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

Trading Strategy of SK Bioscience IPO Post Pricing

SK Bioscience IPO Preview - Biggest IPO in Korea in 1Q 2021

SK Bioscience IPO: Fast Index Entry Possibilities

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sk-bioscience-co-ltd" target="_blank" data-smartkarma-citation="entities:31484:1" rel="noopener">SK Bioscience (302440 KS)</a> IPO is scheduled to be completed this week on March 18th. This IPO was on a near cruise control, scoring big points among many institutional and retail investors in the pre-IPO period. Nonetheless, in the past several days, a new development has taken place with numerous countries, including Germany, France, Italy, and Spain announcing that they will temporarily suspend <a href="https://edition.cnn.com/2021/03/15/europe/italy-lockdown-europe-coronavirus-monday-scli-intl/index.html" target="_blank" rel="noopener">AstraZeneca COVID-19 vaccinations</a> until further notice.</p><div class="content-highlight"><p><em>If we had to take an educated guess, we think that many investors that may have wanted to sell their shares of SK Bioscience at about 150,000 won to 200,000 won per share may now lower their high end expectations so that they may now be trying to sell the stock at about 100,000 won to 150,000 won per share. The high end range of 100,000 won to 150,000 won still represents a healthy upside from the IPO price but still less than the even higher levels that many investors were expecting from this IPO. Our base case price target of SK Bioscience remains 149,000 won per share (129% higher than the IPO price) or 11.5 trillion won in implied market cap.  </em></p></div>

SK Bioscience (302440 KS) IPO is scheduled to be completed this week on March 18th. This IPO was on a near cruise control, scoring big points among many institutional and retail investors in the pre-IPO period. Nonetheless, in the past several days, a new development has taken place with numerous countries, including Germany, France, Italy, and Spain announcing that they will temporarily suspend AstraZeneca COVID-19 vaccinations until further notice.If we had to take an educated guess, we think that many investors that may have wanted to sell their shares of SK Bioscience at about 150,000 won to 200,000 won per share may now lower their high end expectations so that they may now be trying to sell the stock at about 100,000 won to 150,000 won per share. The high end range of 100,000 won to 150,000 won still represents a healthy upside from the IPO price but still less than the even higher levels that many investors were expecting from this IPO. Our base case price target of SK Bioscience remains 149,000 won per share (129% higher than the IPO price) or 11.5 trillion won in implied market cap.  

Germany, France, Italy, & Spain Suspend AstraZeneca COVID-19 Vaccinations: Impact on SK Bioscience