Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Flitto: AI-Driven, Big Data Langugage & Translation Services

Saltlux IPO Preview: A Legit Player in the AI/Big Data Sector in Korea

Equity Capital Markets

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<p><strong>Vaiv Company</strong> is getting ready for an IPO on the KOSDAQ exchange in the coming weeks. Vaiv Company, which specializes in artificial intelligence and big data, was recently renamed from Daum Soft previously.</p>
<p>There is likely to be a healthy demand for this IPO driven by the company's solid technology in AI &amp; big data analysis, strong backers (including Kakao Corp), and recent solid share price performance of one of its competitors Saltlux (304100 KS), whose share price is up 18% from its IPO price (it was up as much as 90%+ from its IPO price).</p>
</div><p>The bankers used two companies including Wise I-tech and Selvas AI as comparable companies to Vaiv Co. Using their annualized net profit from 3Q 2019 to 2Q 2020 and applying their recent prices, the average P/E of 28.6x was derived. The bankers then applied Viav's estimated net profit of 8.6 billion won in 2022 and discounted this at a 15% cost of capital to derive the present value of 6 billion won or EPS of 1,059 won. Applying a P/E of 28.6x results in an implied price per share of 30,348 won. Applying an additional IPO discount range of 7.7% - 24.2% results in an IPO price range of 23,000 won to 28,000 won. </p>


Vaiv Company is getting ready for an IPO on the KOSDAQ exchange in the coming weeks. Vaiv Company, which specializes in artificial intelligence and big data, was recently renamed from Daum Soft previously.
There is likely to be a healthy demand for this IPO driven by the company's solid technology in AI &amp; big data analysis, strong backers (including Kakao Corp), and recent solid share price performance of one of its competitors Saltlux (304100 KS), whose share price is up 18% from its IPO price (it was up as much as 90%+ from its IPO price).
The bankers used two companies including Wise I-tech and Selvas AI as comparable companies to Vaiv Co. Using their annualized net profit from 3Q 2019 to 2Q 2020 and applying their recent prices, the average P/E of 28.6x was derived. The bankers then applied Viav's estimated net profit of 8.6 billion won in 2022 and discounted this at a 15% cost of capital to derive the present value of 6 billion won or EPS of 1,059 won. Applying a P/E of 28.6x results in an implied price per share of 30,348 won. Applying an additional IPO discount range of 7.7% - 24.2% results in an IPO price range of 23,000 won to 28,000 won. 

VAIV Co Inc

Vaiv Company (Daum Soft) IPO Preview