In today’s briefing:
- SOCAR IPO Book Building Results
- SOCAR IPO: Order Table, Revised Terms, & Thinking Points
SOCAR IPO Book Building Results
- SOCAR announced its IPO book building results. The IPO price has been determined at 28,000 won (18% lower than the low end of the IPO range).
- Our base case target price for SOCAR is 27,176 won, which is 3% lower than the IPO price of 28,000 won.
- We remain Negative on this IPO due to lack of upside. There were 348 companies involved in the IPO survey with the final demand ratio of 56 to 1.
SOCAR IPO: Order Table, Revised Terms, & Thinking Points
- SOCAR’s institutional subscription rate was 56.97 to 1. It is highly unusual for an institutional competition rate to be this low among IPOs worth more than ₩1T.
- SOCAR eventually set the price at ₩28,000 and reduced the offering volume from 4.55M to 3.64M, resulting in deal size of ₩100B at an implied market cap of ₩970B.
- Since Lotte Rental’s buying flow may be triggered earlier than expected, we may need to consider a swing trade if the price enters an oversold territory after listing.
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