Report
EUR 93.10
For Business Accounts Only
K Car is a used car marketplace and dealership operating in South Korea. The company operates 41 offline dealership branches across South Korea, as of July, 2021. The company also operates online platforms like and K Car App that allows customers to purchase used cars.
We like K Car leadership in both the overall used car sales market and online used car market. It dominates the online used car market and commands a significant lead over the next closest competitor.
Valuation is undoubtedly expensive excluding Carvana. Compared to Vroom on FY22 EV/Sales multiple, there is a good 18% upside from the low-end. Whereas valuation compared to the acquisition cost of K Car and Joy Rent implies about an 8x increase in valuation.
In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.
Our previous coverage of the IPO:
K Car Pre-IPO - Dominant leadership in the online space
K Car IPO - Peer Comparison and Valuation
K Car is looking to raise up to US$629m in its upcoming South Korea IPO.K Car is a used car marketplace and dealership operating in South Korea. The company operates 41 offline dealership branches across South Korea, as of July, 2021. The company also operates online platforms like and K Car App that allows customers to purchase used cars.
We like K Car leadership in both the overall used car sales market and online used car market. It dominates the online used car market and commands a significant lead over the next closest competitor.
Valuation is undoubtedly expensive excluding Carvana. Compared to Vroom on FY22 EV/Sales multiple, there is a good 18% upside from the low-end. Whereas valuation compared to the acquisition cost of K Car and Joy Rent implies about an 8x increase in valuation.
In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.
Our previous coverage of the IPO:
K Car Pre-IPO - Dominant leadership in the online space
Underlying
K Car
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Zhen Zhou Toh
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