Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Seoul Guarantee Insurance / Equity Capital Markets

<ul>
<li>Our base case valuation of Seoul Guarantee Insurance is target price of 32,463 won per share, which is 2.1% higher than the high end of the IPO price range. </li>
<li>All in all, we are not particularly impressed with SGIC's lack of top-line sales growth and worsening operating profit and margins in 1Q-3Q 2024. </li>
<li>Despite the much lower IPO price range and a promise for higher shareholder returns, we remain Negative on this IPO. </li>
</ul>


Our base case valuation of Seoul Guarantee Insurance is target price of 32,463 won per share, which is 2.1% higher than the high end of the IPO price range. 
All in all, we are not particularly impressed with SGIC's lack of top-line sales growth and worsening operating profit and margins in 1Q-3Q 2024. 
Despite the much lower IPO price range and a promise for higher shareholder returns, we remain Negative on this IPO. 


APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seoul-guarantee-insurance-co" target="_blank" data-smartkarma-citation="entities:40123:1" rel="noopener">Seoul Guarantee Insurance (031210 KS)</a> is looking to raise around US$155m in its Korean IPO. </li>
<li>Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.</li>
<li>In this note, we discuss its recent financials, and share our updated thoughts on valuation.</li>
</ul>



Seoul Guarantee Insurance (031210 KS) is looking to raise around US$155m in its Korean IPO. 
Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
In this note, we discuss its recent financials, and share our updated thoughts on valuation.


Seoul Guarantee Insurance Pre-IPO Updated Thoughts on Valuation - Weaker Performance than Expected

<ul>
<li>Seoul Guarantee Insurance (031210 KS) stated today that it will cancel its IPO mainly due to low demand.</li>
<li>Despite the company's emphasis on high dividends and high ROA of 5.8% in 2022 (5x average ROA of the domestic non-life insurance companies), many institutional investors emphasized on the negatives.</li>
<li>The major negatives include high interest rates, lack of growth potential, concerns about additional shares sale overhang, and unattractive valuations. </li>
</ul>


Seoul Guarantee Insurance (031210 KS) stated today that it will cancel its IPO mainly due to low demand.
Despite the company's emphasis on high dividends and high ROA of 5.8% in 2022 (5x average ROA of the domestic non-life insurance companies), many institutional investors emphasized on the negatives.
The major negatives include high interest rates, lack of growth potential, concerns about additional shares sale overhang, and unattractive valuations. 


Seoul Guarantee Insurance Corp IPO - Cancelled

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seoul-guarantee-insurance-co" target="_blank" data-smartkarma-citation="entities:40123:1" rel="noopener">Seoul Guarantee Insurance (031210 KS)</a> is looking to raise around US$270m in its Korean IPO.</li>
<li>Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.</li>
<li>We have looked at the firm’s past performance and undertaken a peer comparison in earlier notes. In this note, we discuss our thoughts on valuation.</li>
</ul>



Seoul Guarantee Insurance (031210 KS) is looking to raise around US$270m in its Korean IPO.
Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
We have looked at the firm’s past performance and undertaken a peer comparison in earlier notes. In this note, we discuss our thoughts on valuation.


Seoul Guarantee Insurance Pre-IPO Thoughts on Valuation - Needs a Discount to Its Larger Peers

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/seoul-guarantee-insurance-co" target="_blank" data-smartkarma-citation="entities:40123:1" rel="noopener">Seoul Guarantee Insurance (031210 KS)</a>, a leading guarantee provider in Korea, is pre-marketing an IPO to raise up to KRW362 billion (US$272 million).</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/seoul-guarantee-insurance-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:113213" rel="noopener">Seoul Guarantee Insurance IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/seoul-guarantee-insurance-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:113296" rel="noopener">Seoul Guarantee Insurance IPO: The Bear Case</a>. </li>
<li>In this note, we look at the syndicate's valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.</li>
</ul>



Seoul Guarantee Insurance (031210 KS), a leading guarantee provider in Korea, is pre-marketing an IPO to raise up to KRW362 billion (US$272 million).
We previously discussed the IPO in Seoul Guarantee Insurance IPO: The Bull Case and Seoul Guarantee Insurance IPO: The Bear Case. 
In this note, we look at the syndicate's valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.


Seoul Guarantee Insurance IPO: Valuation Insights

South Korea

DB Insurance Co.,Ltd provides insurance services. The Company offers automotive insurance, long term casualty insurance, property insurance, fire and marine insurance, and other services. DB Insurance provides services in Korea.

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DB Insurance (005830 KS)

SGIC IPO Valuation Analysis

Our base case valuation of Seoul Guarantee Insurance is target price of 32,463 won per share, which is 2.1% higher than the high end of the IPO...

Douglas Kim

Seoul Guarantee Insurance Pre-IPO Updated Thoughts on Valuation - Weaker Performance than Expected

Seoul Guarantee Insurance (031210 KS) is looking to raise around US$155m in its Korean IPO. In this note, we discuss its recent financials, and...

Clarence Chu

Seoul Guarantee Insurance Corp IPO - Cancelled

Seoul Guarantee Insurance cancelled IPO due to low demand as institutional investors highlighted negatives including interest rates, lack of...

Douglas Kim

Seoul Guarantee Insurance Pre-IPO Thoughts on Valuation - Needs a Discount to Its Larger Peers

SGI has opened the books for its US$268m IPO. Bookbuild is expected to run till 19th October with pricing slated for 23rd October.

Clarence Chu

Seoul Guarantee Insurance IPO: Valuation Insights

In this note, we look at the syndicate's valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we...

Arun George

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52-week Range

Market Cap (USDm)

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SGIC IPO Valuation Analysis

Our base case valuation of Seoul Guarantee Insurance is target price of 32,463 won per share, which is 2.1% higher than the high end of the IPO...

Douglas Kim

Seoul Guarantee Insurance Pre-IPO Updated Thoughts on Valuation - Weaker Performance than Expected

Seoul Guarantee Insurance (031210 KS) is looking to raise around US$155m in its Korean IPO. In this note, we discuss its recent financials, and...

Clarence Chu

Seoul Guarantee Insurance Corp IPO - Cancelled

​Seoul Guarantee Insurance cancelled IPO due to low demand as institutional investors highlighted negatives including interest rates, lack of...

Douglas Kim

Seoul Guarantee Insurance Pre-IPO Thoughts on Valuation - Needs a Discount to Its Larger Peers

SGI has opened the books for its US$268m IPO. Bookbuild is expected to run till 19th October with pricing slated for 23rd October.

Clarence Chu

Seoul Guarantee Insurance IPO: Valuation Insights

In this note, we look at the syndicate's valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we...

Arun George

Seoul Guarantee Insurance cancelled IPO due to low demand as institutional investors highlighted negatives including interest rates, lack of...