Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>Yanolja is getting ready to complete its IPO in the US in the next several months. Softbank invested about US$1.7 billion in Yanolja in 2021.</li>
<li>The valuation of Yanolja could be between US$7 billion to US$9 billion. The company could raise nearly US$400 million in this IPO. </li>
<li>Overall, we are concerned about the valuations of Yanolja if indeed the bankers push ahead with the IPO at the valuation range of US$7 billion to US$9 billion.</li>
</ul>


Yanolja is getting ready to complete its IPO in the US in the next several months. Softbank invested about US$1.7 billion in Yanolja in 2021.
The valuation of Yanolja could be between US$7 billion to US$9 billion. The company could raise nearly US$400 million in this IPO. 
Overall, we are concerned about the valuations of Yanolja if indeed the bankers push ahead with the IPO at the valuation range of US$7 billion to US$9 billion.


Private Capital Markets

<ul>
<li>Yanolja is the largest travel app in Korea and it is also considered to be the second largest property management software provider in the world after Oracle.</li>
<li>In July 2021, Softbank Group Corp's Vision Fund II agreed to invest $1.7 billion in Yanolja, for a 25% stake in the company.</li>
<li>Yanoljia is a well known app for booking hotels in Korea. The company's business model has expanded to providing property management software products and services.</li>
</ul>


Yanolja is the largest travel app in Korea and it is also considered to be the second largest property management software provider in the world after Oracle.
In July 2021, Softbank Group Corp's Vision Fund II agreed to invest $1.7 billion in Yanolja, for a 25% stake in the company.
Yanoljia is a well known app for booking hotels in Korea. The company's business model has expanded to providing property management software products and services.


Yanolja: Largest Travel App in Korea & Second Largest Property Management SaaS Provider Globally

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In this insight, we provide further details of Yanolja which has become the second largest investment for Softbank in Korea, after Coupang. In July 2021, Softbank Group Corp's Vision Fund II agreed to invest $1.7 billion in <a href="https://www.bloomberg.com/news/articles/2021-07-15/softbank-invests-1-7-billion-in-korea-s-yanolja-ahead-of-ipo" target="_blank" rel="noopener">Yanolja, </a>which is getting ready for an IPO in 2H 2021/2022.
Established in 2005, Yanolja is considered to be the second largest property management software provider in the world after Oracle. Yanolja plans to use the investment to expand overseas and further invest in improving its technologies. Softbank's investment in Yanolja valued the company at about <a href="https://www.edaily.co.kr/news/read?newsId=01095526629143384&amp;mediaCodeNo=257&amp;OutLnkChk=Y" target="_blank" rel="noopener">9 trillion won</a> ($8 billion). Currently, Yanolja has about 1,500 employees, including about 1,000 employees in Korea and 500 employees overseas. 
<a href="http://www.theinvestor.co.kr/view.php?ud=20190612000473" target="_blank" rel="noopener">Yanolja</a> became a unicorn in June 2019 when it received a $180 million Series D round investment valuing the company at more than $1 billion. It is astounding how this company's valuation has jumped nearly 8x in the past two years. In addition to Softbank, other investors in Yanolja include GIC, Booking Holdings, Skylake Investments, <a href="https://www.smartkarma.com/entities/sbi-investment-korea-co-ltd" target="_blank" data-smartkarma-citation="entities:17244:1" rel="noopener">Sbi Investment Korea (019550 KS)</a>, and Aju IB Investments.
Softbank's recent investment in Yanolja would suggest a P/S multiple of 31x, which is very high. In November 2020, Yanolja selected <a href="https://www.bloomberg.com/quote/006800:KS" target="_blank" rel="noopener">Mirae Asset Daewoo Co.</a> as a lead arranger along with <a href="https://www.bloomberg.com/quote/016360:KS" target="_blank" rel="noopener">Samsung Securities Co.</a> as a co-underwriter. The company has yet to determine whether it would list in the U.S. or in Korea.
</div>


In this insight, we provide further details of Yanolja which has become the second largest investment for Softbank in Korea, after Coupang. In July 2021, Softbank Group Corp's Vision Fund II agreed to invest $1.7 billion in Yanolja, which is getting ready for an IPO in 2H 2021/2022.
Established in 2005, Yanolja is considered to be the second largest property management software provider in the world after Oracle. Yanolja plans to use the investment to expand overseas and further invest in improving its technologies. Softbank's investment in Yanolja valued the company at about 9 trillion won ($8 billion). Currently, Yanolja has about 1,500 employees, including about 1,000 employees in Korea and 500 employees overseas. 
Yanolja became a unicorn in June 2019 when it received a $180 million Series D round investment valuing the company at more than $1 billion. It is astounding how this company's valuation has jumped nearly 8x in the past two years. In addition to Softbank, other investors in Yanolja include GIC, Booking Holdings, Skylake Investments, Sbi Investment Korea (019550 KS), and Aju IB Investments.
Softbank's recent investment in Yanolja would suggest a P/S multiple of 31x, which is very high. In November 2020, Yanolja selected Mirae Asset Daewoo Co. as a lead arranger along with Samsung Securities Co. as a co-underwriter. The company has yet to determine whether it would list in the U.S. or in Korea.


Why Did Softbank Invest $1.7 Billion in Yanolja in Korea?

Thematic (Sector/Industry)

<a href="https://www.smartkarma.com/entities/14560" target="_blank" data-smartkarma-citation="entities:14560">Mirae Asset Securities Co., Ltd.</a>  has emerged as the third major financial consortium to be interested in potentially acquiring <a href="https://www.smartkarma.com/entities/20637" target="_blank" data-smartkarma-citation="entities:20637">Hyundai Securities Co</a>, the fifth largest securities company in Korea. There are other major companies interested in acquiring <a href="https://www.smartkarma.com/entities/20637" target="_blank" data-smartkarma-citation="entities:20637">Hyundai Securities Co</a> including <a href="https://www.smartkarma.com/entities/14839" target="_blank" data-smartkarma-citation="entities:14839">Korea Investment Holdings Co., Ltd.</a> and <a href="https://www.smartkarma.com/entities/718" target="_blank" data-smartkarma-citation="entities:718">Kb Financial Group Inc</a> . With the recent acquisition of <a href="https://www.smartkarma.com/entities/12061" target="_blank" data-smartkarma-citation="entities:12061">Daewoo Securities Co Ltd</a> , <a href="https://www.smartkarma.com/entities/14560" target="_blank" data-smartkarma-citation="entities:14560">Mirae Asset Securities Co., Ltd.</a> has become the largest securities company in Korea. <a href="https://www.smartkarma.com/entities/14560" target="_blank" data-smartkarma-citation="entities:14560">Mirae</a>…

Mirae Asset Securities Co., Ltd.  has emerged as the third major financial consortium to be interested in potentially acquiring Hyundai Securities Co, the fifth largest securities company in Korea. There are other major companies interested in acquiring Hyundai Securities Co including Korea Investment Holdings Co., Ltd. and Kb Financial Group Inc . With the recent acquisition of Daewoo Securities Co Ltd , Mirae Asset Securities Co., Ltd. has become the largest securities company in Korea. Mirae…

Mirae Asset Securities + Hyundai Securities = Genghis Khan of Korea Securities Sector

South Korea

SBI Investment Korea Co., Ltd. invests in emerging companies with high growth potential through equities.  The Company also offers management and technical services to small and medium-sized companies, and provides consulting services.

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Sbi Investment Korea (019550 KS)

Initial Thoughts on the Yanolja IPO

Yanolja is getting ready to complete its IPO in the US in the next several months. The valuation could be between US$7 billion to US$9 billion....

Douglas Kim

Yanolja: Largest Travel App in Korea & Second Largest Property Management SaaS Provider Globally

Yanolja is the largest travel app in Korea and it is also considered to be the second largest property management software provider in the world...

Douglas Kim

Why Did Softbank Invest $1.7 Billion in Yanolja in Korea?

We provide further details of Yanolja which has become the second largest investment for Softbank in Korea. In July 2021, Softbank Group Corp's...

Douglas Kim

Mirae Asset Securities + Hyundai Securities = Genghis Khan of Korea Securities Sector

Mirae Asset Securities Co., Ltd. has emerged as the third major financial consortium to be interested in potentially acquiring Hyundai Securities...

Douglas Kim

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