Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Sebit Chem had excellent IPO book building results. The demand ratio from the institutional investors was 1,671 to 1. </li>
<li>The IPO price has been determined at 35,000 won, which is higher than the high end of the IPO price range (25,000 won to 30,000 won).</li>
<li>Our base case valuation is implied market cap of 256 billion won or target price of 50,775 won per share (45% higher than the IPO price of 35,000 won). </li>
</ul>


Sebit Chem had excellent IPO book building results. The demand ratio from the institutional investors was 1,671 to 1. 
The IPO price has been determined at 35,000 won, which is higher than the high end of the IPO price range (25,000 won to 30,000 won).
Our base case valuation is implied market cap of 256 billion won or target price of 50,775 won per share (45% higher than the IPO price of 35,000 won). 


<ul>
<li>Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range. </li>
<li>Sebit Chem's business is now mainly composed of recycling waste rechargeable batteries and waste acid (mostly from semiconductor and LCD related products).</li>
<li>Our base case valuation is based on 23.7x P/E (comps' average) using our estimated net profit of 10.8 billion won in 2023. </li>
</ul>


Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range. 
Sebit Chem's business is now mainly composed of recycling waste rechargeable batteries and waste acid (mostly from semiconductor and LCD related products).
Our base case valuation is based on 23.7x P/E (comps' average) using our estimated net profit of 10.8 billion won in 2023. 


<ul>
<li>Sebit Chem is getting ready to complete its IPO in early August. The IPO price range is from 25,000 won to 30,000 won.</li>
<li>The IPO base deal size is from US$21 million to US$25 million. The expected market cap after the IPO is from 126 billion won to 151 billion won.</li>
<li>Sebit Chem is one of the competitors to Sungeel Hitech which completed a very successful IPO book building. Sebit Chem is also likely to enjoy strong demand among many investors. </li>
</ul>


Sebit Chem is getting ready to complete its IPO in early August. The IPO price range is from 25,000 won to 30,000 won.
The IPO base deal size is from US$21 million to US$25 million. The expected market cap after the IPO is from 126 billion won to 151 billion won.
Sebit Chem is one of the competitors to Sungeel Hitech which completed a very successful IPO book building. Sebit Chem is also likely to enjoy strong demand among many investors. 


Sebit Chem IPO Preview - A Major Competitor to Sungeel Hitech in Rechargeable Batteries Recycling

South Korea

SaraminHR Co.,Ltd. operates a website that offers a wide range of services. The Company offers an online job search, consulting, IT outsourcing, office lease and online information providing services.

Orbitech Co., Ltd. provides a variety of testing services. The Company's products includenondestructive engineering testing services, water and soil quality testing services, and radiation monitoring services.

Heerim Architects & Planners designs and inspects buildings, residential houses and infrastructure such as highways, airports, and bridges.  The Company also provides geological surveys and environmental assessment.

Nice D&B Co., Ltd. provides global business information report services. The Compay's services also incudes supplier management solution, risk management solution, and credit risk management system.

DT&C.Co.,Ltd provides certifications from FCC, CE, TELEC, C-Tick through their testing sites.  The Company provides services various industries from automobile parts to medical devices.

MiraeING Co., Ltd. manufactures closed circuit television (CCTV) cameras and systems, radio transceivers and repeaters, radio communication systems, and other security systems.  The Company markets its products to the Korean Ministry of National Defense, the Korean National Police, the security industry, and the telecommunications industry.

Y-Entec Co., Ltd. provides hazardous waste disposal services.  The Company disposes hazardous waste by burning and reclamation.  Y-Entec also operates a construction business, and sells construction materials.

Koryo Credit Information Co., Ltd. provides a variety of financial solution services to individuals and corporations.  The Company's services include debt collection, credit research and analysis, and related documents issuing.  Koryo Credit Information also operates real estate leasing business.

NICE Total Cash Management Co., Ltd. is a full service provider for cash dispenser (CD) and automated teller machine (ATM) of financial institutions.

KTCS Corporation operates 114 phone directory assist service, phone Data Base management service, call center, and other telecommunication services.

Will Group Inc. provides employee placement and staffing services. The Company offers outsourcing services for sales, call center, and manufacturing positions.

ARTNER CO.,LTD provides technical outsourcing services through dispatching technical talents to contracted company. The company focused on machinery design, electricity and electronic design, software development.

ASIA AIR SURVEY CO., LTD. is an aerial survey contractor providing environmental assessments, mapping services, and power line inspections.  The Company also provides consultation in various types of construction work.  Asia Air Survey is affiliated with Mitsui & Co.

SHL-JAPAN Ltd. makes aptitude test products.  The Company also provides training and consulting services for aptitude test data.

The Brooker Group Public Company Limited provides business consulting, market research, policy research, sector reports and on-line publication services for companies in Thailand and ASEAN countries.

TANABE MANAGEMENT CONSULTING CO., LTD. is a management consulting firm. The Company provides seminars and training to its business clients.  Tanabe Management Consulting operates membership management clubs, the Eagle Club, holds study meetings, and issues publications to the club members.  The Company also sells notebooks for business use.

LUCKLAND Co., Ltd. designs, constructs, and maintains commercial building facilities.  The Company specializes in food store construction.  Luckland also builds supermarkets, discount stores, restaurants, and delicatessen. In addition, the Company manufactures and sells kitchen equipment including commercial refrigerators and garbage disposers.

IR Japan Holdings Ltd is a holding company of IR Japan, Inc. The Company manages operation for its subsidiary. IR Japan,Inc. provides consulting services in rega rd to relationships with shareholders and investors in general. IR Japan also assists with the releasing of company filings.

PASCO CORPORATION is a surveying company specializing in aerial photographs. The Company computerizes surveyed data and conducts information system engineering.

S-Pool, Inc. provides outsourcing services including providing temporary staffing and performing contract work.  The Company also conducts market research and plans sales promotion for mobile and consumer maker companies.

Sebitchem Co., Ltd. operates as a wastewater treatment chemicals recycling company. The Company provides waste acid recycling, phosphoric acid production, waste anode material and waste battery decomposition, active materials purification and separation, and precursor complex solutions sale services. Sebitchem markets its products worldwide.

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Sebitchem (107600 KS)

Sebit Chem IPO Book Building Results

Sebit Chem had excellent IPO book building results. The demand ratio from the institutional investors was 1,671 to 1. The IPO price has been...

Douglas Kim

Sebit Chem Valuation Analysis

Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range.

Douglas Kim

Sebit Chem IPO Preview - A Major Competitor to Sungeel Hitech in Rechargeable Batteries Recycling

Sebit Chem is one of the competitors to Sungeel Hitech which completed a very successful IPO book building. Sebit Chem is also likely to enjoy...

Douglas Kim

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