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.

Event-Driven

<ul>
<li>A passive play opportunity for <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> is approaching.</li>
<li>Its float rate will likely be raised in the KOSPI 200 June rebalancing. Then, in the KOSPI 200 IT Sector Index, it will again experience the most significant passive inflow.</li>
<li>The recent share price volatility has increased considerably. So, instead of a preemptive position buildup, a shorter-window passive play seems more appropriate just before the rebalancing trading day.</li>
</ul>


A passive play opportunity for Kakao Pay (377300 KS) is approaching.
Its float rate will likely be raised in the KOSPI 200 June rebalancing. Then, in the KOSPI 200 IT Sector Index, it will again experience the most significant passive inflow.
The recent share price volatility has increased considerably. So, instead of a preemptive position buildup, a shorter-window passive play seems more appropriate just before the rebalancing trading day.


Kakao Pay Passive Play Opportunity on June 9

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Kakao Pay's six months end of the lock-up period comes up on 3 May, which could further put negative pressure on its share price. </li>
<li>Other factors including heightened competition, lack of margin improvement in 2021, and lifting nearly all social distancing measures in Korea are likely to further negatively impact Kakao Pay. </li>
<li>We expect additional 20 to 30%+ downside risk for Kakao Pay from current levels over the next 6-12 months. </li>
</ul>


Kakao Pay's six months end of the lock-up period comes up on 3 May, which could further put negative pressure on its share price. 
Other factors including heightened competition, lack of margin improvement in 2021, and lifting nearly all social distancing measures in Korea are likely to further negatively impact Kakao Pay. 
We expect additional 20 to 30%+ downside risk for Kakao Pay from current levels over the next 6-12 months. 


Kakao Pay: End of 6 Months Lock-Up Period Could Further Put Negative Pressure on Share Price

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Equity Capital Markets

<ul>
<li>SK Shieldus (SKS) aims to raise around US$800m via issuing a mix of primary and secondary shares in its Korea IPO.</li>
<li>SKS is the security subsidiary of SK Square. It provides security services across four main categories: information security/Cybersecurity, convergence security, physical security, and Safety &amp; Care.</li>
<li>In this note, we look at valuations for its main segments.</li>
</ul>


SK Shieldus (SKS) aims to raise around US$800m via issuing a mix of primary and secondary shares in its Korea IPO.
SKS is the security subsidiary of SK Square. It provides security services across four main categories: information security/Cybersecurity, convergence security, physical security, and Safety &amp; Care.
In this note, we look at valuations for its main segments.


<ul>
<li>SK Shieldus (SKS) aims to raise around US$800m via issuing a mix of primary and secondary shares in its Korea IPO.</li>
<li>SKS is the security subsidiary of SK Square. It provides security services across four main categories: information security/Cybersecurity, convergence security, physical security, and Safety &amp; Care.</li>
<li>In this note, we undertake a peer comparison for its two largest verticals.</li>
</ul>


SK Shieldus (SKS) aims to raise around US$800m via issuing a mix of primary and secondary shares in its Korea IPO.
SKS is the security subsidiary of SK Square. It provides security services across four main categories: information security/Cybersecurity, convergence security, physical security, and Safety &amp; Care.
In this note, we undertake a peer comparison for its two largest verticals.


SK Shieldus IPO - Peer Comparison - Better Top Line Growth, Worse Margin Decline

Private Capital Markets

<ul>
<li>Viva Republica (Toss), one of the largest fintech companies in Korea, is expected to become the first decacorn in Korea in 2Q 2022. </li>
<li>Toss is expected to have a value range of 10 trillion won to 15 trillion won in the upcoming funding round in 2Q 2022. </li>
<li>Kakao Bank has P/S multiple of 20.2x in 2021. Applying this multiple on Viva Republica's sales of 781 billion won, this would imply a valuation of 15.8 trillion won. </li>
</ul>


Viva Republica (Toss), one of the largest fintech companies in Korea, is expected to become the first decacorn in Korea in 2Q 2022. 
Toss is expected to have a value range of 10 trillion won to 15 trillion won in the upcoming funding round in 2Q 2022. 
Kakao Bank has P/S multiple of 20.2x in 2021. Applying this multiple on Viva Republica's sales of 781 billion won, this would imply a valuation of 15.8 trillion won. 


Viva Republica (Toss): To Become the First Decacorn in Korea

South Korea

Kakao Pay Corp. operates financial businesses. The Company provides online payment, currency encryption, and other services. Kakao Pay conducts businesses in South Korea.

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Kakaopay (377300 KS)

Kakao Pay Passive Play Opportunity on June 9

This post investigates Kakao Pay's passive play opportunity on June 9 when the KOSPI 200 and the KOSPI 200 Sector Indexes conduct rebalancing.

Sanghyun Park

SK Shieldus IPO - Fairly Valued, at Best

SK Shieldus (SKS) aims to raise around US$800m via issuing a mix of primary and secondary shares in its Korea IPO. In this note, we talk about...

Sumeet Singh

SK Shieldus IPO - Peer Comparison - Better Top Line Growth, Worse Margin Decline

SK Shieldus (SKS) aims to raise around US$800m via issuing a mix of primary and secondary shares in its Korea IPO. In this note, we undertake a...

Sumeet Singh

Viva Republica (Toss): To Become the First Decacorn in Korea

Viva Republica (Toss), one of the largest fintech companies in Korea, is expected to become the first decacorn in Korea in 2Q 2022 with valuation...

Douglas Kim

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