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

Netmarble Sells 6 Million Shares of Kakao Bank for 430 Billion Won

Netmarble Selling Kakao Bank: Additional Sellings & What Should We Do?

Three Local Stocks Exposed to Netmarble's Stake Sale Risk: NCsoft, HYBE, & Kakao Games

Kakao Bank: MSCI Inclusion Done, KOSPI200 Will Be Done; Flow Dynamics

Kakao Bank: Passive Supply/Demand Situation & Profit Realization Timing

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

Equity Bottom-Up

<div class="content-highlight">
<p>In this insight, we discuss the risk vs. reward of Kakao Bank shares after the sharp appreciation of its share price post IPO. Kakao Bank's share price has appreciated to 78,500 won, up 101% from the IPO price of 39,000 won. Kakao Bank's market cap has ballooned to 37.3 trillion won.</p>
<p>Kakao Bank has now become the 10th largest stock in KOSPI. Kakao Bank's market cap is now similar to the combined market caps of the two largest banking groups in Korea including <a href="https://www.smartkarma.com/entities/kb-financial-group-inc" target="_blank" data-smartkarma-citation="entities:718:1" rel="noopener">KB Financial (105560 KS)</a> and <a href="https://www.smartkarma.com/entities/shinhan-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:6978:1" rel="noopener">Shinhan Financial (055550 KS)</a> - 42 trillion won. After this sharp appreciation, we believe that the risk-reward ratio of Kakao Bank is no longer attractive and change our view on the company to <strong>NEGATIVE.  </strong></p>
</div>


In this insight, we discuss the risk vs. reward of Kakao Bank shares after the sharp appreciation of its share price post IPO. Kakao Bank's share price has appreciated to 78,500 won, up 101% from the IPO price of 39,000 won. Kakao Bank's market cap has ballooned to 37.3 trillion won.
Kakao Bank has now become the 10th largest stock in KOSPI. Kakao Bank's market cap is now similar to the combined market caps of the two largest banking groups in Korea including KB Financial (105560 KS) and Shinhan Financial (055550 KS) - 42 trillion won. After this sharp appreciation, we believe that the risk-reward ratio of Kakao Bank is no longer attractive and change our view on the company to NEGATIVE.  


KakaoBank

Kakao Bank - Risk Vs. Reward Post IPO