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 for Lemon IPO Post Pricing

Metanet Mplatform IPO Valuation & Interest Levels of Lemon, JNTC, Metanet Mplatform, & NPD IPOs

Event-Driven

<div class="content-highlight"><ul>
<li>In the midst of the difficult environment of the COVID-19 virus-related fears, there have been a few IPOs in Korea this year that have received very strong demand from the institutional investors including <a href="https://www.smartkarma.com/entities/jntc-co-ltd" target="_blank" data-smartkarma-citation="entities:28825:1" rel="noopener">JNTC Co Ltd (204270 KS)</a>, suggesting that the investors are willing to back a few companies with world-class products.</li>
<li>We have a positive view of the JNTC IPO. JNTC successfully completed its IPO book-building from institutional investors. The JNTC IPO will start trading next on 4 March. The IPO price is 11,000 won, which is 5% higher than the high-end of the IPO price range of 10,500 won. The institutional investors' demand ratio was exceptionally strong at 1,078 to 1. </li>
<li>Our base case valuation of the company is 12,471 won, which is 13% higher than the IPO price of 11,000 won. Given the exceptional demand for the IPO shares, we believe that the shares are likely to trade in the mid-to-high end of our IPO valuation sensitivity analysis which ranges from about 12,500 won to 15,000 won. </li>
</ul></div>


In the midst of the difficult environment of the COVID-19 virus-related fears, there have been a few IPOs in Korea this year that have received very strong demand from the institutional investors including JNTC Co Ltd (204270 KS), suggesting that the investors are willing to back a few companies with world-class products.
We have a positive view of the JNTC IPO. JNTC successfully completed its IPO book-building from institutional investors. The JNTC IPO will start trading next on 4 March. The IPO price is 11,000 won, which is 5% higher than the high-end of the IPO price range of 10,500 won. The institutional investors' demand ratio was exceptionally strong at 1,078 to 1. 
Our base case valuation of the company is 12,471 won, which is 13% higher than the IPO price of 11,000 won. Given the exceptional demand for the IPO shares, we believe that the shares are likely to trade in the mid-to-high end of our IPO valuation sensitivity analysis which ranges from about 12,500 won to 15,000 won. 


Trading Strategy for JNTC IPO Post Pricing