In today’s briefing:
- SK Shieldus IPO Valuation Analysis
- SK Shieldus IPO: Valuation Insights
SK Shieldus IPO Valuation Analysis
- Our valuation of SK Shieldus suggests target price of 44,892 won, which is 29% higher than the mid-point of the IPO price range of 34,900 won.
- We would subscribe to this IPO as the company has strong business moat, especially for the physical security business and its convergence security/cybersecurity businesses are enjoying excellent customer demand.
- Although we have a positive view of SK Shieldus, there will be some investors that stay away from this IPO due to its high debt levels and rising interest rates.
SK Shieldus IPO: Valuation Insights
- SK Shieldus (ABFHIZ KS) is a leading South Korean security provider. It is pre-marketing a KRX IPO to raise up to US$0.9 billion.
- In SK Shieldus IPO Initiation: Track and Shield, we noted that SK shieldus has attractive fundamentals with healthy growth and margins. The leverage is manageable due to good cash generation.
- In this note, we look at the syndicate’s valuation methodology and present our valuation methodology. Our valuation analysis suggests that the IPO price range is attractive.
Before it’s here, it’s on Smartkarma
