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

Reporter Kim Youngwoo [email protected]

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

SK Bioscience, subscribes to a public offering on the 10th

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

Considering that the size of the public offering is approximately 1.5 trillion won, the amount spent by the institutions amounted to 1,000 trillion won. In this demand forecast, a total of 1,464 places participated, among them 1,172 nationals and 292 foreigners. 97% of the participating institutions offered a price that exceeded the desired price range, and the proportion of mandatory holding commitments that promised not to sell shares during a given period was 59.92% of the total amount.

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

How can I get one more week?

To receive one more share of the public offering, the most advantageous way is to subscribe all the available securities companies with the minimum number of subscriptions. Starting this year, the subscription distribution system for public offering shares has changed from a proportional method to “equal 50% + 50% proportional”.

Equitable allocation is a method of distributing half of the public offering shares that are shared by individual investors to whom they have subscribed. Of course, according to the modified public offering share distribution system, if there is a large underwriting margin, additional allotments may be received on a pro rata basis.

Since SK Bioscience’s public offering price is determined to be 65,000 won, which is the highest, 325,000 won must be placed as margin for at least 10 weeks of subscription. If the margin is small, this means that it is more advantageous to subscribe to multiple accounts in a minimum unit rather than concentrating on a single brokerage firm. Even if you get the highest competition rate, you can get at least a week if you subscribe, so if you subscribe from a total of six locations, including the subscription organizer and subscription team, you can get at least six weeks.

If you have not insured all the accounts, it is more advantageous to do so with a brokerage firm that has the highest amount of allowance. 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 the SK Bioscience IPO was NH Investment & Securities, which received the highest amount of 8,491500 shares. The co-organizers are Korea Investment & Securities (5,278,000 shares) and Mirae Asset Daewoo Securities (5,049,000 shares). Additionally, SK Securities (1,836,000 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 go public on the 18th. On the day of the listing, the share price is 169,000 won when the initial price starts at double the public offering price and then hits the upper limit (as per). You can see a margin of 104,000 won per share. Considering that SK Bioscience’s share price is in the range of 200,000 won on the OTC market, there is the possibility of a further increase.

Previously, SK Biopharm, a subsidiary of the same group, posted an upper limit the day after the initial price was set at twice the public offering price on the first trading day, and posted an upper limit the next day.

SK Bioscience is evaluated as superior to SK Biopharm in terms of performance. In September of last year, sales were 158.6 billion won and operating profit was 26.8 billion won. The net profit also recorded 23 billion won. Profits are expected to increase significantly with consignment production of a new vaccine against coronavirus infection (Corona 19).

Additionally, SK Bioscience is researching and developing various vaccines, such as the Flu Vaccine, Shingles Vaccine, Varicella Vaccine, and Corona 19 Vaccine, and there are high expectations in the field of biopharmaceutical shipments production ( CMO) and Shipping Development Production (CDMO).

Lee Hye-rin, a researcher at KTB Investment & Securities, said: “With the Corona 19 pandemic, global vaccine manufacturers and business opportunities will expand, which will be a factor in raising the price (valuation) of stocks in compared to earnings. ” I can wait for the last name, “he said.

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