Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>After the market close today, Seoul Economic Daily reported that Socar is likely to delay its IPO to later on. </li>
<li>Although Socar has not formally announced that it will delay the IPO, we believe that there is a high probability that the IPO will be postponed. </li>
<li>The overall sentiment on the Socar IPO appears to be negative by many institutional investors, unless the company reduces the IPO price range substantially. </li>
</ul>


After the market close today, Seoul Economic Daily reported that Socar is likely to delay its IPO to later on. 
Although Socar has not formally announced that it will delay the IPO, we believe that there is a high probability that the IPO will be postponed. 
The overall sentiment on the Socar IPO appears to be negative by many institutional investors, unless the company reduces the IPO price range substantially. 


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.

<ul>
<li>It is hard to understand why WCP uses future EBITDA in the peer valuation while all the peers are based on the 1Q22 LTM figures.</li>
<li>Not only that, of the eight valuation peers, only SKIET and Shenzhen Senior Tech are the only ones with sufficient business relevance to WCP.</li>
<li>WCP's intrinsic market cap is ₩2.35T with a price per share of ₩69,141, implying that the bankers' indicative price band is rather at a 15.7-44.6% premium.</li>
</ul>


It is hard to understand why WCP uses future EBITDA in the peer valuation while all the peers are based on the 1Q22 LTM figures.
Not only that, of the eight valuation peers, only SKIET and Shenzhen Senior Tech are the only ones with sufficient business relevance to WCP.
WCP's intrinsic market cap is ₩2.35T with a price per share of ₩69,141, implying that the bankers' indicative price band is rather at a 15.7-44.6% premium.


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>Tianqi managed to pull off the largest HK IPO so far this year, a good listing could see a pickup in other large deals.</li>
<li>For placements, SK IE couldn't hold on to its deal price, while Ming Yang kicked off what might be a busy GDR season.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
Tianqi managed to pull off the largest HK IPO so far this year, a good listing could see a pickup in other large deals.
For placements, SK IE couldn't hold on to its deal price, while Ming Yang kicked off what might be a busy GDR season.


ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/socar-inc" target="_blank" data-smartkarma-citation="entities:29693:1" rel="noopener">SOCAR (403550 KS)</a> is looking to raise up to US$159m in its upcoming Korea IPO. </li>
<li>While SoCar seeks to be an all-in-one mobility solution provider, the bulk of its revenues still come from its car sharing segment. </li>
<li>The car sharing market remains highly competitive with existing players that are already profitable. In this note, we will undertake a peer comparison of SoCar vs its listed peers</li>
</ul>



SOCAR (403550 KS) is looking to raise up to US$159m in its upcoming Korea IPO. 
While SoCar seeks to be an all-in-one mobility solution provider, the bulk of its revenues still come from its car sharing segment. 
The car sharing market remains highly competitive with existing players that are already profitable. In this note, we will undertake a peer comparison of SoCar vs its listed peers


SoCar Pre-IPO - Peer Comparison - Highly Competitive Market with Thin Margins

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>There was a marked pickup in IPO activity with a number of smaller deals, along with two large deals being launched.</li>
<li>There were no major placements last week. In addition, Prosus single handedly took out two prospective large placements.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
There was a marked pickup in IPO activity with a number of smaller deals, along with two large deals being launched.
There were no major placements last week. In addition, Prosus single handedly took out two prospective large placements.


ECM Weekly (3rd Jul 2022) - Tianqi, Thai Life, Prosus/Naspers, Tencent, SEA, Soosan, SoCar, Carsales

South Korea

SOCAR Inc. operates as a car dealer company. The Company provides car sharing, autonomous shuttle, and other related services. SOCAR markets its products worldwide.

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SOCAR (403550 KS)

SOCAR IPO Likely to Be Delayed

Although Socar has not formally announced that it will delay the IPO, we believe that there is a high probability that the IPO will be postponed.

Douglas Kim

WCP IPO Terms & Valuation Controversies

This post details the WCP IPO, valued at ₩2.7-3.4T by the bankers, and discusses why this valuation causes over-pricing controversies.

Sanghyun Park

ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

SoCar Pre-IPO - Peer Comparison - Highly Competitive Market with Thin Margins

SoCar is looking to raise up to US$159m in its upcoming Korea IPO. While SoCar seeks to be an all-in-one mobility solution provider, the bulk of...

Ethan Aw

ECM Weekly (3rd Jul 2022) - Tianqi, Thai Life, Prosus/Naspers, Tencent, SEA, Soosan, SoCar, Carsales

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

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