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

Snapchat Parent Is Preparing for an IPO in 1H17 - Impact on SNOW, Naver, & LINE

Thoughts on Naver Line's IPO Price and Price Movement After IPO

Equity Bottom-Up

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<strong>It was reported today that <a href="https://www.smartkarma.com/entities/22772" target="_blank" data-smartkarma-citation="entities:22772:1">LINE Corp (3938 JP)</a> will buy a 25% stake in SNOW for about 50 billion won (US$45 million).</strong> SNOW is a wholly owned company of <a href="https://www.smartkarma.com/entities/16029" target="_blank" data-smartkarma-citation="entities:16029:1">Naver Corp (035420 KS)</a>. This would put the private market value of SNOW at around US$180 million. Post this transaction, Naver has the remaining 75% stake in SNOW. We continue to have a positive view on LINE Corp. It is interesting how SNOW chose to receive its funding from Line Corp, instead of from Naver directly. Regardless, the amount is not…</li></ul>


It was reported today that LINE Corp (3938 JP) will buy a 25% stake in SNOW for about 50 billion won (US$45 million). SNOW is a wholly owned company of Naver Corp (035420 KS). This would put the private market value of SNOW at around US$180 million. Post this transaction, Naver has the remaining 75% stake in SNOW. We continue to have a positive view on LINE Corp. It is interesting how SNOW chose to receive its funding from Line Corp, instead of from Naver directly. Regardless, the amount is not…

A Holdings

LINE Buys a 25% Stake in SNOW