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

Trading Strategy of SK Bioscience IPO Post Pricing

SK Bioscience IPO: Bookbuilding Results & KOSPI 200 Fast Entry

SK Bioscience IPO: KOSPI200 Inclusion Certain; MSCI/FTSE Is a No Go; Watch SK Chem

SK Bioscience IPO Preview - Biggest IPO in Korea in 1Q 2021

Initial Thoughts on the SK Bioscience IPO - Backed by Bill Gates

SK Bioscience IPO: Fast Index Entry Possibilities

XI Jinping/ US-China/ Fintech/ Vaccines/ Chunyun

Equity Capital Markets

<div class="content-highlight"><div>Over a 6-12 months view, we believe that SK Bioscience's market cap value could be about 11.5 trillion won or 149,000 won per share. At a market cap of 11.5 trillion won for SK Bioscience, this would suggest a P/S multiple of 11.5x (30% discount to the average P/S multiple of its comps in 2022) assuming annual revenue of 1 trillion won for the company. </div></div><p><strong>Our base case value of 149,000 won per share would represent 129% higher than the high end IPO price of 65,000 won</strong>. Given such a high upside versus the IPO price, we have a <strong>POSITIVE</strong> view of this IPO.</p><p>Remember, the key investment merits of SK Bioscience is that it is a company which has been picked by AstraZeneca and NovaVax to produce COVID-19 vaccines and there is a good chance that other major global biopharm companies may select SK Bioscience for additional COVID-19 vaccines production.</p>

Over a 6-12 months view, we believe that SK Bioscience's market cap value could be about 11.5 trillion won or 149,000 won per share. At a market cap of 11.5 trillion won for SK Bioscience, this would suggest a P/S multiple of 11.5x (30% discount to the average P/S multiple of its comps in 2022) assuming annual revenue of 1 trillion won for the company. Our base case value of 149,000 won per share would represent 129% higher than the high end IPO price of 65,000 won. Given such a high upside versus the IPO price, we have a POSITIVE view of this IPO.Remember, the key investment merits of SK Bioscience is that it is a company which has been picked by AstraZeneca and NovaVax to produce COVID-19 vaccines and there is a good chance that other major global biopharm companies may select SK Bioscience for additional COVID-19 vaccines production.

SK Bioscience

SK Bioscience IPO - Valuation Analysis