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

Equity Capital Markets

<p>SEMCNS is the market leader in Korea in the ceramic STFs (space transformers) market, which is mainly used in the semiconductor sector. Ceramic STF is a core component of a probe card for evaluating the electrical performance of a wafer. It supports MEMS PIN and transmits an electrical signal to the test inspection equipment through a PCB. Its main competitors are based in Japan. Major customers of the company's products include Samsung Electronics and SK Hynix.</p><p><a href="https://www.smartkarma.com/entities/semcns-co-ltd" target="_blank" data-smartkarma-citation="entities:33009:1" rel="noopener">SEMCNS Co Ltd (252990 KS)</a> is getting ready to complete its IPO in Korea in May. The IPO price range is from 5,000 won to 5,700 won. The IPO base deal size is from $54 million to $61 million. According to the bankers' valuation, the expected market cap after the IPO ranges from 251 billion won to 286 billion won. Of the 12 million shares slated for this IPO, 10 million are new shares and 2 million are old shares. The book building for the institutional investors starts on 3 March 2021.</p><p>The company plans to spend the bulk of its IPO proceeds to double its capacity of STF from 5,000 units per year to 10,000 units per year at its Osong facility. The company has excellent technology and competes in a high barriers to entry industry. </p><table class="table table-striped">
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<td style="width: 292.32px;">Deal Specifics of the SEMCNS IPO:</td>
<td style="width: 344.16px;"> </td>
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<td style="width: 292.32px;">Lead underwriters of the IPO: </td>
<td style="width: 344.16px;">Daishin Secuities</td>
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<td style="width: 292.32px;">Expected IPO price per share: </td>
<td style="width: 344.16px;">5,000 won (low)/5,700 won (high)</td>
</tr>
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<td style="width: 292.32px;">Number of Shares for IPO:</td>
<td style="width: 344.16px;">12m shares (10m new shares; 2m old shares)</td>
</tr>
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<td style="width: 292.32px;">IPO base deal size: </td>
<td style="width: 344.16px;">US$54m (low);  US$61m (high)</td>
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<td style="width: 292.32px;">Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 344.16px;">50.2 m shares</td>
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<td style="width: 292.32px;">Expected market cap after IPO:</td>
<td style="width: 344.16px;">251 billion won (low)/286 billion won (high)</td>
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<td style="width: 292.32px;">Book open: </td>
<td style="text-align: left; width: 344.16px;">03-May-21</td>
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<td style="width: 292.32px;">Book closed:</td>
<td style="text-align: left; width: 344.16px;">04-May-21</td>
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<td style="width: 292.32px;">Listing date: </td>
<td style="text-align: left; width: 344.16px;">TBD</td>
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<td style="width: 292.32px;">Source: Company data</td>
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SEMCNS is the market leader in Korea in the ceramic STFs (space transformers) market, which is mainly used in the semiconductor sector. Ceramic STF is a core component of a probe card for evaluating the electrical performance of a wafer. It supports MEMS PIN and transmits an electrical signal to the test inspection equipment through a PCB. Its main competitors are based in Japan. Major customers of the company's products include Samsung Electronics and SK Hynix.SEMCNS Co Ltd (252990 KS) is getting ready to complete its IPO in Korea in May. The IPO price range is from 5,000 won to 5,700 won. The IPO base deal size is from $54 million to $61 million. According to the bankers' valuation, the expected market cap after the IPO ranges from 251 billion won to 286 billion won. Of the 12 million shares slated for this IPO, 10 million are new shares and 2 million are old shares. The book building for the institutional investors starts on 3 March 2021.The company plans to spend the bulk of its IPO proceeds to double its capacity of STF from 5,000 units per year to 10,000 units per year at its Osong facility. The company has excellent technology and competes in a high barriers to entry industry. 






Deal Specifics of the SEMCNS IPO:
 


Lead underwriters of the IPO: 
Daishin Secuities


Expected IPO price per share: 
5,000 won (low)/5,700 won (high)


Number of Shares for IPO:
12m shares (10m new shares; 2m old shares)


IPO base deal size: 
US$54m (low);  US$61m (high)


Expected common shares outstanding, fully diluted (post-IPO):  
50.2 m shares


Expected market cap after IPO:
251 billion won (low)/286 billion won (high)


Book open: 
03-May-21


Book closed:
04-May-21


Listing date: 
TBD


Source: Company data
 




Samsung Electro Mechanics Co, Ltd. (009150 KS)

SEMCNS Co Ltd

SEMCNS IPO Preview