Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>In this insight, we review the major rights offerings/capital raises that were announced in Korea in 2024.</li>
<li>In general, the major rights offerings/capital raises tend to result in lower share prices one month, three months, and over a longer time frame. </li>
<li>There are some exceptions. Peptron and ABL Bio experienced higher share prices even after their capital raise announcements, especially after a longer time frame (3 months or more).</li>
</ul>


In this insight, we review the major rights offerings/capital raises that were announced in Korea in 2024.
In general, the major rights offerings/capital raises tend to result in lower share prices one month, three months, and over a longer time frame. 
There are some exceptions. Peptron and ABL Bio experienced higher share prices even after their capital raise announcements, especially after a longer time frame (3 months or more).


A Review of Rights Offerings/Capital Raise Announcements in Korea in 2024

Event-Driven

<ul>
<li><em><strong>There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025. </strong></em></li>
<li>Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).</li>
<li>FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.</li>
</ul>


There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025. 
Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).
FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.


A Proxy Fight for Korea Zinc in January 2025

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Korea Zinc's free float is dropping from 52% to 31%, a 21%p cut.</li>
<li>Despite rising volume, retail still dominates. With this trend continuing, the 80,000-share sell volume is unlikely to get buried without triggering noticeable price moves.</li>
<li>Ahead of big one-day flow events, shorts are loaded, causing a dip. On rebalance day, traders buy back, triggering a bounce. This event is likely to follow the same pattern.</li>
</ul>


Korea Zinc's free float is dropping from 52% to 31%, a 21%p cut.
Despite rising volume, retail still dominates. With this trend continuing, the 80,000-share sell volume is unlikely to get buried without triggering noticeable price moves.
Ahead of big one-day flow events, shorts are loaded, causing a dip. On rebalance day, traders buy back, triggering a bounce. This event is likely to follow the same pattern.


Flow Trading Setup Triggered by Korea Zinc’s 21%p Float Rate Cut in KOSPI 200

Global Materials | Industrials | Commodities

Rahul Jain

Thematic (Sector/Industry)

<ul>
<li>Zinc market tone for 2025 is cautious, with most producers guiding flat to lower volumes as concentrate supply remains tight and benchmark TCs hit 50-year lows.</li>
<li>Glencore, Teck, and South32 are dialing back output, while Korea Zinc is facing margin compression. Boliden is raising output via acquisitions and restarts, but still faces integration and cost risks.</li>
<li>Hindustan Zinc stands apart—delivering growth, industry-best 53% EBITDA margins, and sub-$1,000/t cost targets, making it a margin fortress in a soft market. </li>
</ul>


Zinc market tone for 2025 is cautious, with most producers guiding flat to lower volumes as concentrate supply remains tight and benchmark TCs hit 50-year lows.
Glencore, Teck, and South32 are dialing back output, while Korea Zinc is facing margin compression. Boliden is raising output via acquisitions and restarts, but still faces integration and cost risks.
Hindustan Zinc stands apart—delivering growth, industry-best 53% EBITDA margins, and sub-$1,000/t cost targets, making it a margin fortress in a soft market. 


Zinc’s Cycle Turns: Will Supply Outpace Demand?

KT&G Corporation / Equity Capital Markets

<ul>
<li>On 14 October, FCP Capital sent a proposal to KT&amp;G to purchase Korea Ginseng Corp for 1.9 trillion won. </li>
<li>Although KT&amp;G stated that it has no intentions to sell Korea Ginseng Corp, this proposal highlights the ongoing pressure by FCP Capital to improve further value in KT&amp;G.</li>
<li>The 1.9 trillion won in proposed purchase price is higher than the 1.2 trillion won to 1.3 trillion won that KT&amp;G revealed as the intrinsic value of Korea Ginseng Corp.</li>
</ul>


On 14 October, FCP Capital sent a proposal to KT&amp;G to purchase Korea Ginseng Corp for 1.9 trillion won. 
Although KT&amp;G stated that it has no intentions to sell Korea Ginseng Corp, this proposal highlights the ongoing pressure by FCP Capital to improve further value in KT&amp;G.
The 1.9 trillion won in proposed purchase price is higher than the 1.2 trillion won to 1.3 trillion won that KT&amp;G revealed as the intrinsic value of Korea Ginseng Corp.


FCP Capital Sends a Proposal to KT&G to Buy Korea Ginseng Corp for 1.9 Trillion Won

South Korea

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

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Korea Zinc (010130 KS)

A Review of Rights Offerings/Capital Raise Announcements in Korea in 2024

We review the major rights offerings/capital raises that were announced in Korea in 2024. In general, the major rights offerings/capital raises...

Douglas Kim

A Proxy Fight for Korea Zinc in January 2025

MBK mentioned that Korea Zinc should conduct a stock split instead of a capital increase to increase shares trading liquidity. MBK stated that if...

Douglas Kim

Flow Trading Setup Triggered by Korea Zinc’s 21%p Float Rate Cut in KOSPI 200

This post takes a closer look at the flow trading setup created by the 21%p float rate cut of Korea Zinc in the KOSPI 200 and how it’s likely to...

Sanghyun Park

Zinc’s Cycle Turns: Will Supply Outpace Demand?

2025 zinc market cautious as producers cut output due to tight supply and low benchmark TCs, Hindustan Zinc stands out with strong growth and...

Rahul Jain

FCP Capital Sends a Proposal to KT&G to Buy Korea Ginseng Corp for 1.9 Trillion Won

On 14 October, an activist fund Flashlight Capital Partners (FCP) sent a proposal to KT&G Corporation (033780 KS) to purchase Korea Ginseng Corp...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A Review of Rights Offerings/Capital Raise Announcements in Korea in 2024

We review the major rights offerings/capital raises that were announced in Korea in 2024. In general, the major rights offerings/capital raises...

Douglas Kim

A Proxy Fight for Korea Zinc in January 2025

MBK mentioned that Korea Zinc should conduct a stock split instead of a capital increase to increase shares trading liquidity. MBK stated that if...

Douglas Kim

Flow Trading Setup Triggered by Korea Zinc’s 21%p Float Rate Cut in KOSPI 200

This post takes a closer look at the flow trading setup created by the 21%p float rate cut of Korea Zinc in the KOSPI 200 and how it’s likely to...

Sanghyun Park

Zinc’s Cycle Turns: Will Supply Outpace Demand?

​2025 zinc market cautious as producers cut output due to tight supply and low benchmark TCs, Hindustan Zinc stands out with strong growth and...

Rahul Jain

FCP Capital Sends a Proposal to KT&G to Buy Korea Ginseng Corp for 1.9 Trillion Won

On 14 October, an activist fund Flashlight Capital Partners (FCP) sent a proposal to KT&G Corporation (033780 KS) to purchase Korea Ginseng Corp...

Douglas Kim

2025 zinc market cautious as producers cut output due to tight supply and low benchmark TCs, Hindustan Zinc stands out with strong growth and...