Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price range.</li>
<li>A total of 2,216 institutions participated in the IPO demand forecast and the competition rate was 734 to 1.</li>
<li>According to our valuation analysis, it suggests a base case implied price of 40,230 won, which is 18% higher than the IPO price. </li>
</ul>


The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price range.
A total of 2,216 institutions participated in the IPO demand forecast and the competition rate was 734 to 1.
According to our valuation analysis, it suggests a base case implied price of 40,230 won, which is 18% higher than the IPO price. 


The Born Korea IPO Book Building Results Analysis

<ul>
<li>In this insight, we compare the IPO valuation of The Born Korea (475560 KS) versus the recent M&amp;A valuation of Compose Coffee by Jollibee Foods (JFC PM).</li>
<li>Using the recent M&amp;A multiples of Compose Coffee by Jollibee Foods suggests an attractive upside to The Born Korea (relative to the IPO price range).</li>
<li>No other listed company in Korea has a restaurant business model that is consistently profitable, with strong balance sheet, and solid sales growth as The Born Korea.  </li>
</ul>


In this insight, we compare the IPO valuation of The Born Korea (475560 KS) versus the recent M&amp;A valuation of Compose Coffee by Jollibee Foods (JFC PM).
Using the recent M&amp;A multiples of Compose Coffee by Jollibee Foods suggests an attractive upside to The Born Korea (relative to the IPO price range).
No other listed company in Korea has a restaurant business model that is consistently profitable, with strong balance sheet, and solid sales growth as The Born Korea.  


The Born Korea IPO Valuation Vs Recent M&A Valuation of Compose Coffee by Jollibee Foods

<ul>
<li> According to our valuation analysis, it suggests an implied price of 34,365 won, which is 27% higher than the high end of the IPO price range. </li>
<li>We estimate The Born Korea to generate sales of 467.7 billion won (up 13.1% YoY) and operating profit of 31.4 billion won (up 22.8% YoY) in 2024.</li>
<li>We believe a premium to comps' valuation is appropriate for The Born Korea mainly due to its higher sales growth, higher ROE, stronger balance sheet, and higher profit margins. </li>
</ul>


 According to our valuation analysis, it suggests an implied price of 34,365 won, which is 27% higher than the high end of the IPO price range. 
We estimate The Born Korea to generate sales of 467.7 billion won (up 13.1% YoY) and operating profit of 31.4 billion won (up 22.8% YoY) in 2024.
We believe a premium to comps' valuation is appropriate for The Born Korea mainly due to its higher sales growth, higher ROE, stronger balance sheet, and higher profit margins. 


<ul>
<li>The Born Korea is getting ready to complete its IPO in Korea in November. The total IPO offering is expected to range from 69 billion won to 84 billion won. </li>
<li>Based on the bankers' valuation, the expected market cap of the company ranges from 357 billion won to 419 billion won. </li>
<li>The Born Korea was founded by Baek Jong-Won, the most famous celebrity chef in Korea. </li>
</ul>


The Born Korea is getting ready to complete its IPO in Korea in November. The total IPO offering is expected to range from 69 billion won to 84 billion won. 
Based on the bankers' valuation, the expected market cap of the company ranges from 357 billion won to 419 billion won. 
The Born Korea was founded by Baek Jong-Won, the most famous celebrity chef in Korea. 


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The review period for the March rebalance of the KOSPI Size Indices commences on 1 December and will end on 28 February.</li>
<li>We see 5 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 8 stocks moving from SmallCap to MidCap and 1 new addition to MidCap.</li>
<li>The migrations from MidCap to LargeCap have outperformed the other migration categories. Four potential LargeCap to MidCap migrations will be deleted from a global index later this month.</li>
</ul>


The review period for the March rebalance of the KOSPI Size Indices commences on 1 December and will end on 28 February.
We see 5 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 8 stocks moving from SmallCap to MidCap and 1 new addition to MidCap.
The migrations from MidCap to LargeCap have outperformed the other migration categories. Four potential LargeCap to MidCap migrations will be deleted from a global index later this month.


KOSPI Size Indices: Global Index Selling Leads to Potential Downward Migration

South Korea

The goal of The Born Korea, which operates a brand with reasonable prices and popular menus, is to create a meal where all customers can enjoy a hearty meal at an affordable price while also feeling happy.

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The Born Korea (475560 KS)

The Born Korea IPO Book Building Results Analysis

The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price...

Douglas Kim

The Born Korea IPO Valuation Vs Recent M&A Valuation of Compose Coffee by Jollibee Foods

Using the recent M&A multiples of Compose Coffee by Jollibee Foods suggests an attractive upside to The Born Korea (relative to the IPO price range).

Douglas Kim

The Born Korea IPO Valuation Analysis

According to our valuation analysis, it suggests an implied price of 34,365 won, which is 27% higher than the high end of the IPO price range.

Douglas Kim

The Born Korea IPO Preview

Founded by Baek Jong-Won, the most famous celebrity chef in Korea, The Born Korea is getting ready to complete its IPO in Korea. The total IPO...

Douglas Kim

KOSPI Size Indices: Global Index Selling Leads to Potential Downward Migration

There could be 29 migrations for the KOSPI Size indices in March, plus 1 LargeCap and 1 MidCap inclusion. The MidCap to LargeCap migrations have...

Brian Freitas

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