Samhyun reported excellent IPO bookbuilding results. Samhyun's IPO price has been determined at 30,000 won per share, which is 20% higher than the high end of the IPO price range.
A total of 2,168 institutional investors participated in this IPO book building. The demand ratio was 649 to 1. Samhyun will start trading on 21 March 2024.
Our base case valuation of Samhyun is implied market cap of 396 billion won or target price of 37,402 won, which is 25% higher than the IPO price.
IPO Book Building Results
Samhyun (SAM KS) reported excellent IPO bookbuilding results. Samhyun's IPO price has been determined at 30,000 won per share, which is 20% higher than the high end of the IPO price range (25,000 won). A total of 2,168 institutional investors participated in this IPO book building. The demand ratio was 649 to 1. Samhyun will start trading on 21 March 2024.
An 87% of the IPO shares applied thought that the company's value is more than 30,000 won per share, which is a bullish sign. A 2% of the IPO applied shares did not provide price levels.
Lock-up periods - An 11% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. The remaining 89% of the IPO shares are not under any lock-up. The lockup ratio is not as bullish as the overall demand ratio.
Company Background
Founded in 1988, Samhyun supplies motion control systems through the development of motors, controllers, and other products. Major customers include Hyundai Motor (005380 KS) and Kia Corp (000270 KS). Samhyun's competitive edge is its '3-in-1' integration technology that integrates the motor, controller, and reducer into one. The company's products are used in key industries including automobile, defense, shipbuilding, robotics, transportation, and UAM (urban mobility) industries. Together with Hyundai Motor Group, Samhyun developed one of the world's first CVVD (Continuously Variable Valve Duration) technology for automobile engines, which improves fuel efficiency by controlling the engine's valve opening time.
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