In today’s briefing:
- WCP: First Day IPO Trading Strategy
- Model Solution IPO Valuation Analysis
WCP: First Day IPO Trading Strategy
- The IPO book building for WCP starts on 14 September. We have updated our earnings estimates following the company’s 2Q 2022 results.
- Our base case target price of WCP is 78,317 won per share, which is 2% lower than the low end of the IPO price range of 80,000 won.
- To derive our target price, we used 22.4x EV/EBITDA in 2023, which is the average multiple of its peers in 2023.
Model Solution IPO Valuation Analysis
- Our base case valuation of Model Solution is implied market cap of 156 billion won and target price of 24,417 won.
- The IPO valuation range is from 24,000 won to 27,000 won and our target price would be close to the low end of the IPO price range.
- Given the low upside relative to the IPO price range, we have a Negative view of this IPO.
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