In today’s briefing:
- Shinsegae Group: $1 Billion Investment in the Warners Bros Discovery (WBD) Acquisition
- Elice Group IPO Bookbuilding Results Analysis
- KMF IPO Preview
Shinsegae Group: $1 Billion Investment in the Warners Bros Discovery (WBD) Acquisition
- On 6 October, the Shinsegae Group announced that its property development affiliate, Shinsegae Property, will invest $1 billion (approximately 1.4 trillion won) into the Warners Bros Discovery (WBD) acquisition.
- E Mart Inc (139480 KS) currently owns an 100% stake in Shinsegae Property. E Mart continues to face difficulties on meaningfully improving its retail and e-commerce local businesses in Korea.
- In the near-term (1-2 years), this investment is more likely to have a negative impact on E mart mainly due to additional burdens on its balance sheet.
Elice Group IPO Bookbuilding Results Analysis
- A total of 2,367 institutions participated in the Elice Group IPO survey. The total demand ratio was 388.8 to 1. IPO price was finalized at 90,500 won.
- My base case valuation of Elice Group is a target price of 62,353 won per share which is 31% lower than the IPO price of 90,500 won.
- Given the lack of upside, I have a Negative View of this IPO. Bankers used eight overseas companies as comps for Elice Group. I used four Korean companies as comps.
KMF IPO Preview
- KMF is getting ready to complete its IPO on the KOSDAQ market in November. The indicative IPO price range is 15,000 to 17,800 won per share.
- Since its establishment in 2002, KMF has developed and produced functional food and bio-materials based on fermentation and enzyme technologies.
- Total revenue and net income increased by 259% and 1,018%, respectively from 2023 to 2025. KMF’s operating margins are extremely high at 55.8% in 2025 and 51.9% in 1H 2026.
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