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

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Equity Capital Markets

<p>K Car is another interesting upcoming IPO in Korea. K Car, the largest used car e-commerce player in Korea, is getting ready to complete its IPO in early October. The IPO price range is from 34,300 won to 43,200 won per share. The IPO base deal size is from US$498 million to US$627 million. Of the 16.8m shares offered in the IPO, 15.6m shares are old shares and 1.2m are new shares).</p><p>According to the bankers' valuation, the expected market cap of the company is from 1.8 trillion won to 2.2 trillion won. The lead underwriters include NH Investment &amp; Securities and Goldman Sachs. The book building for the institutional investors starts on 27 September 2021. </p><p>K Car is mainly in the used car and rental car businesses. Hahn &amp; Co, a private equity firm in Korea, acquired the controlling stake in K Car in April 2018. Hahn &amp; Co Auto Service Holdings currently has a 100% stake in K Car. Post the IPO, it will have a 61% stake in K Car. </p><table class="table table-striped">
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<td><div><strong>Deal Specifics of K Car IPO</strong></div></td>
<td style="width: 258pt;"> </td>
</tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 258pt;">NH Investment &amp; Securities, Goldman Sachs</td>
</tr>
<tr>
<td>Expected IPO price per share: </td>
<td style="width: 258pt;">34,300 won (low)/43,200 won (high)</td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 258pt;">16.83m shares (15.6mn old shares; 1.2mn new shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 258pt;">US$498mn (low);  US$627mn (high)</td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 258pt;">50.89m shares</td>
</tr>
<tr>
<td>Expected market cap after IPO:</td>
<td style="width: 258pt;">1,745 billion won (low)/2,198 billion won (high)</td>
</tr>
<tr>
<td>Book open: </td>
<td style="text-align: left; width: 258pt;">27-Sep-21</td>
</tr>
<tr>
<td>Book closed:</td>
<td style="text-align: left; width: 258pt;">28-Sep-21</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 258pt;">TBC</td>
</tr>
<tr>
<td>Source: Company data</td>
<td style="width: 258pt;"></td>
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K Car is another interesting upcoming IPO in Korea. K Car, the largest used car e-commerce player in Korea, is getting ready to complete its IPO in early October. The IPO price range is from 34,300 won to 43,200 won per share. The IPO base deal size is from US$498 million to US$627 million. Of the 16.8m shares offered in the IPO, 15.6m shares are old shares and 1.2m are new shares).According to the bankers' valuation, the expected market cap of the company is from 1.8 trillion won to 2.2 trillion won. The lead underwriters include NH Investment &amp; Securities and Goldman Sachs. The book building for the institutional investors starts on 27 September 2021. K Car is mainly in the used car and rental car businesses. Hahn &amp; Co, a private equity firm in Korea, acquired the controlling stake in K Car in April 2018. Hahn &amp; Co Auto Service Holdings currently has a 100% stake in K Car. Post the IPO, it will have a 61% stake in K Car. 






Deal Specifics of K Car IPO
 


Lead underwriters of the IPO: 
NH Investment &amp; Securities, Goldman Sachs


Expected IPO price per share: 
34,300 won (low)/43,200 won (high)


Number of Shares for IPO:
16.83m shares (15.6mn old shares; 1.2mn new shares)


IPO base deal size: 
US$498mn (low);  US$627mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
50.89m shares


Expected market cap after IPO:
1,745 billion won (low)/2,198 billion won (high)


Book open: 
27-Sep-21


Book closed:
28-Sep-21


Listing date: 
TBC


Source: Company data





K Car

K Car IPO Preview