[Exclusive] Dunamu, Operator of No.1 Upbit, Pursues Listing on New York Stock Exchange... Investors Hit Jackpot

Withdrawal from Nasdaq Listing, Pursuing New York Stock Exchange Listing
Expected Corporate Value of 100 Trillion Won...Increase in Investment Firm's Equity Value

Cryptocurrency exchange Upbit lounge price ticker in Gangnam-gu, Seoul.
[Photo by Yonhap News]

[Asia Economy Reporter Lee Seon-ae] Dunamu, the operator of Upbit, which is recording the largest cryptocurrency trading volume in Korea, is pursuing a listing on the New York Stock Exchange (NYSE) in the United States.

According to the investment banking (IB) industry on the 31st, it has been confirmed that Dunamu is actively holding meetings with global investment firms such as Goldman Sachs to pursue a listing on the NYSE. An IB industry official said, "Dunamu considered listing on NASDAQ and SPAC listings after the domestic listing but withdrew and ultimately decided to go with the NYSE listing." A senior official from an investment firm that invested in Dunamu said, "If the NYSE listing proceeds smoothly, the value of the investors' equity is expected to be re-evaluated."

The reason Dunamu chose to head to New York is to receive a proper valuation of its corporate value. Established in 2012, Dunamu is an unlisted company specializing in blockchain and fintech, operating the global standard digital asset exchange 'Upbit,' the social trading-based stock platform 'Securities Plus,' and the unlisted stock integrated trading platform 'Securities Plus Unlisted.' Upbit is recording the largest cryptocurrency trading volume in Korea. Currently, the daily trading volume exceeds 14 trillion KRW. This is more than seven times the trading volume maintained at 1 to 2 trillion KRW daily last year.

As cryptocurrency trading volume surges, active re-evaluation of Dunamu's corporate value, which operates Upbit, is underway. Considering that Hanwha Investment & Securities purchased Qualcomm's stake in Dunamu and DSC Investment purchased Atinum Investment's stake in Dunamu, the current corporate value is recognized at around 1.5 trillion KRW. An earnings surprise is expected in the first quarter, and based on this, an upward revision of the annual performance is anticipated, so the market expects a higher valuation. First-quarter sales are estimated at 460 billion KRW, and operating profit at 420 billion KRW. Accordingly, the annual operating profit is expected to exceed 1 trillion KRW significantly, according to industry views. The estimated net profit of Dunamu set by the investment industry is conservatively around 500 billion KRW, and even if only applying a price-earnings ratio (PER) of 20, which is half the average PER (40 times) of platform sectors such as Kakao and Naver, Dunamu's valuation is 9.7 trillion KRW. Therefore, the dominant view is that a valuation around 10 trillion KRW is sufficient.

If the NYSE listing proceeds smoothly, Dunamu can be recognized with a higher corporate value than in the domestic market. Coinbase, which is preparing for a NASDAQ listing, is valued at around 100 trillion KRW. Comparing Dunamu's expected annual performance this year with Coinbase's performance, the market evaluates that Dunamu's 100 trillion KRW expectation is not unreasonable.

Accordingly, expectations for the value of investors' equity are high. Among those currently holding Dunamu's shares, investors are paying attention to Woori Technology Investment, Atinum Investment, and Hanwha Investment & Securities.

If Dunamu is recognized with a corporate value of 20 trillion KRW, the equity value of Woori Technology Investment, which holds about 7.6%, would be at least 1.52 trillion KRW. Atinum Investment, estimated to hold about 6.4%, would also have an equity value of 1.28 trillion KRW. Hanwha Investment & Securities, estimated to hold about 6.2%, would have an equity value of 1.24 trillion KRW. If Dunamu is valued at 100 trillion KRW like Coinbase, Woori Technology Investment's equity value would exceed 7 trillion KRW, and the equity values of Atinum Investment and Hanwha Investment & Securities would surpass 6 trillion KRW.