In today’s briefing:
- Dongkuk Steel Mill: Demerger Details & Passive Outflow Trading
- Bionote: IPO Price Reduced Significantly & Bookbuilding Results
Dongkuk Steel Mill: Demerger Details & Passive Outflow Trading
- The size of treasury shares in the Dongkuk Steel demerger event is not too large to expect a value accretion to the combined market cap after the split.
- Based on the current market cap, all three companies will likely leave the KOSPI 200. To this end, K200 trackers must dispose of Dongkuk Steel right before the trade suspension.
- The size of rebalancing trading before trade suspension should be about ₩40T. We should consider setting our entry into flow trading as early as two weeks towards the trade suspension.
Bionote: IPO Price Reduced Significantly & Bookbuilding Results
- Bionote slashed its IPO price to 9,000 won, which is 50% lower than the low end of the previous IPO valuation range.
- Our base case valuation has been revised down to 12,741 won per share in target price, which is 41% higher than the IPO price of 9,000 won.
- The company is expected to have more than 615 billion in net cash post the IPO, which is expected to represent nearly 65% of its market cap!
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