IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank-ltd" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> at JPY4,900 per share, a 23.0% premium to the last close.</li>
<li>Irrevocables from the two largest shareholders, representing a 68.38% ownership ratio, ensure a done deal as it exceeds the required 66.67% ownership ratio to pass the EGM share consolidation vote.</li>
<li>The offer is attractive compared to historical trading ranges and peer multiples. The tender offer runs from 30 May to 10 July (30 business days).</li>
</ul>



SBI Sumishin Net Bank (7163 JP) has recommended a tender offer from NTT (Nippon Telegraph &amp; Telephone) (9432 JP) at JPY4,900 per share, a 23.0% premium to the last close.
Irrevocables from the two largest shareholders, representing a 68.38% ownership ratio, ensure a done deal as it exceeds the required 66.67% ownership ratio to pass the EGM share consolidation vote.
The offer is attractive compared to historical trading ranges and peer multiples. The tender offer runs from 30 May to 10 July (30 business days).


SBI Sumishin Net Bank (7163 JP): NTT’s (9432 JP) JPY4,900 Tender Offer a Done Deal

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>Chosun Business Daily mentioned that K Bank IPO book building results among institutional investors have been very poor so far. </li>
<li>As a result, the bankers and K Bank are currently considering on potentially reducing the IPO price to about 8,500 won or even cancelling the IPO altogether. </li>
<li>Our base case valuation of K Bank is target price of 9,151 won per share. Even if the IPO is priced at 8,500 won, we would pass on this IPO.</li>
</ul>


Chosun Business Daily mentioned that K Bank IPO book building results among institutional investors have been very poor so far. 
As a result, the bankers and K Bank are currently considering on potentially reducing the IPO price to about 8,500 won or even cancelling the IPO altogether. 
Our base case valuation of K Bank is target price of 9,151 won per share. Even if the IPO is priced at 8,500 won, we would pass on this IPO.


K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/k-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:36073:1" rel="noopener">K Bank (279570 KS)</a> is a Korean internet bank. It has launched an IPO to raise up to US$734 million.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/k-bank-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:160037" rel="noopener">K Bank IPO: The Bear Case</a> and <a href="https://www.smartkarma.com/insights/k-bank-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:159133" rel="noopener">K Bank IPO: The Bull Case</a>. 
</li>
<li>We examine the syndicate's valuation methodology. Our analysis suggests that K Bank is unattractively valued in the IPO price range. We would pass on the IPO.</li>
</ul>



K Bank (279570 KS) is a Korean internet bank. It has launched an IPO to raise up to US$734 million.
We previously discussed the IPO in K Bank IPO: The Bear Case and K Bank IPO: The Bull Case. 

We examine the syndicate's valuation methodology. Our analysis suggests that K Bank is unattractively valued in the IPO price range. We would pass on the IPO.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/k-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:36073:1" rel="noopener">K Bank (279570 KS)</a> is a Korean internet bank. It has launched an IPO to raise up to US$734 million.</li>
<li>In <a href="https://www.smartkarma.com/insights/k-bank-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:159133" rel="noopener">K Bank IPO: The Bull Case</a>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The bear case rests on rising competitive intensity, the smallest deposit base among Internet banks, below-peer loan book growth, and a high-risk crypto play due to the Dunamu partnership.</li>
</ul>



K Bank (279570 KS) is a Korean internet bank. It has launched an IPO to raise up to US$734 million.
In K Bank IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on rising competitive intensity, the smallest deposit base among Internet banks, below-peer loan book growth, and a high-risk crypto play due to the Dunamu partnership.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/k-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:36073:1" rel="noopener">K Bank (279570 KS)</a> is a Korean internet bank. It has launched an IPO to raise up to US$734 million. </li>
<li>K Bank began operations in April 2017 as the first internet-only bank in Korea. <a href="https://www.smartkarma.com/entities/kt-corp" target="_blank" rel="noopener">KT Corp (030200 KS)</a> and <a href="https://www.smartkarma.com/entities/woori-bank" target="_blank" rel="noopener">Woori Bank (000030 KS)</a> are the two largest shareholders.</li>
<li>The bull case rests on rising market share, solid deposit growth, robust loan book growth, stable NIM, rising margins and a low NPL ratio.</li>
</ul>



K Bank (279570 KS) is a Korean internet bank. It has launched an IPO to raise up to US$734 million. 
K Bank began operations in April 2017 as the first internet-only bank in Korea. KT Corp (030200 KS) and Woori Bank (000030 KS) are the two largest shareholders.
The bull case rests on rising market share, solid deposit growth, robust loan book growth, stable NIM, rising margins and a low NPL ratio.


United States

The Bancorp, Inc. is the holding company for The Bancorp Bank. The Bank offers services including interest bearing checking accounts, a full line of loan products, and online bill payment. The Bancorp Bank operates in Wilmington, Delaware and Philadelphia, Pennsylvania.

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Bancorp Inc/The (TBBK US)

SBI Sumishin Net Bank (7163 JP): NTT’s (9432 JP) JPY4,900 Tender Offer a Done Deal

Irrevocables from the two largest shareholders ensure a done deal. The offer is attractive compared to historical trading ranges and peer multiples.

Arun George

K Bank IPO Bookbuilding: To Price Lower than Low IPO Price Range or Even Potential Cancellation

K Bank IPO book building results among institutional investors has been very poor so far. K Bank is considering on reducing the IPO price to about...

Douglas Kim

K Bank IPO: Valuation Insights

We examine the syndicate's valuation methodology. Our analysis suggests that K Bank is unattractively valued in the IPO price range. We would pass...

Arun George

K Bank IPO: The Bear Case

The bear case rests on rising competitive intensity, the smallest deposit base among Internet banks, below-peer loan book growth, and a high-risk...

Arun George

K Bank IPO: The Bull Case

The bull case rests on rising market share, solid deposit growth, robust loan book growth, stable NIM, rising margins and a low NPL ratio.

Arun George

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