[Click eStock] SK, BioPharm Is Not the End

Increased Possibility of Additional SK Biopharm Stake Sale
Expectations for Cash Securing and Special Dividends
Listing Timelines for SK Siltron and SK Pharmteco May Also Be Accelerated

On the afternoon of the 2nd, when SK Biopharm was newly listed, a stock price graph was displayed on the Infomax monitor in Jongno-gu, Seoul. On that day, SK Biopharm surged to the price limit (29.59%) compared to the opening price, closing at 127,000 won.
[Photo by Yonhap News]

[Asia Economy Reporter Minwoo Lee] There is an analysis that SK Group's holding company SK still has potential for stock price growth even after the listing of SK Biopharm. It is highly likely that a special dividend will be issued through additional sales of SK Biopharm shares, and the listings of SK Siltron and SK Pharmteco may also be expedited.

On the 6th, Yuanta Securities gave SK a 'Buy' rating and raised the target price by 18.8% to 380,000 KRW. After the listing of SK Biopharm on the 2nd, the market judged that there was no room for SK's stock price to rise, causing SK's stock price to fall by about 12%, but analysis shows that potential still remains.

First, SK's value is analyzed to be linked to SK Biopharm's stock price. Namgon Choi, a researcher at Yuanta Securities, explained, "About 5 trillion KRW of SK Biopharm's value is reflected in SK's net asset value (NAV). After the sale of existing SK Biopharm shares, the remaining 75% stake is worth about 9.7 trillion KRW at market price, and the higher SK Biopharm's stock price rises, the more attractive SK's valuation becomes."

Additional sales of SK Biopharm shares are also a positive factor. It is expected that some sales will be possible after the six-month lock-up period for the largest shareholder's shares expires. If SK Biopharm's market capitalization maintains its current level (12.9 trillion KRW), SK could secure 3.22 trillion KRW in cash through additional share sales.

There is also room for further stock price growth after SK Biopharm's listing. SK has already secured 307 billion KRW in pre-tax cash from the sale of existing SK Biopharm shares and is expected to pay a special dividend (500 to 1,000 KRW) to some investors. The remainder is likely to be used as initial investment funds for SK Biopharm's bio pipeline. For example, SK participated in the Series B investment of the Singaporean venture company 'Hummingbird Bioscience.'

The IPOs of subsidiaries are also expected to be expedited. Researcher Choi said, "The success of SK Biopharm's IPO has stimulated SK management, and accordingly, the IPO schedules of SK Siltron and SK Pharmteco are expected to be brought forward. In the mobility sector, SK is likely to seek platform business opportunities through mergers and acquisitions (M&A), so it is necessary to closely watch the movements of related companies."

This content was produced with the assistance of AI translation services.