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

KMW - What's Up Next After Nokia Earnings Disaster?

KMW 3Q19 Earnings Review - A Big Decline in OP Margins on a QoQ Basis

Equity Capital Markets

Wireless Power Amplifier Module Inc. / Equity Capital Markets

Wireless Power Amplifier Module Inc. (332570 KS)

<a href="https://www.smartkarma.com/entities/wireless-power-amplifier-mod" target="_blank" data-smartkarma-citation="entities:29170:1" rel="noopener">Wireless Power Amplifier Mod (332570 KS)</a> ("Wipam") is getting ready to complete its IPO at the end of July. This company mainly produces wideband code division multiple access and other wireless power amplifier module products. The IPO price of the Wipam is from 9,700 won to 11,000 won. The IPO base deal size ranges from $60 million to $68 million. The bookbuilding for institutional investors starts on July 16th. Established in 2006, Wipam specializes in making specialized 5G equipment components. The company mainly manufactures high-performance power amplifiers (PAM), which is considered one of the core components that allow the implementation of the 5G communication network. Samsung Electronics is a key customer of the company.<div class="content-highlight">We use the comps' average P/E of 27x in 2019 to value Wipam. Applying this multiple to the company's net profit of 11.3 billion won in 2019 suggests an implied market cap of 307 billion won or implied price per share of 7,579 won. This would be 22% lower than the low end of the IPO price range of 9,700 won. Therefore, we would avoid this deal since the valuation of the IPO is priced too high. Among the recent IPOs in Korea, this IPO appears to be one of the least attractive ones. </div>

Wireless Power Amplifier Mod (332570 KS) ("Wipam") is getting ready to complete its IPO at the end of July. This company mainly produces wideband code division multiple access and other wireless power amplifier module products. The IPO price of the Wipam is from 9,700 won to 11,000 won. The IPO base deal size ranges from $60 million to $68 million. The bookbuilding for institutional investors starts on July 16th. Established in 2006, Wipam specializes in making specialized 5G equipment components. The company mainly manufactures high-performance power amplifiers (PAM), which is considered one of the core components that allow the implementation of the 5G communication network. Samsung Electronics is a key customer of the company.We use the comps' average P/E of 27x in 2019 to value Wipam. Applying this multiple to the company's net profit of 11.3 billion won in 2019 suggests an implied market cap of 307 billion won or implied price per share of 7,579 won. This would be 22% lower than the low end of the IPO price range of 9,700 won. Therefore, we would avoid this deal since the valuation of the IPO is priced too high. Among the recent IPOs in Korea, this IPO appears to be one of the least attractive ones. 

Wireless Power Amplifier Module Inc.

Wipam IPO - Avoid