Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Koramco Energy Plus REIT / Equity Capital Markets

<div class="content-highlight">We have a Bullish view on this IPO mainly because this REIT has a stable structure with solid gas station assets that has a good probability of being able to generate 6% + annual dividends. Plus, the recent big property hikes in Korea is likely to lead to more investors who will be attracted to the stable REIT structure of this deal. We would take this deal. </div>Koramco Energy Plus REIT IPO is expected to be completed in Korea in the next few weeks. The expected IPO price per share is 5,000 won and there are 21.3 million shares offered in the IPO. The bookbuilding for the institutional investors starts on July 28th. This is an interesting IPO where the 187 gas stations acquired from SK Networks are used as the base assets for this REIT. This is the first major gas station related REIT in Korea. This REIT has established a stable profit structure by signing a long-term lease contract of at least 10 years (which can be extended another five years) with Hyundai Oilbank as the main tenant.

We have a Bullish view on this IPO mainly because this REIT has a stable structure with solid gas station assets that has a good probability of being able to generate 6% + annual dividends. Plus, the recent big property hikes in Korea is likely to lead to more investors who will be attracted to the stable REIT structure of this deal. We would take this deal. Koramco Energy Plus REIT IPO is expected to be completed in Korea in the next few weeks. The expected IPO price per share is 5,000 won and there are 21.3 million shares offered in the IPO. The bookbuilding for the institutional investors starts on July 28th. This is an interesting IPO where the 187 gas stations acquired from SK Networks are used as the base assets for this REIT. This is the first major gas station related REIT in Korea. This REIT has established a stable profit structure by signing a long-term lease contract of at least 10 years (which can be extended another five years) with Hyundai Oilbank as the main tenant.

IGIS Residence REIT Co Ltd / Equity Capital Markets

IGIS Residence REIT  is the second REIT IPO this year in Korea. The expected IPO price is 5,000 won and the IPO deal size is $75 million.  The expected market cap of the IPO is 89.5 billion won. The book-building for the institutional investors starts on 30 June 2020. IGIS Value Plus REIT is expected to be listed in July. The construction of the apartment complex in Buyeong, Incheon started in November 2018 and it is expected that it will be completed by April 2022. The IGIS Residence REIT IPO will invest in the IGIS #151 fund which will invest in 3,578 Incheon "Bupyeong the Sharp" branded private rental housing units.The expected annual dividend yield for the first eight years is 5.2% and including asset sales after 10 years, the annual expected annual returns (including dividends and capital gains) are 8.9%. In the first eight years, the rental yield is expected to be raised 3% in every two years.

IGIS Residence REIT  is the second REIT IPO this year in Korea. The expected IPO price is 5,000 won and the IPO deal size is $75 million.  The expected market cap of the IPO is 89.5 billion won. The book-building for the institutional investors starts on 30 June 2020. IGIS Value Plus REIT is expected to be listed in July. The construction of the apartment complex in Buyeong, Incheon started in November 2018 and it is expected that it will be completed by April 2022. The IGIS Residence REIT IPO will invest in the IGIS #151 fund which will invest in 3,578 Incheon "Bupyeong the Sharp" branded private rental housing units.The expected annual dividend yield for the first eight years is 5.2% and including asset sales after 10 years, the annual expected annual returns (including dividends and capital gains) are 8.9%. In the first eight years, the rental yield is expected to be raised 3% in every two years.

IGIS Value Plus REIT / Equity Capital Markets

<div class="content-highlight">
<a href="https://www.smartkarma.com/entities/igis-value-plus-reit" target="_blank" data-smartkarma-citation="entities:29023:1" rel="noopener">IGIS Value Plus REIT (IGIS KD)</a> is the first REIT IPO this year in Korea. The expected IPO price is 5,000 won and the IPO deal size is $99 million. The expected market cap of the IPO is 119 billion won. The book-building for the institutional investors starts on 10 June 2020. A 50% of the IPO offering is reserved for the institutions and the remaining 50% is reserved for the retail investors. Samsung Securities is the lead underwriter of this IPO. IGIS Value Plus REIT is expected to be listed in July. 
The expected dividend yield of this IPO is 6.4% annually for the next 10 years. The Taepyoungro building has excellent tenants including Samsung Electronics, Samsung Life Insurance, CJ Korea Express, and Hyundai F&amp;M Insurance. The vacancy rate is relatively low at 5.5% out of the total floor space of 40,001.8㎡. The building under consideration for this IGIS Value Plus REIT is the Taepyoungno building (see below). It has a great location (only a few minutes from the Seoul City Hall and subway stations).
We have a positive view on this IGIS Value Plus REIT IPO and including this stock in our model portfolio. 
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IGIS Value Plus REIT (IGIS KD) is the first REIT IPO this year in Korea. The expected IPO price is 5,000 won and the IPO deal size is $99 million. The expected market cap of the IPO is 119 billion won. The book-building for the institutional investors starts on 10 June 2020. A 50% of the IPO offering is reserved for the institutions and the remaining 50% is reserved for the retail investors. Samsung Securities is the lead underwriter of this IPO. IGIS Value Plus REIT is expected to be listed in July. 
The expected dividend yield of this IPO is 6.4% annually for the next 10 years. The Taepyoungro building has excellent tenants including Samsung Electronics, Samsung Life Insurance, CJ Korea Express, and Hyundai F&amp;M Insurance. The vacancy rate is relatively low at 5.5% out of the total floor space of 40,001.8㎡. The building under consideration for this IGIS Value Plus REIT is the Taepyoungno building (see below). It has a great location (only a few minutes from the Seoul City Hall and subway stations).
We have a positive view on this IGIS Value Plus REIT IPO and including this stock in our model portfolio. 


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