Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 10 January, it was reported that Hyundai Motor Securities (001500 KS)'s 200 billion won capital increase plan passed the Financial Supervisory Service's review.</li>
<li>Based on the recent revised report to the FSS, Hyundai Motor Securities disclosed that there is a risk of loss in domestic real estate PF and overseas real estate investment.</li>
<li>The company's decision to proceed with the capital raise is likely to weaken its share price to below its expected rights offering price of 6,640 won in the coming weeks.</li>
</ul>


On 10 January, it was reported that Hyundai Motor Securities (001500 KS)'s 200 billion won capital increase plan passed the Financial Supervisory Service's review.
Based on the recent revised report to the FSS, Hyundai Motor Securities disclosed that there is a risk of loss in domestic real estate PF and overseas real estate investment.
The company's decision to proceed with the capital raise is likely to weaken its share price to below its expected rights offering price of 6,640 won in the coming weeks.


Hyundai Motor Securities: FSS Approves A 200 Billion Won Capital Raise + Rising Real Estate PF Risk

<ul>
<li>After the market close on 12 December, the Financial Supervisory Service (FSS) put a break on Hyundai Motor Securities’ rights offering worth 200 billion won.</li>
<li>The proposed rights offering included issuing 30.1 million new shares, representing 95% of its current outstanding shares (31.7 million).</li>
<li>We would try to capitalize on the short term bullish upside on its shares of Hyundai Motor Securities and sell into strength.  </li>
</ul>


After the market close on 12 December, the Financial Supervisory Service (FSS) put a break on Hyundai Motor Securities’ rights offering worth 200 billion won.
The proposed rights offering included issuing 30.1 million new shares, representing 95% of its current outstanding shares (31.7 million).
We would try to capitalize on the short term bullish upside on its shares of Hyundai Motor Securities and sell into strength.  


FSS Puts a Break on Hyundai Motor Securities Rights Offering

Cross Asset Strategy

<ul>
<li>On 27 February, the Financial Supervisory Service (FSC) announced that it plans to give greater scrutiny on rights offerings and IPOs in Korea that could potentially destroy shareholder value.</li>
<li>Overall, these attempts to improve the rights offerings and IPOs in Korea appear to be a step in the right direction. </li>
<li>However, these measures are likely to negatively impact new rights offerings and IPOs in 2025. Various trading strategies involving rights offerings and new IPOs may need to be revised.</li>
</ul>


On 27 February, the Financial Supervisory Service (FSC) announced that it plans to give greater scrutiny on rights offerings and IPOs in Korea that could potentially destroy shareholder value.
Overall, these attempts to improve the rights offerings and IPOs in Korea appear to be a step in the right direction. 
However, these measures are likely to negatively impact new rights offerings and IPOs in 2025. Various trading strategies involving rights offerings and new IPOs may need to be revised.


Greater Scrutiny by the FSC on Rights Offerings and IPOs That Could Destroy Shareholder Value

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Keisei Electric Railway Co / Event-Driven

<ul>
<li>Remain BULLISH <a href="https://www.smartkarma.com/entities/keisei-electric-railway-co" target="_blank" data-smartkarma-citation="entities:10876:1" rel="noopener">Keisei Electric Railway Co (9009 JP) </a> with low conviction. This is buying on narrative rather than fundamentals but there is no need to not get involved.</li>
<li>
<a href="https://www.smartkarma.com/entities/vitasoy-intl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2807:1" rel="noopener">Vitasoy Intl Holdings (345 HK)</a>'s share price run up is excessive as Philip Ng and<a href="https://www.smartkarma.com/entities/yeo-hiap-seng-ltd" target="_blank" data-smartkarma-citation="entities:9051:1" rel="noopener">Yeo Hiap Seng (YHS SP)</a> over-extend their hand.</li>
<li>
<a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks (1973 JP)</a> has yet to trade below terms. The premium is small, perhaps reflecting the risk NEC will lower the minimum threshold. But there is still a fight here.</li>
</ul>


Remain BULLISH Keisei Electric Railway Co (9009 JP)  with low conviction. This is buying on narrative rather than fundamentals but there is no need to not get involved.

Vitasoy Intl Holdings (345 HK)'s share price run up is excessive as Philip Ng andYeo Hiap Seng (YHS SP) over-extend their hand.

Nec Networks (1973 JP) has yet to trade below terms. The premium is small, perhaps reflecting the risk NEC will lower the minimum threshold. But there is still a fight here.


Last Week in Event SPACE: Keisei Electric Railway, Vitasoy, NEC Network, ESR Group

<ul>
<li>On 27 November, Hyundai Motor (005380 KS) announced that it plans to buy back 1 trillion won worth of its shares (700 billion won to be cancelled).</li>
<li>Trump's aggressive tariff policy has been one of the major factors negatively impacting Hyundai Motor's share price in the past several months. </li>
<li>Hyundai Motor's valuation has become more attractive.  There are also other investments such as its stakes in Boston Dynamics and Hyundai Motor India that could be valued higher. </li>
</ul>


On 27 November, Hyundai Motor (005380 KS) announced that it plans to buy back 1 trillion won worth of its shares (700 billion won to be cancelled).
Trump's aggressive tariff policy has been one of the major factors negatively impacting Hyundai Motor's share price in the past several months. 
Hyundai Motor's valuation has become more attractive.  There are also other investments such as its stakes in Boston Dynamics and Hyundai Motor India that could be valued higher. 


Hyundai Motor: Share Buyback of 1 Trillion Won and Trump's Tariffs

South Korea

Hyundai Motor Securities Co. Ltd. provides securities dealing, brokerage, and underwriting services to its clients.  The Company also offers other financial services, such as futures and options trading, loans, beneficial certificates, mutual funds, and online trading.

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Hyundai Motor Securities (001500 KS)

Hyundai Motor Securities: FSS Approves A 200 Billion Won Capital Raise + Rising Real Estate PF Risk

Based on the recent revised report to the FSS, Hyundai Motor Securities disclosed that there is a risk of loss in domestic real estate PF and...

Douglas Kim

FSS Puts a Break on Hyundai Motor Securities Rights Offering

After the market close on 12 December, the Financial Supervisory Service (FSS) put a break on Hyundai Motor Securities’ rights offering worth 200...

Douglas Kim

Greater Scrutiny by the FSC on Rights Offerings and IPOs That Could Destroy Shareholder Value

On 27 February, the Financial Supervisory Service (FSC) announced that it plans to give greater scrutiny on rights offerings and IPOs in Korea that...

Douglas Kim

Last Week in Event SPACE: Keisei Electric Railway, Vitasoy, NEC Network, ESR 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

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