Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

<ul>
<li>The reshuffle results align with expectations, but the decision to list 11 KOSDAQ Global stocks in April is surprising. Local authorities seem to prioritize boosting the derivatives market for liquidity.</li>
<li>Ecopro Materials' SSF listing, earlier than expected, attracts attention, potentially leading to an unusual basis pattern, coinciding with a major lockup release on May 17th.</li>
<li>We should also be wary of a pattern akin to last July's in KOSDAQ stocks. Spot prices of recent SSFs showed a pronounced short-term uptrend, especially in KOSDAQ, versus KOSPI.</li>
</ul>


The reshuffle results align with expectations, but the decision to list 11 KOSDAQ Global stocks in April is surprising. Local authorities seem to prioritize boosting the derivatives market for liquidity.
Ecopro Materials' SSF listing, earlier than expected, attracts attention, potentially leading to an unusual basis pattern, coinciding with a major lockup release on May 17th.
We should also be wary of a pattern akin to last July's in KOSDAQ stocks. Spot prices of recent SSFs showed a pronounced short-term uptrend, especially in KOSDAQ, versus KOSPI.


KRX's Official SSF/SSO Reshuffle Results: Trading Considerations

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Private Capital Markets

<ul>
<li>In this insight, we discuss our initial thoughts on the Golfzon County IPO which is likely in 1H 2023.</li>
<li>As of September 2022, Golfzon County owned and operated 18 golf courses and 387 holes, the largest in Korea. </li>
<li>Golfzon Newdin owns a 43.2% in Golfzon County. We estimate Golfzon Newdin's market cap to be 273 billion won or 6,369 won per share, representing a 44% upside. </li>
</ul>


In this insight, we discuss our initial thoughts on the Golfzon County IPO which is likely in 1H 2023.
As of September 2022, Golfzon County owned and operated 18 golf courses and 387 holes, the largest in Korea. 
Golfzon Newdin owns a 43.2% in Golfzon County. We estimate Golfzon Newdin's market cap to be 273 billion won or 6,369 won per share, representing a 44% upside. 


Initial Thoughts on Golfzon County IPO: Impact on Golfzon Newdin Holdings

Equity Capital Markets

Golfzon Commerce / Equity Capital Markets

<ul>
<li>Our base case valuation analysis suggests a target price of 9,405 won per share, which is 25% lower than the mid-point of the IPO price range.</li>
<li>Given the lower expected target price relative to the IPO price range, we have a Negative view of Golfzon Commerce IPO. </li>
<li>Golfzon Commerce is the number one distributor of golf products such as clubs, shoes, apparel in Korea. The book building for the institutional investors starts on 11 October.</li>
</ul>


Our base case valuation analysis suggests a target price of 9,405 won per share, which is 25% lower than the mid-point of the IPO price range.
Given the lower expected target price relative to the IPO price range, we have a Negative view of Golfzon Commerce IPO. 
Golfzon Commerce is the number one distributor of golf products such as clubs, shoes, apparel in Korea. The book building for the institutional investors starts on 11 October.


<ul>
<li>Golfzon Commerce is getting ready to complete its IPO in Korea in October. The total offering amount is from 80.2 billion won to 99.8 billion won. </li>
<li>The expected market cap of the IPO is from 323 billion won to 336 billion won. The book building for the institutional investors starts on 11 October. </li>
<li>Golfzon Commerce operates Golfzon Market (a leading golf shop chain in Korea) and Golping (golf related e-commerce site). </li>
</ul>


Golfzon Commerce is getting ready to complete its IPO in Korea in October. The total offering amount is from 80.2 billion won to 99.8 billion won. 
The expected market cap of the IPO is from 323 billion won to 336 billion won. The book building for the institutional investors starts on 11 October. 
Golfzon Commerce operates Golfzon Market (a leading golf shop chain in Korea) and Golping (golf related e-commerce site). 


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>There are 12 inclusions and 12 exclusions for the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the June rebalance to be implemented at the close on 9 June.</li>
<li>Most of the inclusions were expected, but there are quite a few surprises among the deletions. The impact on the deletions will be higher than that on the inclusions.</li>
<li>The adds have outperformed the deletes and there has been another leg up in the last couple of weeks. Expect the trend to continue till implementation week.</li>
</ul>


There are 12 inclusions and 12 exclusions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance to be implemented at the close on 9 June.
Most of the inclusions were expected, but there are quite a few surprises among the deletions. The impact on the deletions will be higher than that on the inclusions.
The adds have outperformed the deletes and there has been another leg up in the last couple of weeks. Expect the trend to continue till implementation week.


KOSDAQ150 Index Rebalance Preview: A Dozen Changes in June

South Korea

GOLFZON Co., Ltd manufactures and sells screen golf simulators. The Company develops software application as well as the hardware used in these screen golf simulators.

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GOLFZON (215000 KS)

KRX's Official SSF/SSO Reshuffle Results: Trading Considerations

As pointed out in this post, considering KOSDAQ additions as a long basket is suitable. However, stocks with high pre-reshuffle price appreciation...

Sanghyun Park

Initial Thoughts on Golfzon County IPO: Impact on Golfzon Newdin Holdings

In this insight, we discuss our initial thoughts on the Golfzon County IPO which is likely in 1H 2023. Golfzon County owns and operates 18 golf...

Douglas Kim

Golfzon Commerce IPO Valuation Analysis

Our base case valuation analysis suggests a target price of 9,405 won per share, which is 25% lower than the mid-point of the IPO price range. We...

Douglas Kim

Golfzon Commerce IPO Preview

Golfzon Commerce is getting ready to complete its IPO in Korea in October. The total offering amount is from 80.2 billion won to 99.8 billion won.

Douglas Kim

KOSDAQ150 Index Rebalance Preview: A Dozen Changes in June

There are 12 adds/deletes for the KOSDAQ150 in June. Most of the inclusions were expected while there appears to be discretion used in choosing the...

Brian Freitas

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