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

A Mismatch Between Krafton Immediate Float & Passive Inflow Quantity

Kakao Bank MSCI FIF Confirmed at 11%: Some Ideas of How MSCI Concluded It

MSCI's Fairly Arbitrary Float Judgment on Kakao Bank, & Potentially Krafton as Well?

Chinese Government to Crack Down on the Online Gaming Sector? A Big Negative for the Krafton IPO

Trading Strategy of Krafton IPO Post Bookbuilding Results

Equity Capital Markets

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<p>Krafton announced its ESOA (employee stock ownership association) allocation for the IPO shares today and the results were one of the worst among the major IPOs in the Korea in the past couple of years. The employees often know the best in terms of what's really going on in the companies they work for. The fact that the ESOA allocation for the IPO shares were so poor for Krafton adds to the NEGATIVE investment thesis on this IPO. </p>
<p>There were originally 1.74 million Krafton IPO shares that were allocated to ESOA. However, only 0.35 million shares were subscribed by the ESOA members, representing only 20% of the total available allocation. </p>
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Krafton announced its ESOA (employee stock ownership association) allocation for the IPO shares today and the results were one of the worst among the major IPOs in the Korea in the past couple of years. The employees often know the best in terms of what's really going on in the companies they work for. The fact that the ESOA allocation for the IPO shares were so poor for Krafton adds to the NEGATIVE investment thesis on this IPO. 
There were originally 1.74 million Krafton IPO shares that were allocated to ESOA. However, only 0.35 million shares were subscribed by the ESOA members, representing only 20% of the total available allocation. 


Krafton: Only 20% of Employee Stock Ownership Association Apply for the IPO Shares