Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

End of Mandatory Lock-Up Periods for 58 Companies in Korea in December 2022

Back-Testing End of Mandatory Lock-Up Periods Data from Korea Securities Depository in 2H 2022

End of Mandatory Lock-Up Periods for 57 Companies in Korea in January 2023

MSCI Korea - Potential Inclusions & Exclusions Highlighted by the Locals

Kakao Games: Announces A Rights Offering Worth 197 Billion Won

Lionheart Studio Getting Ready for an IPO as Early as 2H 2022: A Near-Term Negative for Kakao Games

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

Event-Driven

<ul>
<li>Although Lionheart Studio announced that it will cancel its IPO this year, it is highly likely that the company will complete its IPO by 1H 2023.</li>
<li>If Lionheart Studio does not proceed with an IPO, Kakao Games has to pay to Lionheart CEO Kim Jae-Young and other major shareholders as much as 1.2 trillion won.</li>
<li>We would argue that Kakao Games' earnings estimates are overly aggressive and there is a strong likelihood of 30%+ earnings downgrade for Kakao Games by the consensus in 2023.</li>
</ul>


Although Lionheart Studio announced that it will cancel its IPO this year, it is highly likely that the company will complete its IPO by 1H 2023.
If Lionheart Studio does not proceed with an IPO, Kakao Games has to pay to Lionheart CEO Kim Jae-Young and other major shareholders as much as 1.2 trillion won.
We would argue that Kakao Games' earnings estimates are overly aggressive and there is a strong likelihood of 30%+ earnings downgrade for Kakao Games by the consensus in 2023.


Kakao Games: Further Downside Risk as IPO of Lionheart Studio Likely in 1H 2023