Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

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Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/enchem-co-ltd" target="_blank" data-smartkarma-citation="entities:34297:1" rel="noopener">Enchem (348370 KS)</a> reported strong book building results and the IPO price has been finalized at 42,000 won per share, which was 20% higher than the high end of the IPO price range of 35,000 won. The IPO of Enchem will start trading on 1 November.</p><p>Enchem's<a href="http://www.ipo38.co.kr/ipo/index.htm?o=v&amp;key=6&amp;no=1714&amp;l=&amp;page=1" target="_blank" rel="noopener"> gray market price</a> is trading at around 71,000 won per share, which is 69% higher than the IPO price of 42,000 won. There were 1,721 institutions that participated in this IPO survey and the demand ratio for the IPO shares were 1,647 to 1.</p><p>The company had some excellent book building data points. For example, a 73.9% of the institutional investors thought that the intrinsic value of Enchem should be more than 42,000 won. In addition, a very high ratio (64.4%) of the institutional investors' subscribed shares are under various lock-up periods.</p><div class="content-highlight"><p>Our base case valuation of Enchem remains implied market cap of 904 billion won or 55,777 won per share, which is 33% higher than the IPO price range of 42,000 won per share. Given the strong upside, we have a POSITIVE view of the Enchem IPO. Our base case valuation is based on a P/E of 45.7x our estimated net profit of 20 billion won in 2022.</p></div>

Enchem (348370 KS) reported strong book building results and the IPO price has been finalized at 42,000 won per share, which was 20% higher than the high end of the IPO price range of 35,000 won. The IPO of Enchem will start trading on 1 November.Enchem's gray market price is trading at around 71,000 won per share, which is 69% higher than the IPO price of 42,000 won. There were 1,721 institutions that participated in this IPO survey and the demand ratio for the IPO shares were 1,647 to 1.The company had some excellent book building data points. For example, a 73.9% of the institutional investors thought that the intrinsic value of Enchem should be more than 42,000 won. In addition, a very high ratio (64.4%) of the institutional investors' subscribed shares are under various lock-up periods.Our base case valuation of Enchem remains implied market cap of 904 billion won or 55,777 won per share, which is 33% higher than the IPO price range of 42,000 won per share. Given the strong upside, we have a POSITIVE view of the Enchem IPO. Our base case valuation is based on a P/E of 45.7x our estimated net profit of 20 billion won in 2022.

エンケムIPO - 素晴らしいブックビルディング結果