In today’s briefing:
- Seoul Guarantee Insurance IPO Bookbuilding Results Analysis
- Aeon (8267) And Aeon Mall (8905) To Be a Guess The Ratio Trade
Seoul Guarantee Insurance IPO Bookbuilding Results Analysis
- The majority of the investors placed orders at 26,000 won, which is the lower end of the IPO price range (26,000 won to 31,800 won).
- SGIC held internal discussions to set the public offering price at 26,000 won. The final price (which is likely to be 26,000 won) will be revealed on 4 March.
- Our updated base case valuation of SGIC is base case target price of 28,925 won per share. Given the lack of upside, we have a negative view of this deal.
Aeon (8267) And Aeon Mall (8905) To Be a Guess The Ratio Trade
- On 28-Feb-25, the last day of their fiscal year, Aeon Co Ltd (8267 JP) signed a deal to acquire Aeon Delight via Tender Offer and Aeon Mall via scrip exchange.
- For Aeon Mall, that means negotiation on the share exchange ratio over the next 5-6 weeks.
- While I have an opinion on the fair ratio (explained below), I find “Guess The Ratio” trades fraught with bad governance outcomes. The 3-month average is often used.
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