Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Almac IPO is likely to benefit from the change in IPO regulations in Korea, which could result in a spike in its share price in the first day of trading.</li>
<li>Starting next week, the Korean IPO rules are changed so that the price limit on the newly listed companies will be expanded to 60-400% of the IPO price.</li>
<li>We believe Almac's shares could OVERSHOOT by more than 200-250% versus the IPO price on the first day of trading, which would be 150,000 won to 175,000 won per share.</li>
</ul>


Almac IPO is likely to benefit from the change in IPO regulations in Korea, which could result in a spike in its share price in the first day of trading.
Starting next week, the Korean IPO rules are changed so that the price limit on the newly listed companies will be expanded to 60-400% of the IPO price.
We believe Almac's shares could OVERSHOOT by more than 200-250% versus the IPO price on the first day of trading, which would be 150,000 won to 175,000 won per share.


Almac IPO: Change in IPO Regulation & Trading Strategy in First Day of Trading

<ul>
<li>Almac announced its IPO price of 50,000 won, which is 11% higher than the high end of the IPO price range. Demand ratio was very high at 1,697 to 1.</li>
<li>A 98.7% of the IPO shares applied thought that the company's value is more than 45,000 won</li>
<li>Given the exceptional demand for IPO shares, it is likely that the IPO share price is likely to trade at higher end of the IPO range in our sensitivity analysis.</li>
</ul>


Almac announced its IPO price of 50,000 won, which is 11% higher than the high end of the IPO price range. Demand ratio was very high at 1,697 to 1.
A 98.7% of the IPO shares applied thought that the company's value is more than 45,000 won
Given the exceptional demand for IPO shares, it is likely that the IPO share price is likely to trade at higher end of the IPO range in our sensitivity analysis.


<ul>
<li>Our target price of Almac is 58,573 won per share, which is 30% higher than the high end of the IPO price range of 45,000 won. </li>
<li>Our target price is based on 14.8x P/E using our estimated net profit of 25.4 billion won in 2024. </li>
<li>Almac ranks first in domestic market share (Korea) in the aluminum extruded module cases that protect batteries from external shocks.</li>
</ul>


Our target price of Almac is 58,573 won per share, which is 30% higher than the high end of the IPO price range of 45,000 won. 
Our target price is based on 14.8x P/E using our estimated net profit of 25.4 billion won in 2024. 
Almac ranks first in domestic market share (Korea) in the aluminum extruded module cases that protect batteries from external shocks.


<ul>
<li>Almac is getting ready to complete its IPO on KOSDAQ in June. Almac is one of the leading aluminum parts company for the electric vehicles. </li>
<li>The company ranks first in domestic market share in the aluminum extruded module cases that protect batteries from external shocks.</li>
<li>The company is offering 1 million new shares in this IPO. The IPO price range is from 40,000 won to 45,000 won.</li>
</ul>


Almac is getting ready to complete its IPO on KOSDAQ in June. Almac is one of the leading aluminum parts company for the electric vehicles. 
The company ranks first in domestic market share in the aluminum extruded module cases that protect batteries from external shocks.
The company is offering 1 million new shares in this IPO. The IPO price range is from 40,000 won to 45,000 won.


Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>At the current stage, with the three-month review period almost complete, there will likely be two additions and two deletions: </li>
<li>Additions: KG Mobility (003620 KS) &amp; Nexen Tire Corp (002350 KS) Deletions: Sebang Global Battery (004490 KS) &amp; Kumho HT Inc (214330 KS)</li>
<li>In the past few years, KRX Autos has shown a significant price impact for constituent changes on the rebalancing trading day. This pattern will likely repeat in the upcoming rebalancing.</li>
</ul>


At the current stage, with the three-month review period almost complete, there will likely be two additions and two deletions: 
Additions: KG Mobility (003620 KS) &amp; Nexen Tire Corp (002350 KS) Deletions: Sebang Global Battery (004490 KS) &amp; Kumho HT Inc (214330 KS)
In the past few years, KRX Autos has shown a significant price impact for constituent changes on the rebalancing trading day. This pattern will likely repeat in the upcoming rebalancing.


KRX Autos Sept Rebalancing: Less Known, Still Juicy Trading Event with 4 Constituent Changes

South Korea

Almac Co., Ltd. operates metal processing businesses. The Company provides aluminum rolling, extrusion, drawing, and other services. Almac conducts businesses in South Korea.

Almac (354320 KS)

Almac IPO: Change in IPO Regulation & Trading Strategy in First Day of Trading

We believe Almac's shares could OVERSHOOT by more than 200-250% versus the IPO price on the first day of trading, which would be 150,000 won to...

Douglas Kim

Almac IPO Bookbuilding Results Analysis

Almac announced its IPO price of 50,000 won, which is 11% higher than the high end of the IPO price range. Demand ratio was very high at 1,697 to 1.

Douglas Kim

Almac IPO Valuation Analysis

Our target price of Almac is 58,573 won per share, which is 30% higher than the high end of the IPO price range of 45,000 won.

Douglas Kim

Almac IPO Preview

Almac is getting ready to complete its IPO on KOSDAQ in June. Almac is one of the leading aluminum parts company for the electric vehicles.

Douglas Kim

KRX Autos Sept Rebalancing: Less Known, Still Juicy Trading Event with 4 Constituent Changes

The following are the September rebalancing results of KRX Autos with their respective estimated passive flow x ADTV, which will occur on Sept...

Sanghyun Park