In today’s briefing:
- LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won
- LS Marine Solution’s Rights Deal Is Serving up a Pretty Rare Arbitrage Hunting Ground
- Dowoo Insys IPO Valuation Analysis
- Coupang: The Taiwan Market Expansion Can Help Create Significant Long-Term Value!
LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won
- After the market close on 26 May, LS Marine Solution (060370 KS) announced that it plans to conduct a capital raise worth 278.3 billion won.
- LS Marine Solution plans to issue 19.57 million new shares in this capital raise, which represents 60% of its outstanding shares.
- Despite the company’s strong sales and profit growth, LS Marine Solution’s valuation multiples may be a bit too aggressive, especially with the major rights offering that will dilute existing shareholders.
LS Marine Solution’s Rights Deal Is Serving up a Pretty Rare Arbitrage Hunting Ground
- This raise stands out with a near-60% issuance ratio—fat rights per share make pre-positioning before ex-date a compelling trade with solid pickup potential.
- LS Cable holds 66.75% and has been steadily upping its stake—likely all-in on this raise, which adds serious anchor support and puts a strong floor under the rights.
- Skip chasing rights—this setup favors buying shares pre–ex-rights, where the embedded rights value likely beats the ex-day drop, making it a clean trade.
Dowoo Insys IPO Valuation Analysis
- Our base case valuation of Dowoo Insys is target price of 40,667 won per share, which is 27% higher than the high end of the IPO price range (32,000 won).
- We used an EV/EBITDA multiple of 14.9x to value the company, which is 10% premium to the comps’ valuation multiples in 2024.
- The decline in operating margin remains one of the biggest risk factors on the company. Its major customers such as Samsung Display are putting increasing pressure to reduce its prices.
Coupang: The Taiwan Market Expansion Can Help Create Significant Long-Term Value!
- Coupang’s financial performance in the first quarter of 2025 illustrates both positive advancements and ongoing challenges.
- Consolidated revenue increased by 11% year-over-year, or 21% on a constant currency basis.
- This growth reflects strong demand and expansion in key segments, supported by an extensive selection of products and enhancements in their delivery service.
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