Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Why Billions of People Will Bypass Internet to Use Metaverse & Surge in Metaverse ETFs AUM in Korea

Using Metaverse ETFs as Leading Indicators in the Korean Stock Market

Korea's Local Metaverse ETFs Rebalancing Preview: Implementation on December 13

How Is Metaverse Revolutionizing Businesses in Korea? Virtual Humans Rozy & Lucy Are Just a Start

Listing of 4 New Metaverse Related ETFs in Korea

Non-Fungible Tokens (NFTs): Across the Metaverse

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Event-Driven

<div class="content-highlight"><p>In the past few days, <a href="https://www.smartkarma.com/entities/hybe-co-ltd" target="_blank" data-smartkarma-citation="entities:28959:1" rel="noopener">HYBE (352820 KS)</a> announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token). Dunamu will invest 700 billion won in HYBE through a third-party allocation and paid-in capital increase. HYBE will also invest 500 billion won in Dunamu through a third-party allocation and paid-in capital increase.</p></div><ul>
<li>HYBE will issue 2.3 million new shares (5.9% of current outstanding shares of 39 million) at a purchase price of 304,008 won in this transaction. HYBE currently has a stock price of 383,500 won so the purchase price is about 21% lower than the current price. </li>
<li>As a result of this transaction, HYBE will have a 2.48% stake in Dunamu, which would imply a value of 20.2 trillion won ($17.2 billion) for Dunamu. The date of this share acquisition completion will be on 24 November.</li>
</ul><div class="content-highlight"><p><strong>Metaverse &amp; NFT - A Re-Rating Factor for HYBE? </strong>The metaverse and NFT have taken the world by storm in 2021. One could argue that the extremely strong demand for NFT and metaverse in 2021 have been one of the key reasons for the re-rating of HYBE this year. Certainly, HYBE faces the risk associated with its high dependence on the BTS. However, it has been able to partly diffuse this risk with the acquisition of Ithaca Holdings in April 2021. Now, with the extraordinary demand for NTF and metaverse related contents and services, HYBE is well positioned to capitalize these trends.</p></div>

In the past few days, HYBE (352820 KS) announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token). Dunamu will invest 700 billion won in HYBE through a third-party allocation and paid-in capital increase. HYBE will also invest 500 billion won in Dunamu through a third-party allocation and paid-in capital increase.
HYBE will issue 2.3 million new shares (5.9% of current outstanding shares of 39 million) at a purchase price of 304,008 won in this transaction. HYBE currently has a stock price of 383,500 won so the purchase price is about 21% lower than the current price. 
As a result of this transaction, HYBE will have a 2.48% stake in Dunamu, which would imply a value of 20.2 trillion won ($17.2 billion) for Dunamu. The date of this share acquisition completion will be on 24 November.
Metaverse &amp; NFT - A Re-Rating Factor for HYBE? The metaverse and NFT have taken the world by storm in 2021. One could argue that the extremely strong demand for NFT and metaverse in 2021 have been one of the key reasons for the re-rating of HYBE this year. Certainly, HYBE faces the risk associated with its high dependence on the BTS. However, it has been able to partly diffuse this risk with the acquisition of Ithaca Holdings in April 2021. Now, with the extraordinary demand for NTF and metaverse related contents and services, HYBE is well positioned to capitalize these trends.

A Equity-Based Partnership Between HYBE and Dunamu & The Upcoming Launch of BTS NFT