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

<p>In this insight, we provide the details of the Wanted Lab IPO, which received higher amounts of retail deposit interest than the Krafton IPO. Wanted Lab's IPO price has been determined at 35,000 won and at this price, Wanted Lab's market cap would be 165 billion won. The Wanted Lab IPO will start trading on 11 August. The IPO base deal size is $22 million. The lead underwriter of this IPO is Korea Investment &amp; Securities.</p>
<h2>Comparison of Wanted Lab vs. Krafton IPO Retail Demand</h2>
<p>The retail demand ratio of the Wanted Lab IPO was <strong>1,731 to 1</strong> and there were<strong> 5.5 trillion won</strong> in retail money deposits that were gathered for this IPO. </p>
<p>Krafton's IPO price has been determined at 498,000 won and at this price, Krafton's market cap would be 25 trillion won. Retail demand ratio of the Krafton IPO was <strong>7.8 to 1</strong> and there were <strong>5.03 trillion won</strong> in retail money deposits that were gathered for this IPO.</p>
<ul>
<li>Clearly, the Korean retail investors have a much more positive view of Wanted Lab versus Krafton.</li>
<li>The enormous interest in Wanted Lab is especially revealing, considering the fact at their current IPO prices, Wanted Lab's market cap is only <strong>0.7%</strong> of Krafton's market cap.  </li>
</ul>
<table class="table table-striped">
<colgroup> <col> <col> </colgroup>
<tbody>
<tr>
<td colspan="2" style="width: 448pt;">
<div><strong>Deal Specifics of the Wanted Lab IPO:</strong></div>
</td>
</tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 234pt;">Korea Investment &amp; Securities</td>
</tr>
<tr>
<td>IPO price per share: </td>
<td style="width: 234pt;">35,000 won</td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 234pt;">0.73mn (0.53mn new shares; 0.20mn old shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 234pt;">US$22mn </td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 234pt;">4.72m shares</td>
</tr>
<tr>
<td>Expected market cap after IPO:</td>
<td style="width: 234pt;">165 billion won</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 234pt;">11-Aug-21</td>
</tr>
<tr>
<td>Source: Company data</td>
<td> </td>
</tr>
</tbody>
</table>

In this insight, we provide the details of the Wanted Lab IPO, which received higher amounts of retail deposit interest than the Krafton IPO. Wanted Lab's IPO price has been determined at 35,000 won and at this price, Wanted Lab's market cap would be 165 billion won. The Wanted Lab IPO will start trading on 11 August. The IPO base deal size is $22 million. The lead underwriter of this IPO is Korea Investment &amp; Securities.
Comparison of Wanted Lab vs. Krafton IPO Retail Demand
The retail demand ratio of the Wanted Lab IPO was 1,731 to 1 and there were 5.5 trillion won in retail money deposits that were gathered for this IPO. 
Krafton's IPO price has been determined at 498,000 won and at this price, Krafton's market cap would be 25 trillion won. Retail demand ratio of the Krafton IPO was 7.8 to 1 and there were 5.03 trillion won in retail money deposits that were gathered for this IPO.

Clearly, the Korean retail investors have a much more positive view of Wanted Lab versus Krafton.
The enormous interest in Wanted Lab is especially revealing, considering the fact at their current IPO prices, Wanted Lab's market cap is only 0.7% of Krafton's market cap.  


   



Deal Specifics of the Wanted Lab IPO:



Lead underwriters of the IPO: 
Korea Investment &amp; Securities


IPO price per share: 
35,000 won


Number of Shares for IPO:
0.73mn (0.53mn new shares; 0.20mn old shares)


IPO base deal size: 
US$22mn 


Expected common shares outstanding, fully diluted (post-IPO):  
4.72m shares


Expected market cap after IPO:
165 billion won


Listing date: 
11-Aug-21


Source: Company data
 




Wanted Lab IPO - More Retail Interest than the Krafton IPO

Wantedlab

Wanted Lab IPO - More Retail Interest than the Krafton IPO