Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

SK Biopharmaceuticals   / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a> announced after the market close today that it plans to sell a significant amount of <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a> shares in a block deal (about $1 billion). The block deal price range of SK Biopharm is from 129,800 won to 134,225 won. </p><p><strong>Overall, we believe this deal is likely to be slightly positive on SK Holdings but negative on SK Biopharm. We believe that investors will be able to buy SK Biopharm shares even at lower prices than than the discounted block deal prices. This big block deal is likely to act as an ongoing OVERHANG on SK Biopharm shares in the coming months. </strong></p>

SK Holdings (034730 KS) announced after the market close today that it plans to sell a significant amount of SK Biopharmaceuticals Co Ltd (326030 KS) shares in a block deal (about $1 billion). The block deal price range of SK Biopharm is from 129,800 won to 134,225 won. Overall, we believe this deal is likely to be slightly positive on SK Holdings but negative on SK Biopharm. We believe that investors will be able to buy SK Biopharm shares even at lower prices than than the discounted block deal prices. This big block deal is likely to act as an ongoing OVERHANG on SK Biopharm shares in the coming months. 

SK Biopharm - A Block Deal Worth $1 Billion Sell Down by SK Holdings (A Big Overhang)

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.

<p><a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a> aims to raise US$1bn via selling 11% of <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a>.</p><p>The shares have more than tripled since listing and the IPO lock-up just expired last month.  While the discount appears tempting overall the stock doesn't score well on our framework.</p>

SK Holdings (034730 KS) aims to raise US$1bn via selling 11% of SK Biopharmaceuticals Co Ltd (326030 KS).The shares have more than tripled since listing and the IPO lock-up just expired last month.  While the discount appears tempting overall the stock doesn't score well on our framework.

SK Biopharma Placement - Juicy Discount but the Rest Looks Iffy

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.</p><p>The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.</p><p>All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.</p><div><p><a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> replaces <a href="https://www.smartkarma.com/entities/pearl-abyss-corp" target="_blank" data-smartkarma-citation="entities:24391:1" rel="noopener">Pearl Abyss (263750 KS)</a> in the BBIG Index.</p></div><div><p>In the Secondary Battery index, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd" target="_blank" data-smartkarma-citation="entities:16883:1" rel="noopener">Soulbrain (036830 KS)</a> and <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F Co Ltd (066970 KS)</a> replace <a href="https://www.smartkarma.com/entities/doosan-solus-co-ltd" target="_blank" data-smartkarma-citation="entities:28947:1" rel="noopener">Doosan Solus Co Ltd (336370 KS)</a> and <a href="https://www.smartkarma.com/entities/foosung-co-ltd" target="_blank" data-smartkarma-citation="entities:16811:1" rel="noopener">Foosung Co Ltd (093370 KS)</a>.</p></div><div><p>In the Biotech index, <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> replace <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen Inc (196170 KS)</a> and <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a>.</p></div><div><p>In the Internet index, <a href="https://www.smartkarma.com/entities/ace-technologies-corp" target="_blank" data-smartkarma-citation="entities:7868:1" rel="noopener">Ace Technologies (088800 KS)</a> and <a href="https://www.smartkarma.com/entities/rsupport-co-ltd" target="_blank" data-smartkarma-citation="entities:14783:1" rel="noopener">Rsupport Co Ltd (131370 KS)</a> replace <a href="https://www.smartkarma.com/entities/kg-inicis-co-ltd" target="_blank" data-smartkarma-citation="entities:5234:1" rel="noopener">KG Inicis Co Ltd (035600 KS)</a> and <a href="https://www.smartkarma.com/entities/ubiquoss-inc" target="_blank" data-smartkarma-citation="entities:14341:1" rel="noopener">Ubiquoss Holding (078070 KS)</a>.</p></div><div><p>In the Gaming index, <a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> and <a href="https://www.smartkarma.com/entities/neptune-company" target="_blank" data-smartkarma-citation="entities:28826:1" rel="noopener">Neptune Company (217270 KS)</a> replace <a href="https://www.smartkarma.com/entities/neowiz-games-corp" target="_blank" data-smartkarma-citation="entities:12425:1" rel="noopener">Neowiz Games (095660 KS)</a> and Golfzon (215000 KS).</p></div>

The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.Kakao Games Corp (293490 KS) replaces Pearl Abyss (263750 KS) in the BBIG Index.In the Secondary Battery index, Soulbrain (036830 KS) and L&amp;F Co Ltd (066970 KS) replace Doosan Solus Co Ltd (336370 KS) and Foosung Co Ltd (093370 KS).In the Biotech index, Shinpoong Pharmaceutical (019170 KS) and Green Cross (006280 KS) replace Alteogen Inc (196170 KS) and Hanmi Pharm (128940 KS).In the Internet index, Ace Technologies (088800 KS) and Rsupport Co Ltd (131370 KS) replace KG Inicis Co Ltd (035600 KS) and Ubiquoss Holding (078070 KS).In the Gaming index, Kakao Games Corp (293490 KS) and Neptune Company (217270 KS) replace Neowiz Games (095660 KS) and Golfzon (215000 KS).

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

Event-Driven

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<p>In this insight, we provide an updated sum-of-the parts (SoTP) valuation on <a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a>. There are many moving parts of SK Holdings and it helps to review the main factors that have been impacting its share price. <strong>Our base case valuation of SK Holdings is 448,850 won, which represents a 54% upside from current levels. </strong></p>
<p>We believe that the<strong> 6 MOST IMPORTANT FACTORS</strong> impacting the share price of SK Holdings are currently as follows:</p>
<p>I. A Big Investment ($1.5 Billion) in Plug Power</p>
<p>II. SK IE Technology IPO</p>
<p>III. Sale of SK Lubricants</p>
<p>IV. SK Telecom's Higher Share Price Trend</p>
<p>V. Changing values of SK Siltron, SK E&amp;S and other private companies</p>
<p>VI. Changing values of <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals (326030 KS)</a>, <a href="https://www.smartkarma.com/entities/oci-materials-co-ltd" target="_blank" data-smartkarma-citation="entities:19390:1" rel="noopener">Sk Materials (036490 KS)</a>, <a href="https://www.smartkarma.com/entities/skc-co-ltd" target="_blank" data-smartkarma-citation="entities:3970:1" rel="noopener">SKC Co Ltd (011790 KS)</a>, and other public companies</p>
</div>


In this insight, we provide an updated sum-of-the parts (SoTP) valuation on SK Holdings (034730 KS). There are many moving parts of SK Holdings and it helps to review the main factors that have been impacting its share price. Our base case valuation of SK Holdings is 448,850 won, which represents a 54% upside from current levels. 
We believe that the 6 MOST IMPORTANT FACTORS impacting the share price of SK Holdings are currently as follows:
I. A Big Investment ($1.5 Billion) in Plug Power
II. SK IE Technology IPO
III. Sale of SK Lubricants
IV. SK Telecom's Higher Share Price Trend
V. Changing values of SK Siltron, SK E&amp;S and other private companies
VI. Changing values of SK Biopharmaceuticals (326030 KS), Sk Materials (036490 KS), SKC Co Ltd (011790 KS), and other public companies


SK Holdings: Sum-Of-The Parts Valuation Analysis & Key Catalysts

<div class="content-highlight">
<p>This is our second annual edition of the<em><strong> IPOs Pipeline Worldwide (Top 100 Companies)</strong></em>report. This year has been a superb year for the global IPO market and the pipeline of the global IPOs remains robust in 2021. Among the 100 potential IPOs, they are from 16 countries, including the US, China, India, UK, and Indonesia. We estimate that of these 100 companies, more than half should be able to complete their IPOs in 2021. </p>
<p>Most of the IPOs in this list have more than $1 billion in market cap. We believe that the first half of 2021 is likely to be a more active market than the second half of the year, as the companies and the bankers attempt to capitalize on the continued strong momentum for IPOs globally. </p>
<p><strong>This report is meant to serve as a comprehensive, reference guide to help clients so that they could get a broad view of the major IPOs that could get completed next year on a world-wide basis. </strong></p>
</div>


This is our second annual edition of the IPOs Pipeline Worldwide (Top 100 Companies)report. This year has been a superb year for the global IPO market and the pipeline of the global IPOs remains robust in 2021. Among the 100 potential IPOs, they are from 16 countries, including the US, China, India, UK, and Indonesia. We estimate that of these 100 companies, more than half should be able to complete their IPOs in 2021. 
Most of the IPOs in this list have more than $1 billion in market cap. We believe that the first half of 2021 is likely to be a more active market than the second half of the year, as the companies and the bankers attempt to capitalize on the continued strong momentum for IPOs globally. 
This report is meant to serve as a comprehensive, reference guide to help clients so that they could get a broad view of the major IPOs that could get completed next year on a world-wide basis. 


2021 IPOs Pipeline Worldwide (Top 100 Companies)

South Korea

SK Biopharmaceuticals Co., Ltd. researches and develops new drugs. The Company develops and markets brain disorders treatment drugs, central nervous system disorders treatment drugs, and other products. SK Biopharmaceuticals markets its products worldwide.

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SK Biopharmaceuticals (326030 KS)

SK Biopharm - A Block Deal Worth $1 Billion Sell Down by SK Holdings (A Big Overhang)

SK Holdings plans to sell nearly $1 billion worth of SK Biopharm in a block deal. We believe this will act as a big overhang on SK BIopharm shares.

Douglas Kim

SK Biopharma Placement - Juicy Discount but the Rest Looks Iffy

SK Holdings (034730 KS) aims to raise US$1bn via selling 11% of SK Biopharmaceuticals Co Ltd (326030 KS). The shares have more than tripled since...

Sumeet Singh

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

The KRX has announced changes to the KRX New Deal indices that will be effective after the close of trading on 25 February. Pearl Abyss is...

Brian Freitas

SK Holdings: Sum-Of-The Parts Valuation Analysis & Key Catalysts

In this insight, we provide an updated sum-of-the parts valuation on SK Holdings (034730 KS). Our base case valuation of SK Holdings is 448,850...

Douglas Kim

2021 IPOs Pipeline Worldwide (Top 100 Companies)

This report is meant to serve as a comprehensive, reference guide for the top 100 IPOs worldwide in 2021 to help clients so that they could get a...

Douglas Kim

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