Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Equity Capital Markets

<h2>Offering size</h2><p><a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (137310 KS)</a>, Korea's leading pure-play IVD (In Vitro Diagnostics) company, filed an IPO book yesterday for a KOSPI listing. The company offers 15.55M shares, representing <strong>16.67% of the total shares</strong>, of which <strong>55~75%</strong> will be institutional allocation.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Overview"}'>Offering size</td></tr>
<tr>
<td>Ticker</td>
<td style="text-align: right;">137310</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Bourse"}'>Bourse</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>KOSPI</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Pre-IPO SO"}'><strong>Pre-IPO SO</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":93317753}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>93,317,753</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering"}'><strong>Offering</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15552900}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>15,552,900</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}'><strong>- % of SO</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.16666603620427936}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>16.67%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Institutional allotment"}'>- Institutional allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.55}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>55.00~75.00%</td>
</tr>
<tr><td colspan="2">Source: </td></tr>
</tbody>
</table><h2>Split ratio</h2><p>This is a split offering at a ratio of <strong>66.67% (primary)</strong> and <strong>33.33% (secondary)</strong>. The 33.33% secondary belongs to the major shareholder, Cho Young-sik. As a result, this offering will see a capital increase rate of 11.11%. This IPO is free of any additional option: cornerstone, clawback, or greenshoe.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Split"}'>Split</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Primary %"}'><strong>Primary %</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6666666666666666}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>66.67%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Secondary %"}'><strong>Secondary %</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3333333333333333}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>33.33%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Post-IPO SO"}'>Post-IPO shares outstanding</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":103686353}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>103,686,353 shares</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase rate"}'><strong>Capital increase rate</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11111069080285292}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>11.11%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Dilution"}'>Dilution</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09999965955018207}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>10.00%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Schedule</h2><p><strong>The book opens on June 10</strong> for both local and overseas and runs until June 11. <strong>The allotment will be on June 14</strong> with a final offering price. The subscription follows on June 15.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Book open"}'><strong>Book opens</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44357}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 6. 10</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Allotment"}'><strong>Allotment</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44361}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 6. 14</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Subscription"}'><strong>Subscription</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44362}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 6. 15</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":44365}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 6. 18</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Pricing</h2><p>The IPO book features three valuation peers: Seegene, Thermo Fisher Scientific, and Perkin Elmer. Their average FY2020 PER delivers 19.09x, implying <strong>a market cap of ₩11,755.0B</strong> for SD Biosensor. </p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="150">
<col width="150">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Valuation peers"}'>Valuation peers</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"SD Biosensor"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=Terms!R[1]C[0]">SD Biosensor</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Seegene Inc"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Seegene Inc</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Thermo Fisher Scientific Inc."}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Thermo Fisher Scientific Inc.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"PerkinElmer, Inc."}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>PerkinElmer, Inc.</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Earnings (in million): FY2020"}'>Earnings - FY2020</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":615636}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0","3":1}'><strong>₩615.6B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":503147}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0","3":1}'>₩503.1B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6375}' data-sheets-numberformat='{"1":2,"2":"$#,##0.0","3":1}'>$6,375.0M</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":728}' data-sheets-numberformat='{"1":2,"2":"$#,##0.0","3":1}'>$728.0M</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shares (incl. stock options)"}'>Total shares (incl. stock options)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":104892353}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>104,892,353</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":52225994}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>52,225,994</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":393793362}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>393,793,362</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":112061794}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>112,061,794</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"EPS"}'>EPS</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5869.217177347523}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula="=R[-2]C[0]*1000000/R[-1]C[0]"><strong>₩5,869</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9634.04}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩9,634</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16.19}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$16.19</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6.5}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$6.50</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Reference share price"}'>Reference share price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":112067}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'><strong>₩112,067</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":79000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩79,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":456.92}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$456.92</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":135.48}' data-sheets-numberformat='{"1":4,"2":"[$$]#,##0.00","3":1}'>$135.48</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"PER"}'>PER</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":19.09}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}' data-sheets-formula="=R[1]C[1]"><strong>19.09x</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"8.20x"}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}'>8.20x</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"28.22x"}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}'>28.22x</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"20.86x"}' data-sheets-numberformat='{"1":2,"2":"0.00x","3":1}'>20.86x</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Average PER"}'>Average PER</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00"}'><strong>-</strong></td>
<td colspan="3" style="text-align: center;" data-sheets-value='{"1":3,"3":19.09}' data-sheets-numberformat='{"1":2,"2":"#,##0.00"}'><strong>19.09x</strong></td>
</tr>
<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p><strong>A 24.15~41.11% discount</strong> sets up an indicative price band of <strong>₩66,000~85,000</strong>, implying a market cap of ₩6.9~8.9T.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Pricing (₩B)"}'>Indicative price band</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Low"}'>Low</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"High"}'>High</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Price (₩)"}'><strong>Price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":66000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩66,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":85000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩85,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Base deal size"}'>Base deal size</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1026.4914}' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000">₩1,026.5B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1321.9965}' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000">₩1,322.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Institutional allotment"}'>- Institutional allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":564.5702700000002}' data-sheets-formula="=R[-1]C[0]*Terms!R12C2">₩564.6B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":727.098075}' data-sheets-formula="=R[-1]C[0]*Terms!R12C2">₩727.1B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'><strong>Implied market cap</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6922.895298}' data-sheets-formula="=R[-3]C[0]*R[-11]C[0]/1000000000"><strong>₩6,922.9B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8915.850005}' data-sheets-formula="=R[-3]C[0]*R[-11]C[-1]/1000000000"><strong>₩8,915.9B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Discount"}'><strong>- Discount</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.41106659409103485}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R7C2-R[-4]C[0])/R7C2"><strong>41.11%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.24152515905663577}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R7C2-R[-4]C[0])/R7C2"><strong>24.15%</strong></td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Offering sizeSD Biosensor (137310 KS), Korea's leading pure-play IVD (In Vitro Diagnostics) company, filed an IPO book yesterday for a KOSPI listing. The company offers 15.55M shares, representing 16.67% of the total shares, of which 55~75% will be institutional allocation.





Offering size

Ticker
137310


Bourse
KOSPI


Pre-IPO SO
93,317,753


Offering
15,552,900


- % of SO
16.67%


- Institutional allotment
55.00~75.00%

Source: 

Split ratioThis is a split offering at a ratio of 66.67% (primary) and 33.33% (secondary). The 33.33% secondary belongs to the major shareholder, Cho Young-sik. As a result, this offering will see a capital increase rate of 11.11%. This IPO is free of any additional option: cornerstone, clawback, or greenshoe.





Split

Primary %
66.67%


Secondary %
33.33%


Post-IPO shares outstanding
103,686,353 shares


Capital increase rate
11.11%


Dilution
10.00%

Source: DART

ScheduleThe book opens on June 10 for both local and overseas and runs until June 11. The allotment will be on June 14 with a final offering price. The subscription follows on June 15.





Timetable

Book opens
2021. 6. 10


Allotment
2021. 6. 14


Subscription
2021. 6. 15


Payment
2021. 6. 18

Source: DART

PricingThe IPO book features three valuation peers: Seegene, Thermo Fisher Scientific, and Perkin Elmer. Their average FY2020 PER delivers 19.09x, implying a market cap of ₩11,755.0B for SD Biosensor. 









Valuation peers
SD Biosensor
Seegene Inc
Thermo Fisher Scientific Inc.
PerkinElmer, Inc.


Earnings - FY2020
₩615.6B
₩503.1B
$6,375.0M
$728.0M


Total shares (incl. stock options)
104,892,353
52,225,994
393,793,362
112,061,794


EPS
₩5,869
₩9,634
$16.19
$6.50


Reference share price
₩112,067
₩79,000
$456.92
$135.48


PER
19.09x
8.20x
28.22x
20.86x


Average PER
-
19.09x

Source: DART

A 24.15~41.11% discount sets up an indicative price band of ₩66,000~85,000, implying a market cap of ₩6.9~8.9T.







Indicative price band
Low
High


Price
₩66,000
₩85,000


Base deal size
₩1,026.5B
₩1,322.0B


- Institutional allotment
₩564.6B
₩727.1B


Implied market cap
₩6,922.9B
₩8,915.9B


- Discount
41.11%
24.15%

Source: DART



SD Biosensor IPO: Offering Detail, Valuation Issue, & Index Fast Entry Possibilities

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul>
<li>In this insight, I discuss how the song <em>Rich Men North of Richmond</em>, return of mask mandates, and new COVID variant are all intertwined. </li>
<li>
<em>"Rich Men North of Richmond"</em> is a song about the excessive control of the government and the pressures of life. </li>
<li>I discuss the intricacies of how these three stories are intertwined and how the certain sectors of the stock market could be impacted from the potential changes in government policies.</li>
</ul>


In this insight, I discuss how the song Rich Men North of Richmond, return of mask mandates, and new COVID variant are all intertwined. 

"Rich Men North of Richmond" is a song about the excessive control of the government and the pressures of life. 
I discuss the intricacies of how these three stories are intertwined and how the certain sectors of the stock market could be impacted from the potential changes in government policies.


Rich Men North of Richmond, Return of Mask Mandates, and New COVID Variants

South Korea

SD Biosensor, INC. operates medical device manufacturing businesses. The Company produces electric medical instruments and other products. SD Biosensor conducts businesses across worldwide.

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

SD Biosensor IPO: Offering Detail, Valuation Issue, & Index Fast Entry Possibilities

This post details the initial public offering of SD Biosensor, Korea's largest pure-play COVID text kit company. It then discusses valuation issues...

Sanghyun Park

Rich Men North of Richmond, Return of Mask Mandates, and New COVID Variants

In this insight, I discuss how the song Rich Men North of Richmond, return of mask mandates, and new COVID variant are all intertwined.

Douglas Kim