In today’s briefing:
- Sungeel HiTech IPO – The Highest Ever Bookbuilding Demand Ratio for a Korean IPO
- Bridgetown Holdings Considering a Potential Merger with Circles.Life
Sungeel HiTech IPO – The Highest Ever Bookbuilding Demand Ratio for a Korean IPO
- Sungeel Hitech announced its IPO book building results. The IPO price has been determined at 50,000 won, higher than the high end of IPO price of 47,500 won.
- The demand ratio for Sungeel Hitech IPO was 2,269.7 to 1 which broke all time records in terms of highest ever demand ratio for a Korean IPO.
- Our base case valuation is implied price per won of 70,992 won per share, which represents 42% higher than the IPO price of 50,000 won.
Bridgetown Holdings Considering a Potential Merger with Circles.Life
- Bridgetown Holdings, a SPAC backed by Peter Thiel and Richard Li, is considering a potential merger with Singapore’s virtual telco Circles.Life (merger valuation could range US$1.5 billion to US$2.5 billion).
- All in all, the valuation range of the proposed M&A merger of Bridgetown Holdings and Circles.Life needs to be reduced substantially, in order to generate more interest in this deal.
- Otherwise, there is likely to be weak demand for this merger deal. In addition, the market environment for SPAC related M&A deals have deteriorated significantly in the past 6-12 months.
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