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

September Lockup Releases on KOSPI: Looking at Each Stock's Flow Situation

NCsoft - Announces a Buyback Worth 190 Billion Won To Stop Share Price Bleeding

NCsoft Buyback & Short Squeezing Possibilities

Krafton - Consensus Likely to Reduce Earnings Estimates in 2022

A Comprehensive Review of 27 IPOs in Korea in 2020 and 2021

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

Event-Driven

<p><a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener">Krafton Inc (259960 KS)</a> shares are currently trading at 497,000 won, which is nearly flat versus its IPO price of 498,000 won. It traded as low as 400,5000 won on 11 August but has rebounded since then. In this insight, we discuss the end of the one month lockup period for Krafton, which could be significant due to the potential selling by the institutional investors (especially among foreign investors). We also discuss how the valuation of NCsoft has fallen so much that now, there is a high probability of the valuation gap between these companies narrowing in the coming months. </p><div class="content-highlight"><p>Among the various lockup periods, the one month period is perhaps the most important for Krafton. There are 0.97 million shares of Krafton that are under the lockup period (2% of outstanding shares). However, among the overseas institutions, 100% of the shares that are locked up is for the one month period (0.68 million shares or 1.4% of the outstanding shares). As a result, the one month period after the IPO is perhaps the most important in terms of potential selling by the overseas investors. </p></div>

Krafton Inc (259960 KS) shares are currently trading at 497,000 won, which is nearly flat versus its IPO price of 498,000 won. It traded as low as 400,5000 won on 11 August but has rebounded since then. In this insight, we discuss the end of the one month lockup period for Krafton, which could be significant due to the potential selling by the institutional investors (especially among foreign investors). We also discuss how the valuation of NCsoft has fallen so much that now, there is a high probability of the valuation gap between these companies narrowing in the coming months. Among the various lockup periods, the one month period is perhaps the most important for Krafton. There are 0.97 million shares of Krafton that are under the lockup period (2% of outstanding shares). However, among the overseas institutions, 100% of the shares that are locked up is for the one month period (0.68 million shares or 1.4% of the outstanding shares). As a result, the one month period after the IPO is perhaps the most important in terms of potential selling by the overseas investors. 

End of the 1 Month Lockup Period for Krafton & An Excessive Pricing Gap Vs. NCsoft