In today’s briefing:
- SK Shieldus IPO: Industry Dynamics of Four Business Units
- SK Square: NAV Post IPOs of SK Shieldus/OneStore and a Major Investment in ARM Holdings?
- SK Shieldus IPO Initiation: Track and Shield
SK Shieldus IPO: Industry Dynamics of Four Business Units
- In this insight, we provide further details of the four main business units of SK Shieldus, which is a leading one-stop shop provider for security services in Korea.
- The company has been able to improve the customer churn rate of the Physical Security (CMS) unit from 14.7% in 2019 to 11.7% in 2021.
- The leading global cybersecurity stocks have been outperforming the market this year by a big margin which should have a positive impact on the SK Shieldus IPO.
SK Square: NAV Post IPOs of SK Shieldus/OneStore and a Major Investment in ARM Holdings?
- Our updated NAV valuation of SK Square suggests an implied price of 82,167 won per share, which represents a 46% upside from current levels.
- For SK Shieldus and OneStore, we took the mid-points of the IPO price ranges and applied SK Square’s post IPO ownership stakes, respectively.
- SK Square’s CEO Park Jung-Ho announced that the SK Group is interested in investing in Arm Holdings. SK Group is well positioned to participate in the investment of ARM Holdings.
SK Shieldus IPO Initiation: Track and Shield
- 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.
- SK shieldus is offering 27.1 million shares with a primary/secondary split of 53/47 at an indicative price range of KRW31,000- 38,800 per share.
- SK shieldus has attractive fundamentals with healthy growth and margins. The leverage is manageable due to good cash generation.
Before it’s here, it’s on Smartkarma
