In today’s briefing:
- A Pair Trade Between NCSoft & Netmarble Corp
- Bionote IPO – Delayed Timeline & Updated Valuation Analysis
A Pair Trade Between NCSoft & Netmarble Corp
- In this insight, we discuss a pair trade between NCSOFT Corp (036570 KS) (go long) and Netmarble Corporation (251270 KS) (go short).
- NCSoft is currently trading at lower valuation multiples (in terms of EV/EBITDA and P/E) than Netmarble, which we believe is not justified.
- One of the key risk factors of Netmarble is that it could be excluded from the MSCI Korea Index in 2023/2024.
Bionote IPO – Delayed Timeline & Updated Valuation Analysis
- Bionote has delayed its IPO timeline. Now, the company expects to complete its IPO in late December. The book building for the institutional investors will now start on 8 December.
- Our updated base case valuation is target price of 16,966 won per share, which is 6% lower than the low end of the IPO price range.
- Given the downside risk relative to the IPO price range, we have a Negative View of the BioNote IPO.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
