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 Capital Markets

<a href="https://www.smartkarma.com/entities/npd-co-ltd" target="_blank" data-smartkarma-citation="entities:28833:1" rel="noopener">NPD Co Ltd (1302830D KS)</a> is a Korean company ready to complete its IPO in early March. NPD makes smartphone purpose FPCA (Flexible Printed Circuit Assembly) products and auto wiper blades. The IPO price range is from 5,400 won to 6,300 won. The IPO base deal size ranges from $34 million to $40 million.NPD's annualized net profit is 18.7 billion won in 2019 and applying P/E of 10.8x (average P/E of the comps), this results in an implied market cap of 203 billion won. The bankers then applied an IPO discount range of 33.2% to 42.7%, resulting in an IPO price range of 5,400 won to 6,300 won. At the low end of the IPO valuation range (5,400 won), this would imply a market cap of 116 billion won. Applying the company's annualized net profit of 18.7 billion won would suggest a P/E of 6.2x. NPD's sales and profits have been growing very nicely in the past five years. From 2015 to 2018, the company's sales increased by 30% CAGR. However, most of this sales growth came from the acquisition of Cap Co. auto wipers company in 2017.

NPD Co Ltd (1302830D KS) is a Korean company ready to complete its IPO in early March. NPD makes smartphone purpose FPCA (Flexible Printed Circuit Assembly) products and auto wiper blades. The IPO price range is from 5,400 won to 6,300 won. The IPO base deal size ranges from $34 million to $40 million.NPD's annualized net profit is 18.7 billion won in 2019 and applying P/E of 10.8x (average P/E of the comps), this results in an implied market cap of 203 billion won. The bankers then applied an IPO discount range of 33.2% to 42.7%, resulting in an IPO price range of 5,400 won to 6,300 won. At the low end of the IPO valuation range (5,400 won), this would imply a market cap of 116 billion won. Applying the company's annualized net profit of 18.7 billion won would suggest a P/E of 6.2x. NPD's sales and profits have been growing very nicely in the past five years. From 2015 to 2018, the company's sales increased by 30% CAGR. However, most of this sales growth came from the acquisition of Cap Co. auto wipers company in 2017. 

NPD Co Ltd

NPD Co IPO Preview