In today’s briefing:
- WCP IPO Valuation Analysis
- Soosan Industries Pre-IPO – Pro-Nuclear Growth Angle and Better Track Record Vs Peers
- ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin
WCP IPO Valuation Analysis
- Our base case valuation of WCP is EV of 2.4 trillion won, implied market cap of 3.0 trillion won and target price of 87,805 won per share.
- Given the lack of upside relative to the IPO price range (80,000 won to 100,000 won), we would PASS on this IPO deal.
- We forecast the company to generate revenue of 229.1 billion won (up 23.5% YoY) in 2022. We estimate operating margin of 14.8% in 2022, lower than 21.8% in 2021.
Soosan Industries Pre-IPO – Pro-Nuclear Growth Angle and Better Track Record Vs Peers
- Soosan Industries (126720 KS) is looking to raise up to US$189m in its Korean IPO.
- Soosan Industries (SSI) is a private maintenance firm that provides general maintenance services for power plants in South Korea.
- In our view, despite being a much smaller player, it has recorded better margins and profitability growth, warranting it to trade at least inline with its direct peer, KKPS.
ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- Tianqi managed to pull off the largest HK IPO so far this year, a good listing could see a pickup in other large deals.
- For placements, SK IE couldn’t hold on to its deal price, while Ming Yang kicked off what might be a busy GDR season.
Before it’s here, it’s on Smartkarma
