In today’s briefing:
- Douzone Bizon Situation: TOB Setup Looks Weak; Risks Remain, but Still a Tactical Angle in Play
- CMTX IPO Book Building Results Analysis
- EQT Partners Acquires a Controlling Stake in Douzone Bizon
- Hugel Inc (145020 KS): Disappointing Domestic Sales Dragged 3Q Performance; Export Remains Strong
Douzone Bizon Situation: TOB Setup Looks Weak; Risks Remain, but Still a Tactical Angle in Play
- EQT appears to be focused on IRR, prioritizing integration over equity; TOB looks low-return, rights issue chatter spooked markets today, so TOB-driven positioning isn’t realistic near term.
- EQT also faces risks: FSS cap raise approval and a relatively light 34.85% stake limiting exit flexibility. Still, there’s a tactical angle in play.
- EQT skipping TOB, but stealthy on-screen buys could spark a flow bounce; local market still eyes short-term setup trade on gradual stake-building.
CMTX IPO Book Building Results Analysis
- CMTX finalized its IPO price at 60,500, the high end of the IPO price range. The book building process saw participation from 2,423 institutions. Demand ratio was 756.19 to 1.
- Our base case valuation of CMTX is implied market cap of 1.0 trillion won or 106,847 won per share (65% higher than the IPO price).
- Given the excellent upside, we have a Positive View of this IPO. The 71.8% shares that are under lock-up periods is high and this suggests a very bullish sign.
EQT Partners Acquires a Controlling Stake in Douzone Bizon
- On 7 November, it was announced that EQT Partners is acquiring a controlling stake (34.85%) in Douzone Bizon (012510 KS) for about 1.3 trillion won (US$900 million).
- The acquisition price is 120,000 won per share (44.9% higher than the closing price on Friday).
- There was no other announcement regarding tender offer of the remaining minority shares and some investors are likely to have bailed out after this disappointment.
Hugel Inc (145020 KS): Disappointing Domestic Sales Dragged 3Q Performance; Export Remains Strong
- Hugel Inc (145020 KS) has reported muted 3Q25 result, with flat revenue and profits decreasing compared to year-ago period. Domestic revenue decreased 19% YoY and dragged overall 3Q25 result.
- However, strong export revenue of botulinum toxin and dermal fillers is the key bright spot in 3Q25 result. During 3Q25, international revenue grew 12% YoY.
- Since declaring 2Q result, Hugel shares plunged ~40%. More downside cannot be ruled out. 4Q result showing recovering domestic business and improved profitability under new leadership should be near-term catalyst.
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