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

Kakao Pay - Slightly Lower Our Base Case Valuation

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Event-Driven

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<p>In this insight, we discuss the end of the one-month lock-up period for <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> and where the bottom level prices could be for this stock.</p>
<p>There are 1.09 million shares of Kakao Pay that are under the lockup period (0.8% of outstanding shares) after one month. However, among the overseas institutions, 45% of the shares that are locked up is for the one month period (0.55 million shares or 0.4% of the outstanding shares). As investors look forward to this event, we believe that there could be more selling on this stock in the coming days. </p>
<p>In our view, Kakao Pay still has ways to go before it reaches its bottom in share price. Over the next 6-12 months, we believe that Kakao Pay's share price could decline to our base/high case which is between 81,829 won and 103,366 won per share. At the current price of 153,500 won, this would represent a further downside risk of 33% to 47%. </p>
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In this insight, we discuss the end of the one-month lock-up period for Kakao Pay (377300 KS) and where the bottom level prices could be for this stock.
There are 1.09 million shares of Kakao Pay that are under the lockup period (0.8% of outstanding shares) after one month. However, among the overseas institutions, 45% of the shares that are locked up is for the one month period (0.55 million shares or 0.4% of the outstanding shares). As investors look forward to this event, we believe that there could be more selling on this stock in the coming days. 
In our view, Kakao Pay still has ways to go before it reaches its bottom in share price. Over the next 6-12 months, we believe that Kakao Pay's share price could decline to our base/high case which is between 81,829 won and 103,366 won per share. At the current price of 153,500 won, this would represent a further downside risk of 33% to 47%. 


Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Kakao Pay: End of the 1 Month Lock-Up Period & Where Is The Bottom for Share Price?

Kakaopay

Kakao Pay: End of the 1 Month Lock-Up Period & Where Is The Bottom for Share Price?