in 1H18. </li>
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Established in 2014, S-Fuelcell (SFUEL KS) is a leading company in Korea that mainly provides fuel cell systems and services. S-Fuelcell IPO is expected to be completed in September 2018. The bankers' IPO price band is from 10,600 won to 14,000 won. The IPO base deal size is from US$18 million to US$24 million. Korea Investment &amp; Securities is the lead banker on this IPO deal. The institutional investors book building starts on September 18th, 2018. 

S Energy Co Ltd (095910 KS) is the largest owner of S-Fuelcell Co with a 67.7% stake as of August 27th, 2018.
The bankers used three companies, including Cs Wind Corp (112610 KS), Sdn Co Ltd (099220 KS), and EWK Inc. (258610 KS) as comparable companies to S-Fuelcell. They used the annualized net profit from 3Q17 to 2Q18. The comps' average P/E was 21.7x. The bankers then took the annualized net profit of S-Fuelcell from 3Q17 to 2Q18 (3.98 billion won) and applied the average P/E of 21.7x, resulting in a market cap (pre-IPO discount) of 86.4 billion won or 15,044 won. Post the IPO discount of 6.94% to 29.54%, this results in an implied value per share of 10,600 won to 14,000 won. 
The company's sales jumped from 5.1 billion won in 2015 to 20.3 billion won in 2017, representing a CAGR of 99.7% during this period. It also generated sales of 14.9 billion won in 1H18, representing 74% of total sales in 2017. The company generated operating margin of 16.2% in 2017 and 14.6% in 1H18. 


S-Fuelcell Co IPO Preview (Part 1) - A Leading Provider of Fuel Cell Systems in Korea

South Korea

S-Energy Co., Ltd. develops and provides total solution for solar photovoltaic including solar cell module such as system design, production, integration, installation, maintenance and remote monitoring and control.  The Company also constructs solar power plant and provides other new and renewable energy.

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S-Fuelcell Co IPO Preview (Part 1) - A Leading Provider of Fuel Cell Systems in Korea

Established in 2014, S-Fuelcell (SFUEL KS) is a leading company in Korea that mainly provides fuel cell systems and services. S-Fuelcell IPO is...

Douglas Kim