In today’s briefing:
- KOSDAQ150 Ad Hoc Index Rebalance: VATECH (043150 KS) Replaces Lutronic (085370 KS)
- Doosan Robotics: Strong Initial Book Building Results
- Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
- Seoul Guarantee Insurance Corp IPO Preview
KOSDAQ150 Ad Hoc Index Rebalance: VATECH (043150 KS) Replaces Lutronic (085370 KS)
- Value Added Technologies (043150 KS) will replace Lutronic Corp (085370 KS) in the KOSDAQ 150 Index (KOSDQ150 INDEX) at the close on 14 September.
- Passive trackers will need to buy over 1.5x ADV on Value Added Technologies (043150 KS). The impact is higher on Lutronic Corp (085370 KS) but the arbs will provide liquidity.
- Value Added Technologies (043150 KS) appears to trade cheaper than its peers on all valuation parameters and there could be a re-rating following the index inclusion.
Doosan Robotics: Strong Initial Book Building Results
- Chosun Business Daily mentioned today that initial results of Doosan Robotics book building have been very strong. The current IPO price range is from 21,000 won to 26,000 won.
- There is a high probability that the IPO price will be set at 26,000 won or more and close to 30,000 won.
- Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.
Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
- Doosan Robotics (454910 KS) is looking to raise up to US$318m in its Korean IPO.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
- In our previous notes, we assessed the company’s past performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share our updated thoughts on valuation.
Seoul Guarantee Insurance Corp IPO Preview
- Seoul Guarantee Insurance Corp is getting ready to complete its IPO in Korea in the next several weeks. The IPO price range is from 39,500 won to 51,800 won.
- Market cap is from 2.8 trillion won to 3.6 trillion won. At the high end of the IPO price range, this could be the biggest IPO in Korea in 2023.
- Many investors will be skeptical on the bankers including two overseas comps (Travelers and Coface) which have much higher valuations.
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