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

Equity Bottom-Up

Korea Exchange (KRX) is the monopoly securities exchange operator in Korea.The potential IPO of Korea Exchange has been speculated numerous times in the past decade.  Now we believe the question is a matter of when, not if.Korea Exchange is owned mostly by the Korean securities companies. The Korea Exchange IPO is likely to result in a major positive catalyst to the Korean securities sector.The following are the major reasons as to why we believe a potential announcement of Korea Exchange IPO is likely by end of 2017: <ul><li>Global integration &amp; consolidation of stock markets around the world  </li><li>Korea does not like to fall behind Japan (Japan Exchange Group has become an excellent benchmark)</li><li>Korea Exchange - Classification as a private entity, rather than as a government entity</li><li>In the most recent National Assembly session, the efforts to bring about an IPO of Korea Exchange did not pass once again due to disagreements among many members of the National Assembly. However, the issue of the Korea Exchange IPO will be discussed once again the next National Assembly session. </li></ul>

Korea Exchange (KRX) is the monopoly securities exchange operator in Korea.The potential IPO of Korea Exchange has been speculated numerous times in the past decade.  Now we believe the question is a matter of when, not if.Korea Exchange is owned mostly by the Korean securities companies. The Korea Exchange IPO is likely to result in a major positive catalyst to the Korean securities sector.The following are the major reasons as to why we believe a potential announcement of Korea Exchange IPO is likely by end of 2017: Global integration &amp; consolidation of stock markets around the world  Korea does not like to fall behind Japan (Japan Exchange Group has become an excellent benchmark)Korea Exchange - Classification as a private entity, rather than as a government entityIn the most recent National Assembly session, the efforts to bring about an IPO of Korea Exchange did not pass once again due to disagreements among many members of the National Assembly. However, the issue of the Korea Exchange IPO will be discussed once again the next National Assembly session. 

Korea Exchange IPO - Question Is When, Not If