Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<blockquote>See the stone set in your eyes. See the thorn twist in your side. I wait for you. (U2's With or Without You)</blockquote>This report is about how 5G service will change the music industry world-wide, especially music streaming services such as Spotify and AppleMusic. After reading Spotify's F-1, I felt that not enough details were revealed about the impact of 5G services on the global music industry. The global recorded music industry went through a terrible period when its market size declined from US$23.8…

See the stone set in your eyes. See the thorn twist in your side. I wait for you. (U2's With or Without You)This report is about how 5G service will change the music industry world-wide, especially music streaming services such as Spotify and AppleMusic. After reading Spotify's F-1, I felt that not enough details were revealed about the impact of 5G services on the global music industry. The global recorded music industry went through a terrible period when its market size declined from US$23.8…

<ul class=""><li><a href="https://www.smartkarma.com/entities/26772" target="_blank" data-smartkarma-citation="entities:26772:1">Spotify Technology SA (SPOT US)</a> is getting ready for a Direct Public Listing (DPL) on the NYSE market sometime in late March/April. The company plans to raise US$1 billion.</li><li>The purpose of our report is twofold: First is to analyze the intrinsic value of Spotify. Second is to find out companies in the Korean stock market that could benefit from the listing of Spotify as a public company. </li><li>Unlike regular IPOs where the underwriters play a big role in pricing the deal, the Spotify's DPL will not involve underwriters but will be priced directly by the market. Most recently, Spotify has been valued at US$19.7 billion in the private markets.</li><li>Spotify was founded in 2006 and it has headquarters in Stockholm, Sweden. Spotify is the global leader in streaming music services. It had 71 million paying subscribers and more than 159 million monthly active users (MAU) at end of 2017. </li><li>The four major online/mobile music streaming related stocks in Korea <a href="https://www.smartkarma.com/entities/19211" target="_blank" data-smartkarma-citation="entities:19211:1">Loen Entertainment Inc (016170 KS)</a>, NHN Bugs, Gini Music, and <a href="https://www.smartkarma.com/entities/2952" target="_blank" data-smartkarma-citation="entities:2952:1">Soribada Inc (053110 KS)</a> are up 7.6% YTD, outperforming KOSPI which is down 2.6% YTD. One of the major reasons for this outperformance could be because of the increased expectation of the public listing of Spotify which could result in higher valuations relative comparisons for other music streaming companies globally, including the ones in Korea. </li></ul>

Spotify Technology SA (SPOT US) is getting ready for a Direct Public Listing (DPL) on the NYSE market sometime in late March/April. The company plans to raise US$1 billion.The purpose of our report is twofold: First is to analyze the intrinsic value of Spotify. Second is to find out companies in the Korean stock market that could benefit from the listing of Spotify as a public company. Unlike regular IPOs where the underwriters play a big role in pricing the deal, the Spotify's DPL will not involve underwriters but will be priced directly by the market. Most recently, Spotify has been valued at US$19.7 billion in the private markets.Spotify was founded in 2006 and it has headquarters in Stockholm, Sweden. Spotify is the global leader in streaming music services. It had 71 million paying subscribers and more than 159 million monthly active users (MAU) at end of 2017. The four major online/mobile music streaming related stocks in Korea Loen Entertainment Inc (016170 KS), NHN Bugs, Gini Music, and Soribada Inc (053110 KS) are up 7.6% YTD, outperforming KOSPI which is down 2.6% YTD. One of the major reasons for this outperformance could be because of the increased expectation of the public listing of Spotify which could result in higher valuations relative comparisons for other music streaming companies globally, including the ones in Korea. 

Spotify Direct Public Listing Preview (Part 1)

South Korea

Soribada Inc. is online music service provider.  The Company provides the users with music downloading service to computers and portable devices.  Soribada also develops, processes, and sells custom blended soil mixes for the agricultural industry.

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Soribada Inc (053110 KS)

5G + Music = $$$

See the stone set in your eyes. See the thorn twist in your side. I wait for you. (U2's With or Without You)This report is about how 5G service...

Douglas Kim

Spotify Direct Public Listing Preview (Part 1)

Spotify Technology SA (SPOT US) is getting ready for a Direct Public Listing (DPL) on the NYSE market sometime in late March/April. The company...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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