Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Feb 14th which has an aggregated short interest worth USD3.7bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in SK Hynix, Hanwha Ocean.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Feb 14th which has an aggregated short interest worth USD3.7bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in SK Hynix, Hanwha Ocean.


KRX Short Interest Weekly (Feb 14th): SK Hynix, Hanwha Ocean

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in these targeted companies.</li>
<li>What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week and month.</li>
<li>The number of tender offers in Korea increased from 6 in 2020 to 12 in 2021, 7 in 2022, 18 in 2023, and 28 in 2024.</li>
</ul>


In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in these targeted companies.
What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week and month.
The number of tender offers in Korea increased from 6 in 2020 to 12 in 2021, 7 in 2022, 18 in 2023, and 28 in 2024.


A Review of Tender Offers in Korea in 2024

<ul>
<li>Hyundai G.F. Holdings announced that it is making a tender offer of a 15% stake its affiliate Ezwelfare (090850 KS) (Hyundai Ezwel Co).</li>
<li>The tender offer involves 3,561,954 shares of Hyundai Ezwel, at the tender offer price of 7,000 won per share (15.7% higher than the closing price on 9 November).</li>
<li>On Monday (11 November), Hyundai Ezwel's share price could reach about 1-3% below the tender offer price (about 6,800 won to 6,930 won) in the first few minutes of trading. </li>
</ul>


Hyundai G.F. Holdings announced that it is making a tender offer of a 15% stake its affiliate Ezwelfare (090850 KS) (Hyundai Ezwel Co).
The tender offer involves 3,561,954 shares of Hyundai Ezwel, at the tender offer price of 7,000 won per share (15.7% higher than the closing price on 9 November).
On Monday (11 November), Hyundai Ezwel's share price could reach about 1-3% below the tender offer price (about 6,800 won to 6,930 won) in the first few minutes of trading. 


Hyundai GF Holdings: A Tender Offer of 15% Stake in Hyundai Ezwel

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I (3382 JP)</a> selling <a href="https://www.smartkarma.com/entities/seven-bank-ltd" target="_blank" data-smartkarma-citation="entities:16063:1" rel="noopener">Seven Bank (8410 JP)</a> is obvious. It has been obvious. It is non-core. It's always been non-core. It was made  clear in previous Strategy announcements,</li>
<li>
<a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener">PCCW Ltd (8 HK)</a>'s premium to NAV is unjustified. However reversing the stub has not been going to plan of late, as the NAV premium continues to widen.</li>
<li>Mavcom HAS approved the <a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a> deal. But still welcomes public consultation. So, approved or not?</li>
</ul>



Seven &amp; I (3382 JP) selling Seven Bank (8410 JP) is obvious. It has been obvious. It is non-core. It's always been non-core. It was made  clear in previous Strategy announcements,

PCCW Ltd (8 HK)'s premium to NAV is unjustified. However reversing the stub has not been going to plan of late, as the NAV premium continues to widen.
Mavcom HAS approved the Malaysia Airports Holdings (MAHB MK) deal. But still welcomes public consultation. So, approved or not?


Last Week in Event SPACE: Seven & I/Seven Bank, PCCW, Malaysia Airports, I'rom Group

<ul>
<li>On 7 November, it was reported that E&amp;I Holdings (company's largest shareholder) plans to conduct a tender offer of 18,937,913 common shares of Koentec, representing 37.88% of its outstanding shares.</li>
<li>E&amp;I Holdings plans to purchase all the shares of Koentec and delist the company.</li>
<li>There have been three small cap tender offers in Korea in the past week which suggests more smaller Korean companies trying to unlock higher value through the tender offer strategy.</li>
</ul>


On 7 November, it was reported that E&amp;I Holdings (company's largest shareholder) plans to conduct a tender offer of 18,937,913 common shares of Koentec, representing 37.88% of its outstanding shares.
E&amp;I Holdings plans to purchase all the shares of Koentec and delist the company.
There have been three small cap tender offers in Korea in the past week which suggests more smaller Korean companies trying to unlock higher value through the tender offer strategy.


South Korea

Gradiant Corporation operates as a electronic commerce retail company. The Company provides smart shopping, books, travel, performance planning and production, ticket reservation and sales agency, and other related services. Gradiant markets its products worldwide.

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Gradiant (035080 KS)

KRX Short Interest Weekly (Feb 14th): SK Hynix, Hanwha Ocean

We analyzed KRX short interest report for the past week and highlighted short interest changes in SK Hynix, Hanwha Ocean.

Ke Yan, CFA, FRM

A Review of Tender Offers in Korea in 2024

In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in...

Douglas Kim

Hyundai GF Holdings: A Tender Offer of 15% Stake in Hyundai Ezwel

Hyundai G.F. Holdings announced that it is making a tender offer of a 15% stake its affiliate Ezwelfare (090850 KS) (Hyundai Ezwel Co).

Douglas Kim

Last Week in Event SPACE: Seven & I/Seven Bank, PCCW, Malaysia Airports, I'rom Group

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Koentec: Tender Offer and Delisting

On 7 November, it was reported that E&I Holdings (company's largest shareholder) plans to conduct a tender offer of 18,937,913 common shares of...

Douglas Kim

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