The formula of ‘investment in public offering = jackpot’ shows signs of cracking. This is because the IPO price of the game company Krafton, which had been considered as a major IPO stock, fell after the IPO. Far from being ‘dazzling’ (the upper limit after the opening price is doubled compared to the public offering price), it has entered the loss zone.
Interview with accountant Park Dong-heum, veteran public stock investor
There is a person who foretold this situation in advance. Park Dong-heum is an accountant who is the author of 『Investing in Public Offerings Like Accountant Park』 and an expert in analyzing corporate financial statements. He is a practical investor who has invested in public offering stocks for 15 years since 2007. The average annual return is over 60%. I met him at the accountant’s office in Mok-dong, Yangcheon-gu, Seoul on the 12th.
Accountant Park Dong-heum emphasized, “Even if the bubble in the public offering market bursts, do not leave the market.” [사진 박동흠]
- Investing experience in public stocks is great.
- “Starting with STX Pan Ocean in 2007, we started investing in public offering stocks. We have invested in hundreds of stocks in the past. There were companies that delivered high returns such as Samsung SDS, Cheil Industries, Haitai Confectionery, Kolon Life Sciences, and SK Biopharmaceuticals, but Samsung Life and Netmarble and others suffered losses.”
- The stocks with the highest returns.
- “I don’t remember exactly, but Korea Aerospace Industries impressed me the most. I invested 15,500 won in an initial public offering in 2011, and I believed in the growth potential of the aviation industry and held it for 4 years. .”
- What is the investment performance these days? Krafton shares are sluggish.
- “The rate of return is compiled at the end of every year. Last year’s average rate of return was 71%, which seems to break the record high every year. This year, we invested in SK Bioscience and SK IE Technology. We did not invest in Krafton and Kakao Bank among large public offerings. No matter how much I analyzed it, I didn’t think it was cheap. It priced an offering price compared to a different company, not a similar company, and reflected the expected future performance. Krafton compared with Walt Disney and Blizzard, which have a P/E ratio of 89 times, etc. It makes no sense. In the case of Kakao Bank, it is a banker by nature. Considering that it is limited to domestic individual retail banking, it is too expensive.”
- How about investing in Krafton now?
- “I don’t think that’s the case. The stock price (about 430,000 won as of the 13th) is lower than the public offering price (498,000 won), but the dependence on the game ‘Battle Ground’ is too high. In addition to the ‘one game risk’ (risk), the Indian market that has recently entered the market It is uncertain whether the performance will explode in the
- There are also claims that the IPO stock fever has waned when looking at the Krafton case.
- “It is difficult to say that the enthusiasm has waned when looking at the margin (58 trillion won) entered into the Kakao Bank subscription. Rather, it should be viewed as the result of investors’ selective approach based on accumulated experience.”
Investors are being consulted at the window of a securities company in Seoul on the 2nd, the first day of general subscription for public offering shares of game company Krafton. yunhap news
- Is there a way to cover the jade?
- “It is basic to analyze the prospectus. Although the volume is large, you only need to check the important points. Big ▶ Investment risk ▶ Position of public offering ▶ Comparison with similar companies ▶ Number of available shares ▶ Reason for IPO ▶ Business details ▶ Company finances There are 7 types of status, profit and loss, etc. The approximate atmosphere can be estimated from the results of institutional demand forecasting. There are exceptions, but if there are more than 1,000 institutions, the probability of earning profits is high. 621 places participated in Krafton.)”
- Is it good to sell public offerings on the first day after listing?
- “It’s hard to say precisely. It varies from company to company. It is right to sell when stocks with high IPO prices soar, but it is better to take them for a long time if you can see growth potential. Such is the case with SK Bioscience, which had a sluggish share price at the beginning of the listing and recently surged. “
- An attractive IPO share in the second half.
- “I don’t know yet because I have to read the prospectus to make a decision. First, pay attention to the large shipbuilder Hyundai Heavy Industries, which is scheduled to subscribe in September.”
- A word to investors.
- “Many investors take for granted the ‘discount’ of public offering stocks, which is an extremely unusual phenomenon. In particular, large-cap stocks should not be expected unconditionally. There are many cases where there is nothing to eat at a famous feast. It’s an investment. You can make money consistently if you stick to the basics. Also, don’t leave the market, as the bubble in the public offering market will burst someday, you may miss an opportunity.”
Reporter Hwang Eui-young apex@joongang.co.kr
