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

Kyochon F&B IPO Preview - Korean Fried Chicken At Its Best

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/kyochon-f-b-co-ltd" target="_blank" data-smartkarma-citation="entities:29682:1" rel="noopener">Kyochon F&amp;B Co (0657400D KS)</a> completed its IPO book building results and there were some good, bad, and ugly items that we will address in this insight. Despite the weaker IPO environment in Korea now versus 2-3 months ago, there is still a healthy demand for high-quality companies like Kyochon F&amp;B whose IPO price determined at 12,300 won (high end of IPO range). Our base case valuation of Kyochon F&amp;B is 410 billion won in implied market cap or 16,288 won per share, representing a 32% upside from the IPO price of 12,300 won over a one year period.THE GOOD - There were 1,109 institutions that participated in this IPO survey and the demand was very strong at 999 to 1. There were 258 foreign institutional investors that participated in this IPO survey, representing 23% of the total. In addition, 91.6% of the total IPO shares applied by the institutions thought that the intrinsic value of Kyochon F&amp;B was more than 12,300 won, which is a good sign.

Kyochon F&amp;B Co (0657400D KS) completed its IPO book building results and there were some good, bad, and ugly items that we will address in this insight. Despite the weaker IPO environment in Korea now versus 2-3 months ago, there is still a healthy demand for high-quality companies like Kyochon F&amp;B whose IPO price determined at 12,300 won (high end of IPO range). Our base case valuation of Kyochon F&amp;B is 410 billion won in implied market cap or 16,288 won per share, representing a 32% upside from the IPO price of 12,300 won over a one year period.THE GOOD - There were 1,109 institutions that participated in this IPO survey and the demand was very strong at 999 to 1. There were 258 foreign institutional investors that participated in this IPO survey, representing 23% of the total. In addition, 91.6% of the total IPO shares applied by the institutions thought that the intrinsic value of Kyochon F&amp;B was more than 12,300 won, which is a good sign. 

Kyochon F&B IPO Bookbuilding Results (Good, Bad, & The Ugly)