Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Korea IPO Lockup Allocation Disclosure Rule Change: Starting with SD Biosensor & Krafton

FSS Requested Krafton to Revise the Offering Price: Background & Impact

Krafton and Mirae Asset Are Playing a Fairly Risky Game

Krafton's Strategic Intention Behind High Offering Price & FSS Correction Request Possibility

Krafton IPO: Offering Detail, Valuation Issue, & Index Fast Entry

Several Controversial Issues About Krafton IPO Valuation

Initial Thoughts on the Krafton IPO Valuation

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Equity Capital Markets

<div><p>The Financial Supervisory Service (FSS) reviews an IPO prospectus for 15 days. Only after approval by The FSS will Krafton be able to market to investors.</p></div><div>
<p>The Financial Supervisory Service may request amendments to an IPO prospectus if it determines that any part of the disclosure may interfere with the good judgment of investors or may cause serious misunderstanding.</p>
<p>Similar to the case of SD Biosensor recently, in Krafton's case, market dissatisfaction with the overly high price is intensifying. So, the FSS may ask Krafton to revise its offering price.</p>
<p>At the same time, another issue is emerging. Again, this could lead to the FSS requesting amendments to the IPO prospectus.</p>
<p><strong>The issue is that Krafton has so far denied the business structure in which Tencent provides PUBG (PlayerUnknown's Battlegrounds) in the name of Peacekeeper Elite (和平精英) in the Chinese market and Krafton receives a portion of its sales as royalties.</strong></p>
<p><strong>However, Krafton recognized for the first time a royalty income relationship with Tencent through this IPO prospectus. In this regard, the FSS is examining whether the IPO prospectus has sufficiently explained the business risks that such a business relationship would bring and, furthermore, whether such a change of word has any legal problems.</strong></p>
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The Financial Supervisory Service (FSS) reviews an IPO prospectus for 15 days. Only after approval by The FSS will Krafton be able to market to investors.
The Financial Supervisory Service may request amendments to an IPO prospectus if it determines that any part of the disclosure may interfere with the good judgment of investors or may cause serious misunderstanding.
Similar to the case of SD Biosensor recently, in Krafton's case, market dissatisfaction with the overly high price is intensifying. So, the FSS may ask Krafton to revise its offering price.
At the same time, another issue is emerging. Again, this could lead to the FSS requesting amendments to the IPO prospectus.
The issue is that Krafton has so far denied the business structure in which Tencent provides PUBG (PlayerUnknown's Battlegrounds) in the name of Peacekeeper Elite (和平精英) in the Chinese market and Krafton receives a portion of its sales as royalties.
However, Krafton recognized for the first time a royalty income relationship with Tencent through this IPO prospectus. In this regard, the FSS is examining whether the IPO prospectus has sufficiently explained the business risks that such a business relationship would bring and, furthermore, whether such a change of word has any legal problems.


Krafton's Biggest Lie About Tencent Relationship & Regulation Risk in China