Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/coocon-corp" target="_blank" data-smartkarma-citation="entities:32234:1" rel="noopener">Coocon Corp (294570 KS), </a>the market leader in providing API based information services in Korea, announced excellent book building results. The IPO price of Coocon has been determined at <strong>45,000 won</strong>, which is above the IPO price range of 31,000 won to 40,000 won. There were 1,578 institutions that participated in this IPO survey and the demand was extremely strong at <strong>1,595 to 1.</strong></p>
<p><strong>Our base case valuation of Coocon is 66,104 won, which is 47% higher than the IPO price of 45,000 won. Despite the slowing momentum in the global IPO market, we think that Coocon's IPO will stand out and be able to reach our target price in the first few days of trading. </strong></p>
<p>Coocon is engaged in the collection and connection of multitude of data involving API, which is essentially a contract between two or more software that results in a certain functionality if the user software provides an input in a pre-defined format. It collects and connects data from 500 domestic institutions such as finance, public, medical, logistics, distribution, and telecommunications, as well as more than 2,000 institutions in 40 countries abroad. </p>
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<td colspan="4" style="width: 546.4px;"><div><strong>Institutional Investors Demand Breakdown of Coocon IPO Bookbuilding Results</strong></div></td>
<td></td>
</tr>
<tr>
<td style="text-align: center; width: 135.52px;"><strong>Domestic Investors</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td style="text-align: center; width: 108.64px;"><strong>Asset mgmt companies</strong></td>
<td style="text-align: center; width: 135.52px;"><strong>Brokerages</strong></td>
<td style="text-align: center; width: 125.92px;"><strong>Pension funds/insurance/banks</strong></td>
<td style="text-align: center; width: 90.08px;"><strong>Others</strong></td>
<td></td>
</tr>
<tr>
<td style="width: 114.4px;">No. of companies</td>
<td style="text-align: center; width: 108.64px;">538</td>
<td style="text-align: center; width: 135.52px;">37</td>
<td style="text-align: center; width: 125.92px;">209</td>
<td style="text-align: center; width: 90.08px;">478</td>
</tr>
<tr>
<td style="width: 114.4px;">Demand</td>
<td style="text-align: center; width: 108.64px;">541 to 1</td>
<td style="text-align: center; width: 135.52px;">36 to 1</td>
<td style="text-align: center; width: 125.92px;">206 to 1</td>
<td style="text-align: center; width: 90.08px;">484 to 1</td>
</tr>
<tr>
<td style="width: 114.4px;"> </td>
<td style="text-align: center; width: 108.64px;"> </td>
<td style="text-align: center; width: 135.52px;"> </td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
</tr>
<tr>
<td style="text-align: center; width: 135.52px;"><strong>Overseas Investors</strong></td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
<td></td>
<td></td>
</tr>
<tr>
<td style="text-align: center; width: 108.64px;"><strong>(A)*</strong></td>
<td style="text-align: center; width: 135.52px;"><strong>(B)**</strong></td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
<td></td>
</tr>
<tr>
<td style="width: 114.4px;">No. of companies</td>
<td style="text-align: center; width: 108.64px;">104</td>
<td style="text-align: center; width: 135.52px;">212</td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
</tr>
<tr>
<td style="width: 114.4px;">Demand</td>
<td style="text-align: center; width: 108.64px;">105 to 1</td>
<td style="text-align: center; width: 135.52px;">222 to 1</td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
</tr>
<tr>
<td style="width: 114.4px;"> </td>
<td style="text-align: center; width: 108.64px;"> </td>
<td style="text-align: center; width: 135.52px;"> </td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
</tr>
<tr>
<td style="width: 114.4px;"><strong>Total (No. of companies)</strong></td>
<td style="text-align: center; width: 108.64px;"><strong>1,578</strong></td>
<td style="text-align: center; width: 135.52px;"> </td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
</tr>
<tr>
<td style="width: 114.4px;"><strong>Total Demand</strong></td>
<td style="text-align: center; width: 108.64px;"><strong>1,595 to 1</strong></td>
<td style="text-align: center; width: 135.52px;"> </td>
<td style="text-align: center; width: 125.92px;"> </td>
<td style="text-align: center; width: 90.08px;"> </td>
</tr>
<tr><td colspan="5" style="width: 657.12px;">Note: (A)* refers to overseas investment mgmt companies that have records of trading with the brokers involved in this deal.</td></tr>
<tr><td colspan="5" style="width: 657.12px;">(B)** refers to overseas investment mgmt companies that do not have records of trading with the brokers involved in this deal.</td></tr>
<tr>
<td colspan="2">Source: Company data</td>
<td style="width: 135.52px;"> </td>
<td style="width: 125.92px;"> </td>
<td style="width: 90.08px;"> </td>
</tr>
</tbody>
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Coocon Corp (294570 KS), the market leader in providing API based information services in Korea, announced excellent book building results. The IPO price of Coocon has been determined at 45,000 won, which is above the IPO price range of 31,000 won to 40,000 won. There were 1,578 institutions that participated in this IPO survey and the demand was extremely strong at 1,595 to 1.
Our base case valuation of Coocon is 66,104 won, which is 47% higher than the IPO price of 45,000 won. Despite the slowing momentum in the global IPO market, we think that Coocon's IPO will stand out and be able to reach our target price in the first few days of trading. 
Coocon is engaged in the collection and connection of multitude of data involving API, which is essentially a contract between two or more software that results in a certain functionality if the user software provides an input in a pre-defined format. It collects and connects data from 500 domestic institutions such as finance, public, medical, logistics, distribution, and telecommunications, as well as more than 2,000 institutions in 40 countries abroad. 








Institutional Investors Demand Breakdown of Coocon IPO Bookbuilding Results



Domestic Investors






Asset mgmt companies
Brokerages
Pension funds/insurance/banks
Others



No. of companies
538
37
209
478


Demand
541 to 1
36 to 1
206 to 1
484 to 1


 
 
 
 
 


Overseas Investors
 
 




(A)*
(B)**
 
 



No. of companies
104
212
 
 


Demand
105 to 1
222 to 1
 
 


 
 
 
 
 


Total (No. of companies)
1,578
 
 
 


Total Demand
1,595 to 1
 
 
 

Note: (A)* refers to overseas investment mgmt companies that have records of trading with the brokers involved in this deal.
(B)** refers to overseas investment mgmt companies that do not have records of trading with the brokers involved in this deal.

Source: Company data
 
 
 






COOCON Bookbuilding Results and Trading Strategy Post IPO