In today’s briefing:
- Fadu IPO Book Building Results Analysis
- Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified
Fadu IPO Book Building Results Analysis
- Fadu’s IPO price has been confirmed at 31,000 won (top end of the IPO valuation range). A total of 1,082 institutions participated, with a demand ratio of 362.9 to 1.
- Fadu is one of the biggest IPOs in Korea so far in 2023.
- Our base case valuation analysis suggests implied market cap of 2.2 trillion won or 43,676 won per share, which represents 41% higher than the IPO price.
Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified
- Lalatech Holdings filed for an IPO in March. I have tried to come at an IPO valuation for the company using a mix of methodologies: EV/Revenue, EV/GTV and EV/Gross Profit.
- Taking a weighted average of peer group multiples-based valuation methodologies, I arrived at a ~$7B IPO valuation for Lalatech Holdings, including ~$1.65B of cash and cash equivalents.
- From a peer group perspective, I arrived at a fair IPO valuation close to ~$7B, using a ~5x EV/CY22 Revenue, ~0.7x EV/CY22 GTV, and a 10x EV/CY22 Gross Profit multiple.
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