Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Krafton's Index Play: KOSPI 200, MSCI Std, FTSE AW, FnGuide Top 10, & KRX BBIG

Kakao Pay to Revise Offering Price: Reasons & Schedule Impacts on Kakao Bank & Krafton

Krafton Listing Date Confirmed as August 10th: Rebalancing Trading Timeline

New Games Launches by Krafton & Its Major Competitors in 2021

Equity Capital Markets

<p>In this insight, we provide an updated valuation of the Krafton IPO, taking into account the changes the comps' prices and adjusting for lower IPO offering.  We also discuss other recent major events which could impact the Krafton IPO. </p><div class="content-highlight"><p>We slightly lowered our base case valuation of Krafton by 2% to an implied market cap of 23 trillion won or 455,942 won per share, based on 21.3x EV/EBITDA (2022E). Our base case is just 2% above the mid-point of the IPO price range 400,000 won to 498,000 won. Given the lack of upside, we continue to maintain our stance of AVOID for this IPO. </p></div>

In this insight, we provide an updated valuation of the Krafton IPO, taking into account the changes the comps' prices and adjusting for lower IPO offering.  We also discuss other recent major events which could impact the Krafton IPO. We slightly lowered our base case valuation of Krafton by 2% to an implied market cap of 23 trillion won or 455,942 won per share, based on 21.3x EV/EBITDA (2022E). Our base case is just 2% above the mid-point of the IPO price range 400,000 won to 498,000 won. Given the lack of upside, we continue to maintain our stance of AVOID for this IPO. 

An Updated Valuation of the Krafton IPO & Major Recent Events Impacting the Company