CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<p>We highlight 14 stocks in Asia that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Asian markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or some combination thereof.</p>

We highlight 14 stocks in Asia that look interesting to us based upon our FVMR Methodology. Our research team constantly reviews the Asian markets to try to find interesting ideas based on Fundamentals or Valuation or Momentum or Risk or some combination thereof.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<div class="content-highlight"><p>Our base case valuation of SD Biosensor is 82,021 won, which is 4% lower than the high end of the IPO price range of 85,000 won. Given the lack of upside, we would pass on this IPO. Our base case valuation also represents an implied market cap of 8.6 trillion won, which is based on 15.4x P/E using our estimated net profit of 560 billion won in 2022. Our P/E multiple of 15.4x assumes a 50% premium to <a href="https://www.smartkarma.com/entities/seegene-inc" target="_blank" data-smartkarma-citation="entities:11483:1" rel="noopener">Seegene Inc (096530 KS)</a>'s P/E multiple next year. </p></div><p>We have used only Seegene as a comp to SD Biosensor. We have chosen to exclude other companies such as Thermo Fisher Scientific and Perkin Elmer which the bankers included in their valuation assessment. We do not believe these latter two US based companies are appropriate comps to SD Biosensor mainly because SD Biosensor has only a couple of years of sizable sales and profits whereas Thermo Fisher Scientific and Perkin Elmer have many decades of generating billion dollar plus in sales. </p>

Our base case valuation of SD Biosensor is 82,021 won, which is 4% lower than the high end of the IPO price range of 85,000 won. Given the lack of upside, we would pass on this IPO. Our base case valuation also represents an implied market cap of 8.6 trillion won, which is based on 15.4x P/E using our estimated net profit of 560 billion won in 2022. Our P/E multiple of 15.4x assumes a 50% premium to Seegene Inc (096530 KS)'s P/E multiple next year. We have used only Seegene as a comp to SD Biosensor. We have chosen to exclude other companies such as Thermo Fisher Scientific and Perkin Elmer which the bankers included in their valuation assessment. We do not believe these latter two US based companies are appropriate comps to SD Biosensor mainly because SD Biosensor has only a couple of years of sizable sales and profits whereas Thermo Fisher Scientific and Perkin Elmer have many decades of generating billion dollar plus in sales. 

<div class="content-highlight"><p><a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (SDBIOZ KS)</a> is getting ready for an IPO in Korea next month. SD Biosensor will be one of the largest IPOs in Korea in 2021. The IPO price range is from 66,000 won to 85,000 won. At the high end of the IPO price range, the company will raise 1.3 trillion won. The bookbuilding for the institutional investors starts on 10 June. According to the bankers' valuation, at the high end of the IPO price range, the company would be valued at 8.9 trillion won ($7.9 billion). The lead underwriters of this IPO include NH Investment &amp; Securities and Korea Investment &amp; Securities. </p></div><p>Established in 2010, SD Biosensor is a bio-diagnostic company that provides in vitro diagnostic products. This is one of the biggest companies in Korea in the field of in-vitro diagnostic products. According to the company, it exported <a href="https://www.edaily.co.kr/news/read?newsId=03634246629015792&amp;mediaCodeNo=257&amp;OutLnkChk=Y" target="_blank" rel="noopener">400 million COVID-19 diagnostic kit</a> related products from 2020 to January 2021.</p><p>The company's sales surged from 73 billion won in 2019 to 1,686.2 billion won in 2020. Operating profit also jumped from 1.5 billion won in 2019 to 738.3 billion won in 2020.</p><table class="table table-striped">
<colgroup>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width: 212pt;">Deal Specifics of the SD Bioscience IPO:</td>
<td style="width: 409pt;"> </td>
</tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 409pt;">NH Investment &amp; Securities, Korea Investment &amp; Securities</td>
</tr>
<tr>
<td>Expected IPO price per share: </td>
<td style="width: 409pt;">66,000 won (low)/85,000 won (high)</td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 409pt;">15.55m shares (10.37m new shares; 5.18m old shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 409pt;">US$908m (low);  US$1,170m (high)</td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 409pt;">104.89m shares</td>
</tr>
<tr>
<td>Expected market cap after IPO:</td>
<td style="width: 409pt;">6,923 billion won (low)/8,916 billion won (high)</td>
</tr>
<tr>
<td>Book open: </td>
<td style="text-align: left; width: 409pt;">10-Jun-21</td>
</tr>
<tr>
<td>Book closed:</td>
<td style="text-align: left; width: 409pt;">11-Jun-21</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 409pt;">TBD</td>
</tr>
<tr>
<td>Source: Company data</td>
<td style="width: 409pt;"> </td>
</tr>
</tbody>
</table>

SD Biosensor (SDBIOZ KS) is getting ready for an IPO in Korea next month. SD Biosensor will be one of the largest IPOs in Korea in 2021. The IPO price range is from 66,000 won to 85,000 won. At the high end of the IPO price range, the company will raise 1.3 trillion won. The bookbuilding for the institutional investors starts on 10 June. According to the bankers' valuation, at the high end of the IPO price range, the company would be valued at 8.9 trillion won ($7.9 billion). The lead underwriters of this IPO include NH Investment &amp; Securities and Korea Investment &amp; Securities. Established in 2010, SD Biosensor is a bio-diagnostic company that provides in vitro diagnostic products. This is one of the biggest companies in Korea in the field of in-vitro diagnostic products. According to the company, it exported 400 million COVID-19 diagnostic kit related products from 2020 to January 2021.The company's sales surged from 73 billion won in 2019 to 1,686.2 billion won in 2020. Operating profit also jumped from 1.5 billion won in 2019 to 738.3 billion won in 2020.






Deal Specifics of the SD Bioscience IPO:
 


Lead underwriters of the IPO: 
NH Investment &amp; Securities, Korea Investment &amp; Securities


Expected IPO price per share: 
66,000 won (low)/85,000 won (high)


Number of Shares for IPO:
15.55m shares (10.37m new shares; 5.18m old shares)


IPO base deal size: 
US$908m (low);  US$1,170m (high)


Expected common shares outstanding, fully diluted (post-IPO):  
104.89m shares


Expected market cap after IPO:
6,923 billion won (low)/8,916 billion won (high)


Book open: 
10-Jun-21


Book closed:
11-Jun-21


Listing date: 
TBD


Source: Company data
 




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.

<h2>Offering size</h2><p><a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (137310 KS)</a>, Korea's leading pure-play IVD (In Vitro Diagnostics) company, filed an IPO book yesterday for a KOSPI listing. The company offers 15.55M shares, representing <strong>16.67% of the total shares</strong>, of which <strong>55~75%</strong> will be institutional allocation.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Overview"}'>Offering size</td></tr>
<tr>
<td>Ticker</td>
<td style="text-align: right;">137310</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Bourse"}'>Bourse</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>KOSPI</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Pre-IPO SO"}'><strong>Pre-IPO SO</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":93317753}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>93,317,753</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering"}'><strong>Offering</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15552900}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>15,552,900</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}'><strong>- % of SO</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.16666603620427936}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>16.67%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Institutional allotment"}'>- Institutional allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.55}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>55.00~75.00%</td>
</tr>
<tr><td colspan="2">Source: </td></tr>
</tbody>
</table><h2>Split ratio</h2><p>This is a split offering at a ratio of <strong>66.67% (primary)</strong> and <strong>33.33% (secondary)</strong>. The 33.33% secondary belongs to the major shareholder, Cho Young-sik. As a result, this offering will see a capital increase rate of 11.11%. This IPO is free of any additional option: cornerstone, clawback, or greenshoe.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Split"}'>Split</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Primary %"}'><strong>Primary %</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6666666666666666}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>66.67%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Secondary %"}'><strong>Secondary %</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3333333333333333}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>33.33%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Post-IPO SO"}'>Post-IPO shares outstanding</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":103686353}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>103,686,353 shares</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase rate"}'><strong>Capital increase rate</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11111069080285292}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>11.11%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Dilution"}'>Dilution</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09999965955018207}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>10.00%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Schedule</h2><p><strong>The book opens on June 10</strong> for both local and overseas and runs until June 11. <strong>The allotment will be on June 14</strong> with a final offering price. The subscription follows on June 15.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Book open"}'><strong>Book opens</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44357}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 6. 10</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Allotment"}'><strong>Allotment</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44361}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 6. 14</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Subscription"}'><strong>Subscription</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44362}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 6. 15</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44365}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 6. 18</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Pricing</h2><p>The IPO book features three valuation peers: Seegene, Thermo Fisher Scientific, and Perkin Elmer. Their average FY2020 PER delivers 19.09x, implying <strong>a market cap of ₩11,755.0B</strong> for SD Biosensor. </p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="150">
<col width="150">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Valuation peers"}'>Valuation peers</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"SD Biosensor"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=Terms!R[1]C[0]">SD Biosensor</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Seegene Inc"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Seegene Inc</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Thermo Fisher Scientific Inc."}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Thermo Fisher Scientific Inc.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"PerkinElmer, Inc."}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>PerkinElmer, Inc.</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Earnings (in million): FY2020"}'>Earnings - FY2020</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":615636}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0","3":1}'><strong>₩615.6B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":503147}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0","3":1}'>₩503.1B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6375}' data-sheets-numberformat='{"1":2,"2":"$#,##0.0","3":1}'>$6,375.0M</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":728}' data-sheets-numberformat='{"1":2,"2":"$#,##0.0","3":1}'>$728.0M</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shares (incl. stock options)"}'>Total shares (incl. stock options)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":104892353}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>104,892,353</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":52225994}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>52,225,994</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":393793362}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>393,793,362</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":112061794}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>112,061,794</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"EPS"}'>EPS</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5869.217177347523}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula="=R[-2]C[0]*1000000/R[-1]C[0]"><strong>₩5,869</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9634.04}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩9,634</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16.19}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$16.19</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6.5}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$6.50</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Reference share price"}'>Reference share price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":112067}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'><strong>₩112,067</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":79000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩79,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":456.92}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$456.92</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":135.48}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$135.48</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"PER"}'>PER</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":19.09}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}' data-sheets-formula="=R[1]C[1]"><strong>19.09x</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"8.20x"}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}'>8.20x</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"28.22x"}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}'>28.22x</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"20.86x"}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}'>20.86x</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Average PER"}'>Average PER</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00"}'><strong>-</strong></td>
<td colspan="3" style="text-align: center;" data-sheets-value='{"1":3,"3":19.09}' data-sheets-numberformat='{"1":2,"2":"#,##0.00"}'><strong>19.09x</strong></td>
</tr>
<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p><strong>A 24.15~41.11% discount</strong> sets up an indicative price band of <strong>₩66,000~85,000</strong>, implying a market cap of ₩6.9~8.9T.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Pricing (₩B)"}'>Indicative price band</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Low"}'>Low</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"High"}'>High</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Price (₩)"}'><strong>Price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":66000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩66,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":85000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩85,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Base deal size"}'>Base deal size</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1026.4914}' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000">₩1,026.5B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1321.9965}' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000">₩1,322.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Institutional allotment"}'>- Institutional allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":564.5702700000002}' data-sheets-formula="=R[-1]C[0]*Terms!R12C2">₩564.6B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":727.098075}' data-sheets-formula="=R[-1]C[0]*Terms!R12C2">₩727.1B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'><strong>Implied market cap</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6922.895298}' data-sheets-formula="=R[-3]C[0]*R[-11]C[0]/1000000000"><strong>₩6,922.9B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8915.850005}' data-sheets-formula="=R[-3]C[0]*R[-11]C[-1]/1000000000"><strong>₩8,915.9B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Discount"}'><strong>- Discount</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.41106659409103485}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R7C2-R[-4]C[0])/R7C2"><strong>41.11%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.24152515905663577}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R7C2-R[-4]C[0])/R7C2"><strong>24.15%</strong></td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Offering sizeSD Biosensor (137310 KS), Korea's leading pure-play IVD (In Vitro Diagnostics) company, filed an IPO book yesterday for a KOSPI listing. The company offers 15.55M shares, representing 16.67% of the total shares, of which 55~75% will be institutional allocation.





Offering size

Ticker
137310


Bourse
KOSPI


Pre-IPO SO
93,317,753


Offering
15,552,900


- % of SO
16.67%


- Institutional allotment
55.00~75.00%

Source: 

Split ratioThis is a split offering at a ratio of 66.67% (primary) and 33.33% (secondary). The 33.33% secondary belongs to the major shareholder, Cho Young-sik. As a result, this offering will see a capital increase rate of 11.11%. This IPO is free of any additional option: cornerstone, clawback, or greenshoe.





Split

Primary %
66.67%


Secondary %
33.33%


Post-IPO shares outstanding
103,686,353 shares


Capital increase rate
11.11%


Dilution
10.00%

Source: DART

ScheduleThe book opens on June 10 for both local and overseas and runs until June 11. The allotment will be on June 14 with a final offering price. The subscription follows on June 15.





Timetable

Book opens
2021. 6. 10


Allotment
2021. 6. 14


Subscription
2021. 6. 15


Payment
2021. 6. 18

Source: DART

PricingThe IPO book features three valuation peers: Seegene, Thermo Fisher Scientific, and Perkin Elmer. Their average FY2020 PER delivers 19.09x, implying a market cap of ₩11,755.0B for SD Biosensor. 









Valuation peers
SD Biosensor
Seegene Inc
Thermo Fisher Scientific Inc.
PerkinElmer, Inc.


Earnings - FY2020
₩615.6B
₩503.1B
$6,375.0M
$728.0M


Total shares (incl. stock options)
104,892,353
52,225,994
393,793,362
112,061,794


EPS
₩5,869
₩9,634
$16.19
$6.50


Reference share price
₩112,067
₩79,000
$456.92
$135.48


PER
19.09x
8.20x
28.22x
20.86x


Average PER
-
19.09x

Source: DART

A 24.15~41.11% discount sets up an indicative price band of ₩66,000~85,000, implying a market cap of ₩6.9~8.9T.







Indicative price band
Low
High


Price
₩66,000
₩85,000


Base deal size
₩1,026.5B
₩1,322.0B


- Institutional allotment
₩564.6B
₩727.1B


Implied market cap
₩6,922.9B
₩8,915.9B


- Discount
41.11%
24.15%

Source: DART



SD Biosensor IPO: Offering Detail, Valuation Issue, & Index Fast Entry Possibilities

Event-Driven

KMW and HLB are at the top in both short and loan interests among the KOSDAQ stocks (excluding SillaJen).KMW has a 4.83% short interest (as a % of SO), closely followed by HLB at 4.57%.Not much change in their short interest, but KMW had a substantial weekly increase in its loan interest, +18.42% and +2.18%p. Its loan interest now sits at a whopping 18.42% of the SO.













Top 20 short interest
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Apam Corp
073070
#N/A
2.41%
0.00%
0.00%p
4.09%
0.00%
0.00%p


Sangsangin Co Ltd
038540
50
2.08%
-4.34%
-0.09%p
4.11%
-0.76%
-0.03%p


Toptec Co Ltd
108230
137
2.07%
-1.95%
-0.04%p
4.05%
0.60%
0.02%p


NatureCell Co Ltd
007390
19
1.96%
4.13%
0.08%p
5.31%
-0.76%
-0.04%p


Kuk Il Paper MFG Co Ltd
078130
17
1.92%
3.92%
0.07%p
6.75%
1.77%
0.12%p


Komipharm International Co., Ltd.
041960
128
1.84%
-1.23%
-0.02%p
4.51%
1.30%
0.06%p


BH Co Ltd
090460
45
1.79%
0.30%
0.01%p
4.90%
0.96%
0.05%p


Power Logics
047310
#N/A
1.75%
-0.12%
0.00%p
2.85%
-7.12%
-0.22%p


Innovation For Creative Devices Co Ltd
040910
#N/A
1.73%
-0.92%
-0.02%p
2.83%
0.57%
0.02%p


Korea Alcohol Industrial
017890
#N/A
1.72%
3.37%
0.06%p
2.99%
0.00%
0.00%p


Cancer Rop Co Ltd
180400
#N/A
1.67%
0.00%
0.00%p
1.98%
-0.12%
0.00%p


Curocom Co., Ltd.
040350
#N/A
1.62%
3.46%
0.05%p
2.84%
0.00%
0.00%p


MS Autotech Co Ltd
123040
#N/A
1.50%
0.12%
0.00%p
2.73%
0.00%
0.00%p


Hyundai Bioscience Co Ltd
048410
148
1.49%
-0.67%
-0.01%p
4.50%
1.37%
0.06%p


ACT Co Ltd (Chungcheongbuk-do)
138360
#N/A
1.48%
0.00%
0.00%p
1.98%
0.00%
0.00%p


Orbitech Co Ltd
046120
#N/A
1.46%
-1.78%
-0.03%p
2.04%
0.39%
0.01%p


STCube Inc
052020
78
1.45%
0.82%
0.01%p
3.62%
1.94%
0.07%p


Chemtronics Co Ltd
089010
#N/A
1.45%
-1.14%
-0.02%p
3.23%
-0.21%
-0.01%p

Source: KRX &amp; KOFIA















Top 20 loan balance
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Easy Holdings Co Ltd
035810
113
0.46%
0.58%
0.00%p
8.08%
3.57%
0.28%p


Anterogen Co Ltd
065660
72
0.59%
1.17%
0.01%p
7.44%
-3.19%
-0.25%p


Medipost Co Ltd
078160
42
0.84%
-0.17%
0.00%p
7.36%
1.90%
0.14%p


Intops Co Ltd
049070
#N/A
0.07%
0.00%
0.00%p
7.33%
-28.64%
-2.94%p


Ecopro Co., Ltd.
086520
86
0.74%
-5.99%
-0.05%p
7.04%
1.68%
0.12%p


Kuk Il Paper MFG Co Ltd
078130
17
1.92%
3.92%
0.07%p
6.75%
1.77%
0.12%p


NHN KCP Corp
060250
9
0.09%
23.86%
0.02%p
6.72%
2.53%
0.17%p


Jusung Engineering Co., Ltd.
036930
118
0.42%
-9.99%
-0.05%p
6.52%
2.24%
0.14%p


PearlAbyss Corp
263750
142
0.43%
284.98%
0.32%p
6.52%
394.02%
5.20%p


Seegene Inc
096530
66
0.67%
-2.59%
-0.02%p
6.16%
23.97%
1.19%p


PARTRON Co Ltd
091700
141
1.41%
-26.86%
-0.52%p
6.11%
12.15%
0.66%p


Genic Co Ltd
123330
#N/A
0.33%
0.00%
0.00%p
6.07%
-0.13%
-0.01%p


TSE Co Ltd
131290
#N/A
0.07%
0.00%
0.00%p
5.88%
-11.63%
-0.77%p


MedyTox Inc
086900
41
0.60%
2.17%
0.01%p
5.86%
-0.01%
0.00%p


DAWONSYS CO., LTD
068240
26
0.76%
1.00%
0.01%p
5.86%
-6.62%
-0.41%p


JYP Entertainment Corp
035900
6
0.57%
96.86%
0.28%p
5.84%
-1.89%
-0.11%p


Cafe24 Corp
042000
123
1.21%
10.81%
0.12%p
5.59%
1.83%
0.10%p


L&amp;K Biomed Co Ltd
156100
#N/A
0.05%
53.16%
0.02%p
5.35%
-0.79%
-0.04%p

Source: KRX &amp; KOFIA

In the run-up to the May 3 short-selling resumption, we should probably focus on gainers in loan interest, which often serves as a leading indicator of short-selling.Last week, the biggest gainer was Pearl Abyss, with a 5.2%p increase to 6.52% of the SO. Kyhyoung and KMW follow distantly, with 3.24%p and 2.18%p, respectively.The market seems to be interested in shorting Pearl Abyss on the recent bounce, largely resulting from the stock split event.













Top 20 loan balance gainers
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


PearlAbyss Corp
263750
142
0.43%
284.98%
0.32%p
6.52%
394.02%
5.20%p


Kohyoung Technology Inc
098460
15
1.10%
387.22%
0.87%p
4.04%
405.32%
3.24%p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


Victek Co., Ltd.
065450
#N/A
0.19%
-73.11%
-0.53%p
2.64%
132.44%
1.51%p


Seegene Inc
096530
66
0.67%
-2.59%
-0.02%p
6.16%
23.97%
1.19%p


Ace Technologies Corp.
088800
81
0.82%
-0.75%
-0.01%p
3.67%
40.14%
1.05%p


HLB Life Science Co Ltd
067630
83
1.32%
-1.60%
-0.02%p
4.62%
23.87%
0.89%p


Bosung Power Technology Co., Ltd.
006910
#N/A
1.05%
-0.11%
0.00%p
2.43%
51.56%
0.83%p


Alteogen Inc
196170
74
0.26%
39.89%
0.07%p
3.20%
34.31%
0.82%p


Helixmith Co Ltd
084990
147
0.78%
-0.71%
-0.01%p
4.89%
15.94%
0.67%p


PARTRON Co Ltd
091700
141
1.41%
-26.86%
-0.52%p
6.11%
12.15%
0.66%p


Deutsch Motors Inc
067990
#N/A
0.89%
2.00%
0.02%p
2.81%
29.96%
0.65%p


Kakao Games Corp
293490
122
0.00%
-100.00%
-0.01%p
4.08%
18.68%
0.64%p


Youngsin Metal Industrial
007530
#N/A
0.00%
#DIV/0!
0.00%p
0.98%
171.75%
0.62%p


Eone Diagnomics Genome Center Co Ltd
245620
#N/A
0.32%
127.91%
0.18%p
1.46%
69.18%
0.60%p


Huons Global Co Ltd
084110
#N/A
0.08%
-10.97%
-0.01%p
1.23%
85.37%
0.57%p


FORMETAL CO., LTD.
119500
#N/A
0.00%
#DIV/0!
0.00%p
2.11%
36.06%
0.56%p


LET Co Ltd
297890
#N/A
0.00%
#DIV/0!
0.00%p
0.52%
#DIV/0!
0.52%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Fantagio Corp
032800
#N/A
0.31%
400.00%
0.25%p
0.58%
307.70%
0.44%p

Source: KRX &amp; KOFIA



KOSDAQ Short/Loan Int: Pearl Abyss on Radar for Recent Bounce & Big Names KOSPI Moving

South Korea

Seegene, Inc. manufactures In Vitro Diagnostic (IVD) products mainly through molecular diagnostic method.  The Company provides diagnostic & screening products for cancer, sepsis, influenza and virus infection.

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