Start subscription to SK Bioscience… Issue if you want to receive even one more week

Reporter Kim Youngwoo [email protected]

This year, the subscription to SK Bioscience, the first’big fish’ to shake the IPO market, begins. It is already raising expectations by setting a new record in demand forecasting for institutions. Experts predicted that SK Bioscience is already prominent in the vaccine field and will be competitive in biopharmaceutical consignment production (CMO) and consignment development production (CDMO).

SK Bioscience, subscribes to public offering by the 10th

According to the financial investment industry on the 9th, SK Biosciences will enter public offerings for individual investors for two days on the same day and on the 10th. The demand forecast for institutional investors has already predicted a box office success. Earlier on the 4th to 5th, the demand forecast for institutional investors recorded a competition rate of 1275:1. It is the highest record in the history of the domestic capital market.

Considering that the size of the public offering is about 1.5 trillion won, the amount spent by the institutions amounted to 1,000 trillion won. A total of 1464 places, including 1,172 domestic and 292 foreign, participated in this demand forecast. 97% of the participating institutions offered a price that exceeded the desired price range, and the proportion of obligatory holding commitments that promised not to sell stock for a certain period was 59.92% of the total quantity.

The offering price was decided at 65,000 won, the top of the desired range. Through this public offering, SK Bioscience will raise KRW 1,491.8 billion. The funds secured by the public offering will focus on facility investment, platform technology acquisition, and research and development (R&D).

How can I get one more week?

In order to receive one more share of the public offering, the most advantageous way is to subscribe all available securities companies with the minimum number of subscriptions. Starting this year, the public offering stock subscription distribution system was changed from proportional method to’equal 50% + proportional 50%’.

Equal allocation is a method of distributing half of the public offering stocks that are shared by individual investors to those who have subscribed. Of course, according to the changed public offering stock distribution system, if there is a large subscription margin, additional allocations can be received in a proportional manner.

Since SK Bioscience’s public offering price is determined to be 65,000 won, which is the highest, 325,000 won should be put as a margin for at least 10 weeks subscription. If the margin is small, it means that it is more advantageous to subscribe to multiple accounts in a minimum unit rather than concentrating on one brokerage company. Even if the highest competition rate comes out, you can get at least 1 week if you subscribe, so if you submit subscriptions from a total of 6 locations, including the subscription organizer and the acquisition team, you can secure at least 6 weeks.

If you haven’t secured all the accounts, it is more advantageous to do it in a brokerage company that has the largest amount of allocation. This is because the higher the competition rate, the greater the difference in the number of shares that can be received with equal distribution.

The representative organizer of SK Bioscience’s IPO was NH Investment & Securities, which received the largest number of 8,491500 shares. The co-organizers are Korea Investment & Securities (52,8500 shares) and Mirae Asset Daewoo Securities (5049,000 shares). In addition, SK Securities (1836,000 shares), Samsung Securities (1,475,500 shares) and Hana Financial Investment (1,475,500 shares) will participate as the acquisition team.

Is it possible?… SK Bioscience, as seen in the stock market,

SK Biosciences will be listed on the stock market on the 18th. On the day of listing, the stock price is 169,000 won when the initial price starts at twice the public offering price and then records the upper limit (depending on). You can see a margin of 104,000 won per share. Considering that SK Bioscience’s share price is in the 200,000 won range in the over-the-counter market, there is a possibility of an additional rise.

Earlier, SK Biopharm, a subsidiary of the same group, recorded an upper limit on the day after the initial price was determined at twice the public offering price on the first day of listing, and recorded an upper limit on the next day.

SK Bioscience is evaluated as superior to SK Biopharm in terms of performance. As of September last year, sales were 158.6 billion won and operating profit was 26.8 billion won. Net profit also recorded 23 billion won. It is expected that earnings will increase significantly due to the consignment production of a novel coronavirus infection (Corona 19) vaccine.

In addition, SK Bioscience is researching and developing various vaccines such as flu vaccine, shingles vaccine, chickenpox vaccine, and Corona 19 vaccine.

Lee Hye-rin, a researcher at KTB Investment & Securities, said, “With the Corona 19 pandemic, global vaccine makers and business opportunities will expand, which will be a factor in raising the stock price (valuation) relative to earnings. “I can look forward to the last name,” he said.

Song-ryul Lee, reporter of Hankyung.com [email protected]