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

<ul>
<li>There are 9 changes 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> in June. Most of the adds and all of the deletes were forecast.</li>
<li>The index committee have used their discretion and kept <a href="https://www.smartkarma.com/entities/fadu-inc" target="_blank" data-smartkarma-citation="entities:39896:1" rel="noopener">Fadu (440110 KS)</a> and <a href="https://www.smartkarma.com/entities/snh-inc" target="_blank" data-smartkarma-citation="entities:12212:1" rel="noopener">Snh Inc (051980 KS)</a> out of the index for yet another rebalance - no reason provided.</li>
<li>There's been little movement in the relative performance of the adds/deletes the last few months. The announcement of the changes could see the stocks move over the next few weeks.</li>
</ul>


There are 9 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) in June. Most of the adds and all of the deletes were forecast.
The index committee have used their discretion and kept Fadu (440110 KS) and Snh Inc (051980 KS) out of the index for yet another rebalance - no reason provided.
There's been little movement in the relative performance of the adds/deletes the last few months. The announcement of the changes could see the stocks move over the next few weeks.


KOSDAQ150 Index Rebalance: 9 Changes as Fadu Ignored Again

<ul>
<li>With the review period for the June rebalance complete, we highlight 11 potential changes 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>. </li>
<li>The estimated impact on the potential inclusions ranges from 0.2-7.5 days of ADV while the impact on the potential deletions varies from 0.2-5.8 days of ADV.</li>
<li>The forecast adds have outperformed the forecast deletes over the last 6-7 months with a big move higher in the last month. Trim positions into strength.</li>
</ul>


With the review period for the June rebalance complete, we highlight 11 potential changes for the KOSDAQ 150 Index (KOSDQ150 INDEX). 
The estimated impact on the potential inclusions ranges from 0.2-7.5 days of ADV while the impact on the potential deletions varies from 0.2-5.8 days of ADV.
The forecast adds have outperformed the forecast deletes over the last 6-7 months with a big move higher in the last month. Trim positions into strength.


KOSDAQ150 Index Rebalance Preview: Announcement Around the Corner

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.

Event-Driven

<ul>
<li>ACT's team for T'way Air's small shareholders plans to push for a public tender offer once they reach the 3% stake threshold.</li>
<li>Sono may shift its stance on a public tender offer. With a 3% stake gap, Sono must appease retail shareholders before the AGM, especially after the rights offering backlash.</li>
<li>FSC probe shows info leaks from brokers and law firms still trigger volume volatility before tender offers. Monitor T'way Air’s trading volume closely until February's end.</li>
</ul>


ACT's team for T'way Air's small shareholders plans to push for a public tender offer once they reach the 3% stake threshold.
Sono may shift its stance on a public tender offer. With a 3% stake gap, Sono must appease retail shareholders before the AGM, especially after the rights offering backlash.
FSC probe shows info leaks from brokers and law firms still trigger volume volatility before tender offers. Monitor T'way Air’s trading volume closely until February's end.


New Tender Trigger in Korea: Small Shareholder Collective Action Via Online Platform on T'way Air

Equity Capital Markets

<ul>
<li>ISU Petasys is betting the FSS chief, tied to the current administration, won’t have much market power due to the impeachment drama—and that gamble looks likely to pay off.</li>
<li>ISU Petasys' rights offering still offers solid trade potential, with 97% stockholder allocation and only 21% from the major shareholder, increasing the chance of significant unclaimed shares hitting the market.</li>
<li>Our plan is to grab stock rights cheap, ride the 15% discount, and capitalize on stock pullbacks, though lack of futures limits short hedging. Still, an unhedged setup looks promising.</li>
</ul>


ISU Petasys is betting the FSS chief, tied to the current administration, won’t have much market power due to the impeachment drama—and that gamble looks likely to pay off.
ISU Petasys' rights offering still offers solid trade potential, with 97% stockholder allocation and only 21% from the major shareholder, increasing the chance of significant unclaimed shares hitting the market.
Our plan is to grab stock rights cheap, ride the 15% discount, and capitalize on stock pullbacks, though lack of futures limits short hedging. Still, an unhedged setup looks promising.


ISU Petasys Ignores FSS: A Likely Short-Term Dip Sets up an Opportunity to Target 15% Discount

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Isupetasys (007660 KS) announced a large-scale rights offering worth 550 billion won. The company plans to issue 20.1 million new shares (32% of outstanding shares).</li>
<li>About 55% of the capital raise proceeds will be used to acquire a 30.1% stake in <a href="https://www.smartkarma.com/entities/jeio-co-ltd" target="_blank" data-smartkarma-citation="entities:36398:1" rel="noopener">Jeio (418550 KS)</a>. Remaining 45% will be used to invest in Isupetays' core business. </li>
<li>Valuations on Isupetasys are not compelling. Isupetasys is also buying Jeio which has high P/E multiples, which could further result in capital outflow on Isupetasys among some value conscious investors.</li>
</ul>


Isupetasys (007660 KS) announced a large-scale rights offering worth 550 billion won. The company plans to issue 20.1 million new shares (32% of outstanding shares).
About 55% of the capital raise proceeds will be used to acquire a 30.1% stake in Jeio (418550 KS). Remaining 45% will be used to invest in Isupetays' core business. 
Valuations on Isupetasys are not compelling. Isupetasys is also buying Jeio which has high P/E multiples, which could further result in capital outflow on Isupetasys among some value conscious investors.


Isupetasys Announces a Rights Offering of 32% of Outstanding Shares and Acquisition of Jeio

South Korea

Jeio Co., Ltd. manufactures and distributes materials inspection, measurement and analysis instruments. The Company produces secondary batteries carbon nanotube conductive materials, advanced nano materials, secondary battery materials, physicochemical equipment, reactors, and other related products. Jeio also offers plant engineering, fine chemicals, and petrochemicals products.

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Jeio (418550 KS)

KOSDAQ150 Index Rebalance: 9 Changes as Fadu Ignored Again

There are 9 changes as Fadu and Joongang AM have been kept out of the index again. Passive impact varies from 0.2-8.6x ADV. Performance has been...

Brian Freitas

KOSDAQ150 Index Rebalance Preview: Announcement Around the Corner

We highlight 11 potential changes for the index in June. Impact varies from 0.2-7.5x ADV. The forecast adds have outperformed the forecast deletes...

Brian Freitas

New Tender Trigger in Korea: Small Shareholder Collective Action Via Online Platform on T'way Air

A new sort of trigger for a public tender in Korea has emerged, driven by small shareholder collective action through an online platform focused on...

Sanghyun Park

ISU Petasys Ignores FSS: A Likely Short-Term Dip Sets up an Opportunity to Target 15% Discount

ISU Petasys is pushing forward with the rights offering, ignoring the FSS. I am expecting a short-term dip, but it will set up a great opportunity...

Sanghyun Park

Isupetasys Announces a Rights Offering of 32% of Outstanding Shares and Acquisition of Jeio

Isupetasys (007660 KS) announced a large-scale rights offering worth 550 billion won. The company plans to issue 20.1 million new shares (32% of...

Douglas Kim

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