In today’s briefing:
- New Fast Entry Rule for KOSPI 200 & KOSDAQ 150: Post-IPO Price Swings Ramping Up
- Via Technologies GDR Offering – US$212m GDR Offering Will Be Easily Digested
- K Bank IPO: Valuation Insights
- Tokyo Metro IPO – The Positives – Quasi-Monopoly Status
- Upstream Bio IPO Preview: Severe Asthma/CRSwNP Program Advancing
New Fast Entry Rule for KOSPI 200 & KOSDAQ 150: Post-IPO Price Swings Ramping Up
- Besides ranking in the top 50 by market cap, it must also meet a minimum float-adjusted cap for K200 fast entry: at least 50% of the 50th-ranked stock’s market cap.
- Even if new stocks meet KRX’s float cap, their actual float share volume may still be low, risking inflation from local pension funds’ preemptive passive inflows post-listing.
- This could reduce predictability for KOSPI 200 fast entry, increasing price swings post-listing and forcing traders to develop new volatility strategies after IPOs.
Via Technologies GDR Offering – US$212m GDR Offering Will Be Easily Digested
- Via Technologies (2388 TT) is looking to raise US$212m in its global depository receipts (GDRs) offering. Proceeds will be used to purchase overseas raw materials, and to replenish working capital.
- Similar to previous GDR listings, the deal has had a long drawn out approval process. Thus, the deal is a very well flagged one.
- The deal is a relatively small one to digest at 5.8 days of the stock’s three month ADV.
K Bank IPO: Valuation Insights
- K Bank (279570 KS) is a Korean internet bank. It has launched an IPO to raise up to US$734 million.
- We previously discussed the IPO in K Bank IPO: The Bear Case and K Bank IPO: The Bull Case.
- We examine the syndicate’s valuation methodology. Our analysis suggests that K Bank is unattractively valued in the IPO price range. We would pass on the IPO.
Tokyo Metro IPO – The Positives – Quasi-Monopoly Status
- Tokyo Metro (9023 JP)‘s shareholders aim to raise up to US$2.3bn in its upcoming Japan IPO.
- Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
- In this note, we talk about the positive aspects of the deal.
Upstream Bio IPO Preview: Severe Asthma/CRSwNP Program Advancing
- Upstream Bio, a clinical-stage biotech company developing novel therapies for inflammatory and allergic diseases, filed for an IPO in the United States.
- The biotech firm was backed by premier investors, including OrbiMed, Access Industries, Maruho Co., Samsara BioCapital, Omega Funds, and Enavate Sciences, among others.
- I believe that company’s lead compound, verekitug (UPB-101), has a broader commercial opportunity than many investors appreciate.
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