[Asia Economy Reporter Hyungsoo Park] KTB Investment & Securities is showing strong performance day after day. This appears to be the result of a surge in venture capital stock prices in the domestic stock market, raising expectations for the listing of its subsidiary KTB Network.
As of 9:36 AM on the 7th, KTB Investment & Securities is trading at 5,650 KRW, up 6.3% from the previous day. Its market capitalization is approximately 340 billion KRW.
KTB Network signed an underwriting agreement for its initial public offering (IPO) on the 17th of last month. The lead underwriter is Korea Investment & Securities. NH Investment & Securities is participating as a co-underwriter. Korea Investment & Securities and NH Investment & Securities were the co-underwriters when the IPO was pursued in 2018.
KTB Network is a 100% subsidiary of KTB Investment & Securities. It is pursuing an IPO with the goal of listing on the KOSDAQ market within this year. Last year, KTB Network recorded an operating profit of 44.6 billion KRW and a net profit of 35.8 billion KRW. KTB Network was an early investor in Viva Republica, known for 'Toss,' and still holds shares.
Until last month, the estimated valuation for the listing was in the range of 500 to 600 billion KRW. This valuation was calculated by applying a price-to-earnings ratio (PER) of 20 times to last year's net profit and considering the public offering discount rate applied at the time of the IPO.
Recently, the market capitalizations of Woori Technology Investment and AJU IB Investment surpassed 1 trillion KRW, leading to a simultaneous rise in the valuation of venture capital firms. Considering recent stock market trends, there are forecasts that KTB Network's market capitalization will exceed 700 billion KRW.
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