Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

SD Biosensor: Full Allocation Results, Index Floats, & Fast Entry Possibilities

SD Biosensor IPO: Offering Detail, Valuation Issue, & Index Fast Entry Possibilities

SD Biosensor Offering Price/Size Adjustment & Valuation Re-Review

SD Biosensor IPO: Improving Investor Sentiment & Valuation Rerating

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Equity Capital Markets


SD Biosensor's bookbuilding results are out. This IPO has greatly benefited from the spread of the delta mutant virus. In addition to determining the offering price at the upper end of the indicative price band, the offering volume was also raised according to the overflowing demand.
The offering price was set at ₩52,000, and the offering volume was also adjusted to 14.93M, which is close to the original offering. So, the size of this public offering is ₩776.4B, implying a market cap of ₩5.4T. The split ratio is the same as the existing ratio, 66.67% is the primary offering, and the remaining 33.33% is the secondary offering.









Indicative price band
High, previous
High, adjusted
Finalized


Price
₩85,000
₩52,000
₩52,000


Offering volume
15,552,900
12,442,200
14,930,400


Base deal size
₩1,322.0B
₩647.0B
₩776.4B


- Institutional allotment at 55%
₩727.1B
₩355.8B
₩427.0B


Implied market cap
₩8,813.3B
₩5,283.9B
₩5,370.1B

Source: DART











Offering size
Previous
Adjusted
Finalized


Pre-IPO SO
93,317,753
93,317,753
93,317,753


Offering
15,552,900
12,442,200
14,930,400


- % of SO
16.67%
13.33%
16.00%


Institutional allotment
55.00~75.00%
55.00~75.00%
55.00~75.00%


Primary
10,368,600
8,294,800
9,953,600


- %
66.67%
66.67%
66.67%


Secondary
5,184,300
4,147,400
4,976,800


Secondary %
33.33%
33.33%
33.33%


Post-IPO shares outstanding
103,686,353
101,612,553
103,271,353


Capital increase rate
11.11%
8.89%
10.67%


Dilution
10.00%
8.16%
9.64%

Source: DART


As many as 1,400 institutional investors participated in the bookbuilding. As a result, the competition ratio was 1,143.76 to 1. Again, the demand far exceeds what is allocated, although not as overly hot as the previous mega IPO, SK IE Technology.









Name
Ticker
IPO date
Offering size (₩B)
Bookbuilding subscription rate


SD Biosensor
361610
TBA
776.4
1,143.76 to 1


SK IE Technology
361610
2021.05.11
2,246.0
1,882.88 to 1


SK Bioscience Co Ltd
302440
2021.03.18
1,491.8
1,274.50 to 1


HYBE Co Ltd
352820
2020.10.15
962.6
1,117.00 to 1


Kakao Games Corp
293490
2020.09.10
384.0
1,478.50 to 1


SK Biopharmaceuticals Co Ltd
326030
2020.07.02
959.3
835.00 to 1

Source: DART


It is noteworthy that the participation of relatively long-term-oriented local institutions was high in this IPO. This is compared to the fact that the participation of local hedge funds was significantly high in the last SK IE Technology IPO.










By investor type
Institution
%
Demand
%


Local public offering funds
517
37.22%
3,669,443,000
39.07%


Local brokergeas/investment advisories
40
2.88%
280,513,000
2.99%


Local pension/bank/insurance
445
32.04%
3,075,688,000
32.75%


Local others (mostly hedge funds)
130
9.36%
846,733,000
9.02%


Foreign (foreign IPO &amp; hedge funds)
72
5.18%
407,868,500
4.34%


Foreign others (local hot money)
185
13.32%
1,112,030,000
11.84%


Total
1,389
100.00%
9,392,275,500
100.00%


Subscription rate
1,143.76

Source: DART



The "Unspecified" category usually indicates that they want the shares above the high end. With that in mind, 28.37% must have priced at the high end or above. The remaining 71.42% isn't that far either. Nearly all of the remaining went for a 75-100% of the high end.










By price
Institution
%
Demand
%


Above high end
341
24.55%
2,244,274,000
23.89%


75-100% of high end
992
71.42%
6,787,533,500
72.27%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
3
0.22%
5,000
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
53
3.82%
360,463,000
3.84%


Total
1,389
100.00%
9,392,275,500
100.00%

Source: DART




SD Biosensor Bookbuilding Results: The First Case of Disclosing Lockup Info in Detail