Daily BriefsSouth Korea

South Korea: SK Shieldus, SSG.Com Corp and more

In today’s briefing:

  • SK Shieldus IPO: The Syndicate’s Revised Methodology
  • SSG.Com & 11st: Need to Drastically Cut Their Valuations to Complete Their IPOs in 2022/2023

SK Shieldus IPO: The Syndicate’s Revised Methodology

By Arun George

  • SK Shieldus (ABFHIZ KS) is a leading South Korean security provider. It is seeking a KRX IPO to raise up to US$0.9 billion. 
  • The primary change in the updated prospectus is the syndicate’s valuation methodology which results in a 10% lower value per share. The IPO price range of KRW31,000-38,800 is unchanged.
  • Sentiment on IPOs remains poor. For investors willing to look at IPOs, our valuation analysis suggests that the IPO price range remains reasonable.  

SSG.Com & 11st: Need to Drastically Cut Their Valuations to Complete Their IPOs in 2022/2023

By Douglas Kim

  • SSG.com is getting ready for an IPO in 2H 2022/1H 2023. Local media have mentioned that SSG.com is targeting a valuation of 10 trillion won for the company.
  • We believe SSG.com would need to cut the valuation by at least 50% (5 trillion won) in order to complete its IPO. 
  • We believe valuation levels of 11st would need to come down significantly in the 2 trillion won to 3 trillion won range in order for an IPO to be completed. 

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