Hyundai Card's IPO process goes smoothly The card company's shortlisted securities firms held presentations recently
이 기사는 2019년 11월 21일 08:00 더벨 유료페이지에 표출된 기사입니다.South Korean credit card company Hyundai Card's planned initial public offering (IPO) is going smoothly. The company recently completed its presentation process to select its lead managers.
According to investment banking industry sources, shortlisted securities firms for Hyundai Card's IPO held presentations on November 7 and 8. Three local securities firms - NH Investment & Securities, Korea Investment & Securities, Mirae Asset Daewoo - and three overseas banks - JP Morgan, Morgan Stanley, Citi Global Market Securities - are included in the shortlist. The card company is likely to decide its lead managers by the end of this month. Industry watchers expect the company will select two lead managers, including one local securities firm and one overseas bank.
Local securities firms reportedly presented Hyundai Card's enterprise value of more than 2.5 trillion won at their presentations. This is much higher than the market's conservative estimation of 1.8 trillion won.
Some houses seemingly pitched strategies of including fintech firms in its peer group. "Hyundai Card will hope to include fintech firms in its peer group to raise its enterprise value. The company will have to have platform business capabilities which can generate added value on the back of Hyundai Card's captive Hyundai Motor," said one investment banking source.
It would be hard for the card company to expect high enterprise value through its traditional card only business. This is because Hyundai Card's IPO valuation is calculated based on Samsung Card, the only listed card company in the country. Hyundai Card's price-to-book-value ratio (PBR) of 1.8 trillion won is based on Samsung Card's PBR of 0.57x. This reflects worsening business environment for Korean card firms due to sluggish domestic consumption and government regulations.
On the other hand, fintech is a rising star. Fintech firms' PBR or price earnings ratio (PER) are measured more generously compared to that of card companies. Recently listed fintech security firm Aton has its PER of 31.34 and PBR of 26.8 based on November 14's closing price.
Hyundai Card has been strengthening its fintech business. Hyundai Card has ties with Hyundai Motor. G Car Pay, a smart payment system developed by the card company, will be introduced in cars released under the Hyundai Motor Group's luxe brand Genesis. The car brand is expected to launch its first sport utility vehicle, the GV 80, later this month. The smart payment system will allow drivers to pay at gas stations or parking lots with just a touch of the infotainment screen inside the car.
(By reporter Lee Kyung-joo)
최신뉴스 in 전체기사
Translated by Kim So-in 의 다른 기사 보기
- Halla invests $85 mil in battery separator maker WCP
- Huons BioPharma attracts $132 mil from China's Imeik Technology Development
- KT newly creates control tower for investment
- New owner of SsangYong Motor needs to improve R&D capabilities
- Korea Investment PE to receive largest dividend ever from iron ore investment
- Praxis Capital acquires management rights of health supplement firm SeungMyeong
- F&F strengthens control over TaylorMade
- Namyang Dairy to improve governance structure after sale falls through
- Kakao Pay faces delay in IPO process due to heightened regulations
- Netmarble tried to acquire Hanssem with IMM PE
더벨 서비스 문의
02-724-4102유료 서비스 안내