In today’s briefing:
- Index Rebalance & ETF Flow Recap: FTSE JP, HSTECH, HSCEI, PCOMP, GCL Tech, Tencent, Tianqi Lithium
- Viva Republica (Toss): A Fintech Giant in Korea
- Dunamu: Operator of Upbit – The Number One Cryptocurrency Exchange in Korea
- Last Week in Event SPACE: Prosus/Naspers, Link Admin, Bank of Kyoto, Tassel, Toshiba
- Yanolja: Largest Travel App in Korea & Second Largest Property Management SaaS Provider Globally
- ECM Weekly (3rd Jul 2022) – Tianqi, Thai Life, Prosus/Naspers, Tencent, SEA, Soosan, SoCar, Carsales
Index Rebalance & ETF Flow Recap: FTSE JP, HSTECH, HSCEI, PCOMP, GCL Tech, Tencent, Tianqi Lithium
- 30 June was the review cutoff date for the next rebalance of the FTSE All-World/All-Cap Index, HSI INDEX, HSCEI INDEX, HSTECH INDEX, HSCI Index, PCOMP INDEX and the LQ-45 Index.
- Bilibili (9626 HK) replaces Sunac China Holdings (1918 HK) in the Hang Seng China Enterprises Index (HSCEI INDEX) at the close of trading on 8 July.
- There were big inflows to iShares MSCI China (ETF) (MCHI US) during the week while the largest outflow was from the Tracker Fund of Hong Kong Ltd (2800 HK).
Viva Republica (Toss): A Fintech Giant in Korea
- Viva Republica (Toss) is one of the biggest fintech companies in Korea. Toss provides bundled fintech services including payments, banking, securities, and insurance.
- In late June 2022, Viva Republica reported that it received Series G funding with 500 billion won in new investments, valuing the company at 9.0 trillion won or more.
- From 2018 to 2021, the company’s sales increased by 142% CAGR. Operating margin improved significantly from -97.2% in 2019 to -18.6% in 2020 but worsened slightly to -23% in 2021.
Dunamu: Operator of Upbit – The Number One Cryptocurrency Exchange in Korea
- Dunamu operates Upbit which is the largest cryptocurrency exchange in Korea. As of April 2022, Upbit had more than 70% market share in the cryptocurrency trading market in Korea.
- Dunamu’s sales surged by 1996% to 3.7 trillion won in 2021 and operating profit surged from 86.6 billion won in 2020 to 3.3 trillion won in 2021.
- In January 2022, Dunamu was last valued Dunamu at nearly 15 trillion won. However, due to major decline in crypto prices in 2022, Dunamu’s valuation has declined significantly.
Last Week in Event SPACE: Prosus/Naspers, Link Admin, Bank of Kyoto, Tassel, Toshiba
- Prosus (PRX NA) selling its JD.com (9618 HK) shares was expected. The beginning of an open-ended share repurchase programme of Prosus and Naspers (NPN SJ) shares was a welcome surprise.
- Dye & Durham has reduced its Offer price for Link Administration (LNK AU) to $4.30/share, down from $5.50/share. It still may get board support.
- A 40-45% discount is about the narrowest Bank of Kyoto (8369 JP) should get to. For that, there is probably 15-20% upside. But like all holdco trades, trade the range.
Yanolja: Largest Travel App in Korea & Second Largest Property Management SaaS Provider Globally
- Yanolja is the largest travel app in Korea and it is also considered to be the second largest property management software provider in the world after Oracle.
- In July 2021, Softbank Group Corp’s Vision Fund II agreed to invest $1.7 billion in Yanolja, for a 25% stake in the company.
- Yanoljia is a well known app for booking hotels in Korea. The company’s business model has expanded to providing property management software products and services.
ECM Weekly (3rd Jul 2022) – Tianqi, Thai Life, Prosus/Naspers, Tencent, SEA, Soosan, SoCar, Carsales
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- There was a marked pickup in IPO activity with a number of smaller deals, along with two large deals being launched.
- There were no major placements last week. In addition, Prosus single handedly took out two prospective large placements.
Before it’s here, it’s on Smartkarma
