thebell

전체기사

Hyundai Card's IPO process goes smoothly The card company's shortlisted securities firms held presentations recently

Translated by Kim So-in 공개 2019-11-21 08:00:00

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)

< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재 및 재배포 금지 >

더벨 서비스 문의

02-724-4102

유료 서비스 안내
주)더벨 주소서울특별시 중구 무교로 6 (을지로 1가) 금세기빌딩 5층대표/발행인성화용 편집인이진우 등록번호서울아00483
등록년월일2007.12.27 / 제호 : 더벨(thebell) 발행년월일2007.12.30청소년보호관리책임자김용관
문의TEL : 02-724-4100 / FAX : 02-724-4109서비스 문의 및 PC 초기화TEL : 02-724-4102기술 및 장애문의TEL : 02-724-4159

더벨의 모든 기사(콘텐트)는 저작권법의 보호를 받으며, 무단 전재 및 복사와 배포 등을 금지합니다.

copyright ⓒ thebell all rights reserved.