Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Wonbang Tech Co Ltd / Equity Capital Markets

In this insight, we provide a valuation analysis of Wonbangtech IPO. Its bookbuilding for the institutional investors starts on 8 September. We have a positive view on this IPO.Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production.Our base case valuation of the company is 341 billion won in market cap or 76,930 won per share, which represents 42% higher than the high end of the IPO price range of 54,300 won per share. To derive our base case valuation, we used a P/E multiple of 13.5x (average multiple of the comps) and applied it against our estimated net profit of 25.3 billion won in 2020.

In this insight, we provide a valuation analysis of Wonbangtech IPO. Its bookbuilding for the institutional investors starts on 8 September. We have a positive view on this IPO.Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production.Our base case valuation of the company is 341 billion won in market cap or 76,930 won per share, which represents 42% higher than the high end of the IPO price range of 54,300 won per share. To derive our base case valuation, we used a P/E multiple of 13.5x (average multiple of the comps) and applied it against our estimated net profit of 25.3 billion won in 2020.

Wonbangtech is getting ready for an IPO on the KOSDAQ exchange in the next several weeks. The IPO price range is from 43,000 won to 54,300 won. The IPO base deal size is from $46 million to $58 million. According to the bankers' valuation, the expected market cap after the IPO is from 190 billion won to 241 billion won.Established in 1989, Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production. Currently, only two to three companies in Korea have the technology to construct large scale semiconductor/display clean room facilities. The major Korean customers including Samsung Electronics, Samsung Display, SK Hynix, and LG Display are placing orders through limited competitive bidding targeting only a few companies such as Wonbangtech that they have worked with for a long time. This provides a major barrier to entry for other smaller competitors without adequate technology.

Wonbangtech is getting ready for an IPO on the KOSDAQ exchange in the next several weeks. The IPO price range is from 43,000 won to 54,300 won. The IPO base deal size is from $46 million to $58 million. According to the bankers' valuation, the expected market cap after the IPO is from 190 billion won to 241 billion won.Established in 1989, Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production. Currently, only two to three companies in Korea have the technology to construct large scale semiconductor/display clean room facilities. The major Korean customers including Samsung Electronics, Samsung Display, SK Hynix, and LG Display are placing orders through limited competitive bidding targeting only a few companies such as Wonbangtech that they have worked with for a long time. This provides a major barrier to entry for other smaller competitors without adequate technology. 

South Korea

Won Bang Tech Co., Ltd. was founded in 1989. The company's line of business includes the manufacturing of measuring and controlling devices.

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Wonbang Tech Co Ltd (1080662D KS)

Wonbangtech IPO Valuation Analysis

In this insight, we provide a valuation analysis of Wonbangtech IPO. Its bookbuilding for the institutional investors starts on 8 September.

Douglas Kim

Wonbangtech IPO Preview

Wonbangtech is getting ready for an IPO on the KOSDAQ exchange in the next several weeks. The IPO price range is from 43,000 won to 54,300 won. The...

Douglas Kim

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