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

Simone Accessories Collection IPO Valuation Analysis

Simone IPO - Peer Comparison and an Uncompelling Valuation

Equity Capital Markets

Simone Acc Collection  / Equity Capital Markets

<p><a href="https://www.kedglobal.com/newsView/ked202102260006" target="_blank" rel="noopener">Simone Acc. Collection</a> is one of the most well known luxury handbag makers in Korea. Established in 1987, Simone is one of the first ODM players in Asia to have tapped into the luxury handbag manufacturing market. In 1987, the founder and chairman Park Eun-Kwan approached Donna Karan New York (DKNY) to win supply rights.</p><p>The company manufactures and sells luxury handbags and small leather goods (SLG)  mainly on ODM/OEM basis. The company has manufacturing operations in Vietnam, Cambodia, and Indonesia, trying to capitalize on lower labor costs and more attractive tariff rates.</p><p><strong>Simone Acc Collection is getting ready to complete its IPO in Korea in October. </strong>The IPO price range is from 39,200 won to 47,900 won. The IPO base deal size is from US$283 million to US$346 million.</p><ul>
<li>According to the bankers' valuation, the expected market cap is from 1.3 trillion won to 1.6 trillion won.</li>
<li>The book building for the institutional investors starts on 24 September. The lead bankers for this deal include Samsung Securities and Mirae Asset Securities. </li>
<li>This is the second attempt for Simone to complete its IPO. The company previously tried to complete its IPO in 2018 but it failed due to weak business performance. </li>
</ul><p><strong>Major shareholders</strong> - Chairman Park Eun-Kwan is the controlling shareholder with a 37.2% stake in the company. His wife Oh In-Shil has a 24% stake in the company. Other insiders and related parties own 8.8%. Blackstone has a 30% stake in the company. </p><table class="table table-striped">
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<tbody>
<tr><td colspan="2"><div>Deal Specifics of Simone Acc Collection Co IPO</div></td></tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 270pt;">Samsung Securities, Mirae Asset Securities, Korea Investment &amp; Securities</td>
</tr>
<tr>
<td>Expected IPO price per share: </td>
<td style="width: 270pt;">39,200 won (low)/47,900 won (high)</td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 270pt;">8.37m shares (new shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 270pt;">US$283 mn (low);  US$346mn (high)</td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 270pt;">33.5m shares</td>
</tr>
<tr>
<td>Expected market cap after IPO:</td>
<td style="width: 270pt;">1,313 billion won (low)/1,605 billion won (high)</td>
</tr>
<tr>
<td>Book open: </td>
<td style="text-align: left; width: 270pt;">24-Sep-21</td>
</tr>
<tr>
<td>Book closed:</td>
<td style="text-align: left; width: 270pt;">27-Sep-21</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 270pt;">TBC</td>
</tr>
<tr>
<td>Source: Company data</td>
<td></td>
</tr>
</tbody>
</table>

Simone Acc. Collection is one of the most well known luxury handbag makers in Korea. Established in 1987, Simone is one of the first ODM players in Asia to have tapped into the luxury handbag manufacturing market. In 1987, the founder and chairman Park Eun-Kwan approached Donna Karan New York (DKNY) to win supply rights.The company manufactures and sells luxury handbags and small leather goods (SLG)  mainly on ODM/OEM basis. The company has manufacturing operations in Vietnam, Cambodia, and Indonesia, trying to capitalize on lower labor costs and more attractive tariff rates.Simone Acc Collection is getting ready to complete its IPO in Korea in October. The IPO price range is from 39,200 won to 47,900 won. The IPO base deal size is from US$283 million to US$346 million.
According to the bankers' valuation, the expected market cap is from 1.3 trillion won to 1.6 trillion won.
The book building for the institutional investors starts on 24 September. The lead bankers for this deal include Samsung Securities and Mirae Asset Securities. 
This is the second attempt for Simone to complete its IPO. The company previously tried to complete its IPO in 2018 but it failed due to weak business performance. 
Major shareholders - Chairman Park Eun-Kwan is the controlling shareholder with a 37.2% stake in the company. His wife Oh In-Shil has a 24% stake in the company. Other insiders and related parties own 8.8%. Blackstone has a 30% stake in the company. 





Deal Specifics of Simone Acc Collection Co IPO

Lead underwriters of the IPO: 
Samsung Securities, Mirae Asset Securities, Korea Investment &amp; Securities


Expected IPO price per share: 
39,200 won (low)/47,900 won (high)


Number of Shares for IPO:
8.37m shares (new shares)


IPO base deal size: 
US$283 mn (low);  US$346mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
33.5m shares


Expected market cap after IPO:
1,313 billion won (low)/1,605 billion won (high)


Book open: 
24-Sep-21


Book closed:
27-Sep-21


Listing date: 
TBC


Source: Company data





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