Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>Our base case valuation of K Bank is target price of 9,151 won per share, which is 4% lower than the low end of the IPO price range. </li>
<li>Given the lack of upside in our target price relative to the IPO price range, we would avoid in subscribing to the IPO.</li>
<li>Our base case valuation is based on 1.6x P/B multiple using the company's equity post IPO (2.35 trillion won). </li>
</ul>


Our base case valuation of K Bank is target price of 9,151 won per share, which is 4% lower than the low end of the IPO price range. 
Given the lack of upside in our target price relative to the IPO price range, we would avoid in subscribing to the IPO.
Our base case valuation is based on 1.6x P/B multiple using the company's equity post IPO (2.35 trillion won). 


Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

<ul>
<li>Compared to its overseas peers, K-Bank’s high valuation still stands out due to a significant gap in net income size relative to market cap.</li>
<li>The offering structure, with 50% secondary sales and weak lock-up commitments, means post-IPO float could spike to around 40%, making a stock price bump unlikely.</li>
<li>K-Bank’s crypto-focused model might attract investors valuing it as a crypto play, potentially influencing IPO pricing and post-listing stock performance.</li>
</ul>


Compared to its overseas peers, K-Bank’s high valuation still stands out due to a significant gap in net income size relative to market cap.
The offering structure, with 50% secondary sales and weak lock-up commitments, means post-IPO float could spike to around 40%, making a stock price bump unlikely.
K-Bank’s crypto-focused model might attract investors valuing it as a crypto play, potentially influencing IPO pricing and post-listing stock performance.


K-Bank’s IPO Details Out: Aggressive Pricing, but as a Crypto Play, It Might Surprise

<ul>
<li>K Bank finally provided its IPO prospectus which includes more details of the IPO than what the company already announced about the IPO several days ago. </li>
<li>Bankers used KakaoBank, SBI Sumishin Net Bank, and Bancorp Inc as comps. Average PBR of 2.56x was used to value K Bank. </li>
<li>Some investors will question the inclusion of overseas comps including SBI Sumishin Net Bank and Bancorp in the valuation of K Bank.</li>
</ul>


K Bank finally provided its IPO prospectus which includes more details of the IPO than what the company already announced about the IPO several days ago. 
Bankers used KakaoBank, SBI Sumishin Net Bank, and Bancorp Inc as comps. Average PBR of 2.56x was used to value K Bank. 
Some investors will question the inclusion of overseas comps including SBI Sumishin Net Bank and Bancorp in the valuation of K Bank.


External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

<ul><li>Author recommends shorting TBBK due to stretched valuation, unsustainable earnings, vulnerable loan book, and signs of aggressive accounting</li><li>TBBK benefits from a cheap deposit base and generates revenue through transaction fees on prepaid cards and interest income from lending activities</li><li>TBBK competes with various financial institutions in specialty lending lines such as real estate bridge loans, SBLOC, IBLOC, advisor financing, small business loans, and direct lease financing</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Author recommends shorting TBBK due to stretched valuation, unsustainable earnings, vulnerable loan book, and signs of aggressive accountingTBBK benefits from a cheap deposit base and generates revenue through transaction fees on prepaid cards and interest income from lending activitiesTBBK competes with various financial institutions in specialty lending lines such as real estate bridge loans, SBLOC, IBLOC, advisor financing, small business loans, and direct lease financingThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Bancorp Inc (TBBK) - Thursday, Dec 7, 2023

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rakuten-bank-ltd" target="_blank" data-smartkarma-citation="entities:35638:1" rel="noopener">Rakuten Bank (5838 JP)</a> priced its IPO at JPY1,400 per share to raise gross proceeds of US$620 million. The shares will start trading on 21 April.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/rakuten-bank-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:98721" rel="noopener">Rakuten Bank IPO: The Investment Case</a>, <a href="https://www.smartkarma.com/insights/rakuten-bank-vs-sbi-sumishin-net-bank" target="_blank" data-smartkarma-citation="insights:98866" rel="noopener">Rakuten Bank Vs SBI Sumishin Net Bank</a> and <a href="https://www.smartkarma.com/insights/rakuten-bank-ipo-new-price-range-is-a-steal" target="_blank" data-smartkarma-citation="insights:99581" rel="noopener">Rakuten Bank IPO: New Price Range Is a Steal</a>. </li>
<li>Peers have re-rated and our valuation analysis points to a fair value of around JPY1,900 per share, 36% above the IPO price. Therefore, the IPO price remains attractive.</li>
</ul>



Rakuten Bank (5838 JP) priced its IPO at JPY1,400 per share to raise gross proceeds of US$620 million. The shares will start trading on 21 April.
We previously discussed the IPO in Rakuten Bank IPO: The Investment Case, Rakuten Bank Vs SBI Sumishin Net Bank and Rakuten Bank IPO: New Price Range Is a Steal. 
Peers have re-rated and our valuation analysis points to a fair value of around JPY1,900 per share, 36% above the IPO price. Therefore, the IPO price remains attractive.


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)

K Bank IPO Valuation Analysis

Our base case valuation of K Bank is target price of 9,151 won per share, which is 4% lower than the low end of the IPO price range. We would avoid...

Douglas Kim

K-Bank’s IPO Details Out: Aggressive Pricing, but as a Crypto Play, It Might Surprise

This post breaks down K-Bank’s IPO prospectus, released late yesterday, and reviews the aggressive valuation, which could surprise if seen through...

Sanghyun Park

K Bank IPO Preview

K Bank provided its IPO prospectus which has more details of the IPO than what the company already announced about the IPO several days ago....

Douglas Kim

Bancorp Inc (TBBK) - Thursday, Dec 7, 2023

Author recommends shorting TBBK due to stretched valuation, unsustainable earnings, vulnerable loan book, and signs of aggressive accounting

Value Investors Club (VIC)

Rakuten Bank IPO: Trading Debut

Peers have re-rated and our valuation analysis points to a fair value of around JPY1,900 per share, 36% above the IPO price. Therefore, the IPO...

Arun George

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