Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX Stocks as of Jun 14th which has an aggregated holding worth USD547.8bn.</li>
<li>We estimate that foreign flows to be inflows of USD1,575mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight foreign changes in Sk Hynix, Samsung Electronics, Hanmi Semicon, Kia.</li>
</ul>


We analyzed the changes in foreign holdings of KRX Stocks as of Jun 14th which has an aggregated holding worth USD547.8bn.
We estimate that foreign flows to be inflows of USD1,575mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight foreign changes in Sk Hynix, Samsung Electronics, Hanmi Semicon, Kia.


KRX Foreign Holding Weekly (Jun 14th): Sk Hynix, Samsung Electronics, Hanmi Semicon, Kia

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 11 June, the FSC announced that the restrictions on allocation of treasury shares as new shares post spin-offs is expected to be made into law in 2H 2024.</li>
<li>Meanwhile, starting <strong>1 July,</strong> the financial regulators will make it more difficult for Korean companies to conduct spin-offs that have separate allocation of treasury shares as new shares.</li>
<li>The top five stocks with highest percentage of treasury shares/outstanding shares are up on average 40.5% YTD. </li>
</ul>


On 11 June, the FSC announced that the restrictions on allocation of treasury shares as new shares post spin-offs is expected to be made into law in 2H 2024.
Meanwhile, starting 1 July, the financial regulators will make it more difficult for Korean companies to conduct spin-offs that have separate allocation of treasury shares as new shares.
The top five stocks with highest percentage of treasury shares/outstanding shares are up on average 40.5% YTD. 


Changes in Law for Allocation of Treasury Shares as New Shares Post Spin-Offs in Korea in 2H 2024

<ul>
<li>We discuss the outlook for the likely impact on SK Inc post record divorce ruling for the SK Group Chairman Chey Tae-Won and his estranged wife Roh So-Young. </li>
<li>Last week, a South Korean appellate court ordered Chairman Chey to pay 1.38 trillion won to Roh. Chey is appealing this case and the Supreme Court's ruling is still pending. </li>
<li>It is in the best interest of SK Inc to raise the overall value of the company since the payment of the divorce is mostly based in cash.</li>
</ul>


We discuss the outlook for the likely impact on SK Inc post record divorce ruling for the SK Group Chairman Chey Tae-Won and his estranged wife Roh So-Young. 
Last week, a South Korean appellate court ordered Chairman Chey to pay 1.38 trillion won to Roh. Chey is appealing this case and the Supreme Court's ruling is still pending. 
It is in the best interest of SK Inc to raise the overall value of the company since the payment of the divorce is mostly based in cash.


Impact on SK Inc Post Record Divorce Ruling for SK Group Chairman Chey Tae-Won

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>Regardless of the divorce proceedings, SK still urgently needs SK Inc's stock price to rise for other reasons. That reason is to position SK Hynix directly under SK Inc.</li>
<li>SK Inc boosts stake in SK Square with SK Telecom shares, followed by a public tender offer to exchange SK Square shares for new SK Inc shares.</li>
<li>SK Inc's involvement in the divorce lawsuit makes it a focus for traders seeking relative outperformance among the SK companies involved in this situation.</li>
</ul>


Regardless of the divorce proceedings, SK still urgently needs SK Inc's stock price to rise for other reasons. That reason is to position SK Hynix directly under SK Inc.
SK Inc boosts stake in SK Square with SK Telecom shares, followed by a public tender offer to exchange SK Square shares for new SK Inc shares.
SK Inc's involvement in the divorce lawsuit makes it a focus for traders seeking relative outperformance among the SK companies involved in this situation.


Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix

<ul>
<li>The first trial in December 2022 ordered Chey to pay 67.5 billion KRW; today's ruling increased this to 1.38 trillion KRW plus 2 billion KRW, including splitting SK Inc. shares.</li>
<li>The increased settlement and SK Inc. share split could spark a management rights battle, causing SK Inc.'s stock price to jump as investors and shareholders react.</li>
<li>It may take a year for the final verdict, making a sustained stock price increase unlikely. Yet, differences between trial rulings could alter Chey's SK Inc. stake, sustaining market interest.</li>
</ul>


The first trial in December 2022 ordered Chey to pay 67.5 billion KRW; today's ruling increased this to 1.38 trillion KRW plus 2 billion KRW, including splitting SK Inc. shares.
The increased settlement and SK Inc. share split could spark a management rights battle, causing SK Inc.'s stock price to jump as investors and shareholders react.
It may take a year for the final verdict, making a sustained stock price increase unlikely. Yet, differences between trial rulings could alter Chey's SK Inc. stake, sustaining market interest.


Detailed Summary of Today's Second Trial Ruling in Chey Tae-Won's Divorce Case Involving SK Inc

South Korea

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

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SK Inc (034730 KS)

KRX Foreign Holding Weekly (Jun 14th): Sk Hynix, Samsung Electronics, Hanmi Semicon, Kia

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Sk Hynix, Samsung Electronics, Hanmi Semicon, Kia.

Ke Yan, CFA, FRM

Changes in Law for Allocation of Treasury Shares as New Shares Post Spin-Offs in Korea in 2H 2024

On 11 June, the FSC announced that the restrictions on allocation of treasury shares as new shares post spin-offs is expected to be made into law...

Douglas Kim

Impact on SK Inc Post Record Divorce Ruling for SK Group Chairman Chey Tae-Won

Major SK Group companies plan to convene on 28 June to discuss reorganization/sales of major SK Group affiliates. Three companies in particular are...

Douglas Kim

Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix

This post delves into the prospective merger among SK Inc, SK Square, and SK Telecom, examining intriguing trading perspectives.

Sanghyun Park

Detailed Summary of Today's Second Trial Ruling in Chey Tae-Won's Divorce Case Involving SK Inc

This post provides a detailed summary of today's second trial ruling in Chey Tae-won's divorce case involving his stake in SK Inc.

Sanghyun Park

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