In today’s briefing:
- Seoul Guarantee IPO: Price Cut, Dividend Focus, But Overhang and Weak Earnings May Hurt
- Seoul Guarantee Insurance Corp IPO Preview (Significantly Lower IPO Price Range)
- Smithfield Foods (SFD): IPO Provides a Compelling Discount to Industry Peers
- Beta Bionic, Inc. (BBNX): IPO Is An “Execution Story” And in Growth Mode
- Infinity Natural Resources (INR): Lean & Unlevered IPO Is Next Intriguing Energy Play
- Venture Global Inc. (VG): First Large IPO of the Year Falls Flat Following Massive Cut in Price
Seoul Guarantee IPO: Price Cut, Dividend Focus, But Overhang and Weak Earnings May Hurt
- Seoul Guarantee Insurance is sticking to the same playbook, focusing on boosting dividend appeal, with a better price and the 100% secondary sell-down and KDIC stake dump still in place.
- There’s doubt about market interest, as the performance drop from 2023 to 2024 raises concerns over meeting the 200B KRW minimum dividend promise.
- Seoul Guarantee is Korea’s only pure-play surety insurer, tied to the domestic economy. The IPO lacks a growth plan to reduce this reliance, which would’ve been a key win.
Seoul Guarantee Insurance Corp IPO Preview (Significantly Lower IPO Price Range)
- Seoul Guarantee Insurance Corp (SGIC) is trying for another attempt at an IPO at much lower IPO price range. The IPO price range is from 26,000 won to 31,800 won.
- At the high end of the IPO price range, the IPO offering size is 222 billion won. The IPO price range has been lowered by 34% to 39%.
- Despite the company’s consistent record of generating positive operating profit, its lack of sales growth and declining operating margins in 2024 remain key concerns.
Smithfield Foods (SFD): IPO Provides a Compelling Discount to Industry Peers
- The company is seeking a market cap of $9.1b-$10.7b based on the $23-$27 range.
- A high end pricing for Smithfield values the company at roughly 13.5x this year’s earnings, a sizable discount to comps Hormel Foods (about 21x) and Tyson Foods (26x).
- It is our opinion that the business model is well-rounded, resilient and stable with multiple-organic growth levers.
Beta Bionic, Inc. (BBNX): IPO Is An “Execution Story” And in Growth Mode
- The company has jumped from just eight sales territories in Q2 2023 to 43 sales to end 2024 with more than 15,000 units installed.
- An existing shareholder is on the cover of the prospectus with a concurrent private placement
- Medical Device IPOs have a strong history of success as many are poised for growth
Infinity Natural Resources (INR): Lean & Unlevered IPO Is Next Intriguing Energy Play
- With an unlevered balance sheet, Infinity Natural Resources is set to for both organic and M&A growth post-IPO.
- The company is coming public at a discount to peers Diversified Energy, Gulfport Energy and Magnolia Oil & Gas.
- Early channel check of this offering revealed that the deal is oversubscribed with a high-quality schedule across different regions.
Venture Global Inc. (VG): First Large IPO of the Year Falls Flat Following Massive Cut in Price
- Venture Global priced 70 million shares at $25 and the stock closed 4% below issue in its opening session.
- The underwriting lineup grossly mispriced the IPO from the start and needed to drastically reduce the price range of the transaction.
- The impact to the greater IPO market will be felt on the next large transaction.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
