Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

HD Hyundai Marine Solution  / Event-Driven

<ul>
<li>We discuss the end of the mandatory lock-up periods for 56 stocks in Korea in November 2024, among which six are in KOSPI and 50 are in KOSDAQ.</li>
<li>These 56 stocks on average could be subject to further selling pressures in November and could underperform relative to the market. </li>
<li>The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in November are HD Hyundai Marine Solution, Asicland, and Daemyung Energy. </li>
</ul>


We discuss the end of the mandatory lock-up periods for 56 stocks in Korea in November 2024, among which six are in KOSPI and 50 are in KOSDAQ.
These 56 stocks on average could be subject to further selling pressures in November and could underperform relative to the market. 
The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in November are HD Hyundai Marine Solution, Asicland, and Daemyung Energy. 


End of Mandatory Lock-Up Periods for 56 Companies in Korea in November 2024

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

Index Rebalance

Hyosung Heavy Industries Corp / Index Rebalance

Hyosung Heavy Industries Corp (298040 KS)

<ul>
<li>85% of the way through the review period, there could be 4 adds and 5 deletes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> in December.</li>
<li>The impact on the potential inclusions ranges from 1.4-17 days of ADV while the impact on the potential deletions varies from 4-8 days of ADV.</li>
<li>The potential adds outperformed the potential deletes early in the review period before giving up all the gains over the following months.</li>
</ul>


85% of the way through the review period, there could be 4 adds and 5 deletes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.
The impact on the potential inclusions ranges from 1.4-17 days of ADV while the impact on the potential deletions varies from 4-8 days of ADV.
The potential adds outperformed the potential deletes early in the review period before giving up all the gains over the following months.


KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

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.

Equity Capital Markets

<ul>
<li>To justify a higher multiple, K-Bank is comparing itself to international internet banks, with KakaoBank as the only local peer. Differences in market conditions could complicate this comparison.</li>
<li>This might explains why K-Bank is cautiously testing the market by announcing the rights issue first and delaying the prospectus, amid regulatory crackdowns on inflated IPOs.</li>
<li>Controversy over high multiples from overseas peers and KakaoBank’s legal discount will be key in setting K-Bank’s IPO pricing.</li>
</ul>


To justify a higher multiple, K-Bank is comparing itself to international internet banks, with KakaoBank as the only local peer. Differences in market conditions could complicate this comparison.
This might explains why K-Bank is cautiously testing the market by announcing the rights issue first and delaying the prospectus, amid regulatory crackdowns on inflated IPOs.
Controversy over high multiples from overseas peers and KakaoBank’s legal discount will be key in setting K-Bank’s IPO pricing.


The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped

<ul>
<li>The momentum for getting ahead on positions with KOSPI 200 rebalancing is holding steady. With around 60% of the screening period behind us, it’s time to start preparing our positions.</li>
<li>The current rebalancing's screened changes have a relatively lower price volatility, suggesting a stronger chance for more aggressive position build-up now compared to previous rebalancings.</li>
<li>Trading volumes vary greatly among these changes, affecting their passive impact sizes. Consider using different weights in basket trading instead of equal weights.</li>
</ul>


The momentum for getting ahead on positions with KOSPI 200 rebalancing is holding steady. With around 60% of the screening period behind us, it’s time to start preparing our positions.
The current rebalancing's screened changes have a relatively lower price volatility, suggesting a stronger chance for more aggressive position build-up now compared to previous rebalancings.
Trading volumes vary greatly among these changes, affecting their passive impact sizes. Consider using different weights in basket trading instead of equal weights.


KOSPI 200 December Rebalancing: Key Points to Watch for in Proactive Position Build-Up

<ul>
<li>The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August. Only 4 trading days to go.</li>
<li>We see 7 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 12 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.</li>
<li>The upward migrations have underperformed the downward migrations over the last month as a few stocks have sold off hard. Some despite being included in global indices.</li>
</ul>


The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August. Only 4 trading days to go.
We see 7 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 12 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
The upward migrations have underperformed the downward migrations over the last month as a few stocks have sold off hard. Some despite being included in global indices.


KOSPI Size Indices: Momentum Stalls; (Some) Upward Migrations Sell-Off

South Korea

HD Hyundai Marine Solution Co., Ltd. operates as a engineering service company. The Company provides maintenance and other related services. HD Hyundai Marine Solution also offers ecological friendly solution development, smart solution utilizing information and communications technology, and power plant services.

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HD Hyundai Marine Solution (443060 KS)

End of Mandatory Lock-Up Periods for 56 Companies in Korea in November 2024

We discuss the end of the mandatory lock-up periods for 56 stocks in Korea in November 2024, among which six are in KOSPI and 50 are in KOSDAQ.

Douglas Kim

KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

There could be 4 adds, 5 deletes for the KOSPI200 in December. Passive impact ranges from 1.4-17 days of ADV. The adds outperformed the deletes...

Brian Freitas

The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped

This post examines why K-Bank chose to reveal pricing details before the IPO prospectus, in a bid to test market reaction.

Sanghyun Park

KOSPI 200 December Rebalancing: Key Points to Watch for in Proactive Position Build-Up

This post previews the KOSPI 200 December rebalancing and discusses key points for proactive position build-up, now that 60% of the screening...

Sanghyun Park

KOSPI Size Indices: Momentum Stalls; (Some) Upward Migrations Sell-Off

There could be 41 changes to the KOSPI Size Indices in September. The upward migrations have underperformed the downward migrations over the last...

Brian Freitas

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