In today’s briefing:
- On A Charge: Hanon Systems & Renewed Interest In Hahn/Hankook’s Stake
- Samhyun IPO Bookbuilding Results Analysis
On A Charge: Hanon Systems & Renewed Interest In Hahn/Hankook’s Stake
- Back in 2004, Hahn & Co and Hankook Tire (161390 KS) acquired a 70% stake in Hanon Systems (018880 KS) from Visteon (VC US), an automotive electronics supplier, for ₩3.8tn.
- Three years ago, Hahn/Hankook explored the sale of this 70% stake, which was expected to fetch ~₩8tn (US$7bn). Reportedly, Carlyle, TPG, Bain and auto supplier Mahle submitted preliminary bids.
- That 70% stake is now worth ₩2.3tn. And reportedly, Carlyle has returned to the trough.
Samhyun IPO Bookbuilding Results Analysis
- Samhyun reported excellent IPO bookbuilding results. Samhyun’s IPO price has been determined at 30,000 won per share, which is 20% higher than the high end of the IPO price range.
- A total of 2,168 institutional investors participated in this IPO book building. The demand ratio was 649 to 1. Samhyun will start trading on 21 March 2024.
- Our base case valuation of Samhyun is implied market cap of 396 billion won or target price of 37,402 won, which is 25% higher than the IPO price.
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