APAC IPOs & Placements

Zhen Zhou, Toh

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

<div><p><a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener">Krafton Inc (259960 KS)</a> is looking to raise up to US3.8bn in its South Korea IPO. </p></div><div><p>Krafton Inc is a video game developer based in South Korea. The company is known for developing the global hit, PlayerUnknown's Battlegrounds (PUBG), an online multiplayer battle royale game. It is backed by Tencent and has also developed other games such as Tera, Elyon, Golf King: World Tour, Mini Golf King, Bowling King, and Archery King.</p></div><div><p>In this note, we will take a look at lock-up on shareholders and index inclusion.</p></div><div><p>We covered the IPO earlier in:</p></div><div><ul style="list-style-type: disc;"><li>
<a href="https://www.smartkarma.com/insights/krafton-ipo-adapting-and-transforming-well" target="_blank" data-smartkarma-citation="insights:54117" rel="noopener">Krafton IPO - Adapting and Transforming Well</a> </li></ul></div>

Krafton Inc (259960 KS) is looking to raise up to US3.8bn in its South Korea IPO. Krafton Inc is a video game developer based in South Korea. The company is known for developing the global hit, PlayerUnknown's Battlegrounds (PUBG), an online multiplayer battle royale game. It is backed by Tencent and has also developed other games such as Tera, Elyon, Golf King: World Tour, Mini Golf King, Bowling King, and Archery King.In this note, we will take a look at lock-up on shareholders and index inclusion.We covered the IPO earlier in:
Krafton IPO - Adapting and Transforming Well 

Krafton IPO - Lock-Up (Or Lack Thereof on Most Shares) + Index Inclusion

<div><p><a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"></a><a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a> is looking to raise up to US3.8bn in its South Korea IPO. </p></div><div>
<p>Krafton Inc is a video game developer based in South Korea. The company is known for developing the global hit, PlayerUnknown's Battlegrounds (PUBG), an online multiplayer battle royale game. It is backed by Tencent and has also developed other games such as Tera, Elyon, Golf King: World Tour, Mini Golf King, Bowling King, and Archery King.</p>
<p>In this note, we will share our thoughts on assumptions and valuation.</p>
<p>We covered the IPO earlier in:</p>
<ul><li>
<a href="https://www.smartkarma.com/insights/krafton-ipo-adapting-and-transforming-well" target="_blank" data-smartkarma-citation="insights:54117" rel="noopener">Krafton IPO - Adapting and Transforming Well</a> </li></ul>
</div>

 Krafton Inc (259960 KS) is looking to raise up to US3.8bn in its South Korea IPO. 
Krafton Inc is a video game developer based in South Korea. The company is known for developing the global hit, PlayerUnknown's Battlegrounds (PUBG), an online multiplayer battle royale game. It is backed by Tencent and has also developed other games such as Tera, Elyon, Golf King: World Tour, Mini Golf King, Bowling King, and Archery King.
In this note, we will share our thoughts on assumptions and valuation.
We covered the IPO earlier in:

Krafton IPO - Adapting and Transforming Well 


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.

<p>Kakao's two financial affiliates, Kakao Bank and Kakao Pay, are about to go public at the same time next month. As of the listing date, there is an interval of only one week.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"IPO schedule"}'>IPO schedule</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Kakao Bank"}'>Kakao Bank</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Kakao Pay"}'>Kakao Pay</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing"}'><strong>Listing</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44413}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>08. 05</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44420}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>08. 12</strong></td>
</tr>
<tr><td colspan="3" data-sheets-value='{"1":2,"2":"Source: DART &amp; KRX"}'>Source: DART &amp; KRX</td></tr>
</tbody>
</table><p><strong>This poses a dilemma for local institutional investors. This is because if institutions hold both at their originally allocated weight, risk exposure to a specific sector (financial industry) and a specific corporate group (Kakao Group) will suddenly increase.</strong></p><p>In fact, concerns are being raised that the business scope of Kakao Bank and Kakao Pay may overlap too much. Although their current main business is different, they are aiming for almost the same business direction to expand into a comprehensive financial platform through a medium called Kakao Talk.</p><div class="content-highlight"><ul>
<li>The symbolic point of conflict in the evolution of business areas is the MyData Project that the government is promoting. MyData is a business that provides customized financial services by collecting personal credit information scattered across banks, insurance companies, and credit card companies.</li>
<li>Kakao Bank has decided to launch its own MyData business and is preparing to apply for a license for this. Kakao Pay has already obtained a preliminary business license for MyData.</li>
</ul></div><p><strong>As such, this overlapping business area in the not-too-distant future worsens the severity of risk exposure to the same sector/corporate group.</strong></p>

Kakao's two financial affiliates, Kakao Bank and Kakao Pay, are about to go public at the same time next month. As of the listing date, there is an interval of only one week.







IPO schedule
Kakao Bank
Kakao Pay


Listing
08. 05
08. 12

Source: DART &amp; KRX

This poses a dilemma for local institutional investors. This is because if institutions hold both at their originally allocated weight, risk exposure to a specific sector (financial industry) and a specific corporate group (Kakao Group) will suddenly increase.In fact, concerns are being raised that the business scope of Kakao Bank and Kakao Pay may overlap too much. Although their current main business is different, they are aiming for almost the same business direction to expand into a comprehensive financial platform through a medium called Kakao Talk.
The symbolic point of conflict in the evolution of business areas is the MyData Project that the government is promoting. MyData is a business that provides customized financial services by collecting personal credit information scattered across banks, insurance companies, and credit card companies.
Kakao Bank has decided to launch its own MyData business and is preparing to apply for a license for this. Kakao Pay has already obtained a preliminary business license for MyData.
As such, this overlapping business area in the not-too-distant future worsens the severity of risk exposure to the same sector/corporate group.

Kakao Bank & Kakao Pay Listings in Close Proximity: Institutional Cannibalization Risk

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p>In this insight, we provide an updated valuation of the Krafton IPO, taking into account the changes the comps' prices and adjusting for lower IPO offering.  We also discuss other recent major events which could impact the Krafton IPO. </p><div class="content-highlight"><p>We slightly lowered our base case valuation of Krafton by 2% to an implied market cap of 23 trillion won or 455,942 won per share, based on 21.3x EV/EBITDA (2022E). Our base case is just 2% above the mid-point of the IPO price range 400,000 won to 498,000 won. Given the lack of upside, we continue to maintain our stance of AVOID for this IPO. </p></div>

In this insight, we provide an updated valuation of the Krafton IPO, taking into account the changes the comps' prices and adjusting for lower IPO offering.  We also discuss other recent major events which could impact the Krafton IPO. We slightly lowered our base case valuation of Krafton by 2% to an implied market cap of 23 trillion won or 455,942 won per share, based on 21.3x EV/EBITDA (2022E). Our base case is just 2% above the mid-point of the IPO price range 400,000 won to 498,000 won. Given the lack of upside, we continue to maintain our stance of AVOID for this IPO. 

An Updated Valuation of the Krafton IPO & Major Recent Events Impacting the Company

<p>The listing dates for Korea's four mega IPO stocks, which are currently undergoing the listing process, have been confirmed except for Krafton.</p><ul>
<li><strong>SD Biosensor is due to go public this Friday, July 16th.</strong></li>
<li><strong>In addition, Kakao Bank has confirmed the listing date on August 5, and Kakao Pay is scheduled to be listed on August 12, a week later.</strong></li>
<li><strong>Krafton is highly likely to be listed between the listing dates of Kakao Bank and Kakao Pay, given the status of its listing process so far.</strong></li>
</ul><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"IPO schedule"}'>IPO schedule</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"SD Biosensor"}'>SD Biosensor</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Kakao Bank"}'>Kakao Bank</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Krafton"}'>Krafton</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Kakao Pay"}'>Kakao Pay</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"137310"}' data-sheets-formula='="137310"'>137310</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"323410"}' data-sheets-formula='="323410"'>323410</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"259960"}' data-sheets-formula='="259960"'>259960</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"377300"}' data-sheets-formula='="377300"'>377300</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Retail subscription"}'><strong>Retail subscription</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44385}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>07. 08</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44403}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>07. 26</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44410}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>08. 02</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44412}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>08. 04</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44390}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'>07. 13</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44406}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'>07. 29</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44413}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'>08. 05</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44417}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'>08. 09</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing"}'><strong>Listing</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44393}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>07. 16</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44413}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>08. 05</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"TBA"}'><strong>TBA</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44420}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>08. 12</strong></td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART &amp; KRX"}'>Source: DART &amp; KRX</td></tr>
</tbody>
</table>

The listing dates for Korea's four mega IPO stocks, which are currently undergoing the listing process, have been confirmed except for Krafton.
SD Biosensor is due to go public this Friday, July 16th.
In addition, Kakao Bank has confirmed the listing date on August 5, and Kakao Pay is scheduled to be listed on August 12, a week later.
Krafton is highly likely to be listed between the listing dates of Kakao Bank and Kakao Pay, given the status of its listing process so far.










IPO schedule
SD Biosensor
Kakao Bank
Krafton
Kakao Pay


Ticker
137310
323410
259960
377300


Retail subscription
07. 08
07. 26
08. 02
08. 04


Payment
07. 13
07. 29
08. 05
08. 09


Listing
07. 16
08. 05
TBA
08. 12

Source: DART &amp; KRX



Korea's Ongoing IPOs Subscription & Listing Schedule: Krafton Listing Date May Be Delayed

South Korea

Krafton, Inc. operates as a game development company. The Company develops console games, mobile games, computer games, and other related products. Krafton markets its products throughout South Korea.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Krafton (259960 KS)

Krafton IPO - Lock-Up (Or Lack Thereof on Most Shares) + Index Inclusion

Krafton Inc (259960 KS) is looking to raise up to US3.8bn in its South Korea IPO. In this note, we will take a look at lock-up on shareholders and...

Zhen Zhou, Toh

Krafton IPO - Assumptions and Valuation

Krafton Inc (259960 KS) is looking to raise up to US3.8bn in its South Korea IPO. In this note, we will share our thoughts on assumptions and...

Zhen Zhou, Toh

Kakao Bank & Kakao Pay Listings in Close Proximity: Institutional Cannibalization Risk

This post discusses local institutional investors' dilemma resulting from the fact that Kakao Bank and Kakao Pay's listing dates are close to each...

Sanghyun Park

An Updated Valuation of the Krafton IPO & Major Recent Events Impacting the Company

We lowered our base case valuation of Krafton by 2% to 455,942 won per share, based on 21.3x EV/EBITDA (2022E). Given the lack of upside, we...

Douglas Kim

Korea's Ongoing IPOs Subscription & Listing Schedule: Krafton Listing Date May Be Delayed

This post has Korea's ongoing mega IPOs' subscription and listing schedule, except for Krafton, and explains why Krafton's listing date may be...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)