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

Kakao Pay IPO Revised Prospectus Out: Key Revisions & Talking Points

Kakao Pay: Post-Listing Trading Timeline & Valuation De-Rating Factor

Kakao Pay - Slightly Lower Our Base Case Valuation

Kakao Pay - Updated Valuation With Revised IPO Price Range

Kakao Pay - One Third of Revenues in Jeopardy or Reach a Compromise with the Regulators?

The Blockchain Delusion. A (Mostly) Bearish Investment Thesis.

Gravity Works As WeWork Doesn't; Now Plan B

Equity Capital Markets

<p><strong><a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> provided a new timeline of its IPO after the market close today.</strong> The book building for the institutional investors will now start on <strong>20 October.</strong> Previously, this was supposed to start on 29 September. Despite another delay in the IPO schedule, the company has maintained the IPO price range of 60,000 won to 90,000 won. The IPO base deal size ranges from $871 million to $1.3 billion.</p><p>According to the bankers' valuation, the expected market cap of Kakao Pay is expected to range from 8.2 trillion won to 12.2 trillion won. Kakao Pay IPO is expected to start trading on <strong>3 November. </strong></p><div class="content-highlight">
<div>We maintain our base case valuation of EV of 10.1 trillion won, implied market cap of 12.2 trillion won, and target price per share of 89,739 won per share. This is based on an EV/S multiple of 10.6x using our estimated sales of 954 billion won for the company in 2022.</div>
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<div>At the high end of the IPO price range (90,000 won), we see limited upside as compared to our base case valuation. On the other hand, at the low or mid end of the IPO price range (60,000 won to 75,000 won per share), we see a solid upside as compared to our target price. </div>
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Kakao Pay (377300 KS) provided a new timeline of its IPO after the market close today. The book building for the institutional investors will now start on 20 October. Previously, this was supposed to start on 29 September. Despite another delay in the IPO schedule, the company has maintained the IPO price range of 60,000 won to 90,000 won. The IPO base deal size ranges from $871 million to $1.3 billion.According to the bankers' valuation, the expected market cap of Kakao Pay is expected to range from 8.2 trillion won to 12.2 trillion won. Kakao Pay IPO is expected to start trading on 3 November. 
We maintain our base case valuation of EV of 10.1 trillion won, implied market cap of 12.2 trillion won, and target price per share of 89,739 won per share. This is based on an EV/S multiple of 10.6x using our estimated sales of 954 billion won for the company in 2022.

At the high end of the IPO price range (90,000 won), we see limited upside as compared to our base case valuation. On the other hand, at the low or mid end of the IPO price range (60,000 won to 75,000 won per share), we see a solid upside as compared to our target price. 


Kakaopay

Kakao Pay - A New Timeline for Its IPO