[편집자] This article was first published on January 14th at 2:56 pm on AI-analyzed investment service ‘Newspim Laciro’.
[서울=뉴스핌] Reporter Junhee Kim = The largest LG Energy Solution public offering in Korea is scheduled for the 18th to 19th. In the demand forecasting for institutional investors, the large amount of margin will be collected for public offerings, with a large number of purchase orders gathering and receiving a lot of attention.
In the US, earnings season begins. Financial stocks such as Morgan Stanley and Bank of America (BOA), as well as Netflix, announce their fourth quarter of last year’s operating results. As the strong earnings momentum led the stock market rebound whenever the stock market shakes due to the COVID-19 pandemic, it is expected how this earnings announcement will have an impact.
◆ LG Energy Solutions subscription on the 18th and 19th… Will the ‘market black hole’ ease?
According to the financial investment industry on the 14th, LG Energy Solutions will receive public offerings from general investors for two days from the 18th to the 19th. Subscriptions can be made at a total of seven securities companies, including KB Securities, the lead organizer, Daishin Securities, Shinhan Investment, and Mirae Asset Securities, Hana Financial Investment, Shinyoung Securities, and Hi Investment & Securities, which are participating as acquisition companies.
The subscription volume allocated to individual investors is 10.625,000 to 12.75 million shares, or 25 to 30% of the total public offering. The offering price is expected to be 300,000 won. In the demand forecast for institutional investors, which ended on the 12th, it is known that a purchase order for light units was placed. LG Energy Solutions is the first company to use a light unit in the demand forecast for public offering stocks.
LG Energy Solution’s public offering amount is 12.75 trillion won, the largest since Samsung Life Insurance (4.8 trillion won) in 2010. Based on the 300,000 won, which is the top of the public offering price, the market capitalization after listing on the KOSPI is about 70.2 trillion won, which is the third largest in the KOSPI. If it rises immediately after listing, it is expected to overtake SK Hynix to occupy the second place by market cap on the KOSPI.
In the meantime, the listing issue of LG Energy Solution has attracted attention as it is interlocked with supply and demand in the domestic stock market. It was the largest public offering ever, and as institutional and individual investors started to raise funds, a stock-selling bomb shook the domestic stock market. Analysts say that the impact on the domestic stock market could be greater if the inflow of passive funds following inclusion in the index is taken into account.
Kang Song-cheol, a researcher at Eugene Investment & Securities, said, “In the past, when large IPOs were listed, the KOSPI index often fell. In the case of LG Energy Solution, based on the market capitalization of KRW 70 trillion, it is more than 3% of the KOSPI market capitalization, so it may be a short-term burden in terms of supply and demand.”
There is also the view that individual investors expect a re-entry into the stock market. Kim Young-hwan, a researcher at NH Investment & Securities, said, “Competition for subscription to LG Energy Solutions is expected to be high. And after the subscription schedule, some of the funds tend to flow back into the stock market,” he explained.
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| LG Twin Tower [사진=LG] |
◆ Morgan Stanley, BOA, etc. earnings announcement… Expected ‘earnings surprise’
The negative external impact of concerns about the US Federal Reserve (Fed) tightening is expected to continue for the time being. “Fears of a Fed rate hike have resurfaced as key Fed members made public comments in support of a rate hike,” said Kim. “He said.
The New York Stock Exchange also fell sharply the day before (local time) on concerns about an interest rate hike. The Nasdaq Composite fell by 2.51% as the selling pressure was strengthened mainly on technology stocks with a heavy valuation burden.
As the U.S. stock market faltered, global stock markets, including emerging markets, were also shocked. Securities analysts are paying attention to whether the earnings announcements of US companies can create momentum for a stock market rebound. Considering the recent uncertainty in the stock market, it is calculated that corporate performance can serve as the strongest investment measure. This is why companies are also interested in ‘earning surprises’.
Global companies’ earnings announcements will begin on the 19th local time, starting with Morgan Stanley and BOA in the US. P&G, a global household goods company, and ASML, a Dutch manufacturer of extreme ultraviolet (EUV) exposure equipment for semiconductors, are also expected to release their operating results in the fourth quarter of last year.
On the 20th, the next day, Netflix releases its business results. As the number of subscribers increased due to the influence of K-content such as ‘Squid Game’ in the third quarter of last year, attention is also focused on the fourth quarter results. However, the prospects offered by some investment banks are not very bright. JP Morgan predicted that Netflix’s new subscribers would drop to 6.25 million, down from the forecast (8.5 million).
Kim Seong-hwan, a researcher at Shinhan Investment Corp., said, “The market’s expected fourth quarter sales and EPS (earnings per share) are 12.0% and 22.3% year-on-year,” said Kim Sung-hwan, a researcher at Shinhan Investment. And we will be able to exceed market expectations.”
Researcher Kim continued, “There are many grounds for earnings surprises, such as the robust macro (macroeconomic) environment, good results of companies that announced ahead of time, and higher earnings forecasts.” It is expected to be,” he said.
zunii@newspim.com
