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>KOSPI 200 rebalancing results are out - 7 Additions: 4 (regular) + 2 (Fast Entry) + 1 (split) &amp; 7 Deletions: 6 (regular) + 1 (Fast Entry) 
</li>
<li>The passive impact of all additions is pretty significant. In particular, Meritiz, SL, and Kakao Pay are relatively larger.</li>
<li>For the deletes, it is worth considering approaching these stocks as an equal-weighted basket. Since their share prices have not been significantly corrected recently.</li>
</ul>


KOSPI 200 rebalancing results are out - 7 Additions: 4 (regular) + 2 (Fast Entry) + 1 (split) &amp; 7 Deletions: 6 (regular) + 1 (Fast Entry) 

The passive impact of all additions is pretty significant. In particular, Meritiz, SL, and Kakao Pay are relatively larger.
For the deletes, it is worth considering approaching these stocks as an equal-weighted basket. Since their share prices have not been significantly corrected recently.


7 Adds & 7 Deletes in KOSPI 200 Rebalancing: Passive Impact & Trade Setups

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<ul>
<li>There will be 6 additions and 7 deletions for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the December rebalance that will be implemented on 9 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/hyundai-heavy-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:33808:1" rel="noopener">Hyundai Heavy Industries (329180 KS)</a> and <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> are Fast Entry inclusions to the index, while <a href="https://www.smartkarma.com/entities/innocean-worldwide-inc" target="_blank" data-smartkarma-citation="entities:26925:1" rel="noopener">Innocean Worldwide (214320 KS)</a> is a deletion on liquidity.</li>
<li>Depending on the float used by KRX, there could be a sharp move higher on <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> as passive trackers could buy up to 15% of real float.</li>
</ul>


There will be 6 additions and 7 deletions for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the December rebalance that will be implemented on 9 December.

Hyundai Heavy Industries (329180 KS) and Kakao Pay (377300 KS) are Fast Entry inclusions to the index, while Innocean Worldwide (214320 KS) is a deletion on liquidity.
Depending on the float used by KRX, there could be a sharp move higher on Kakao Pay (377300 KS) as passive trackers could buy up to 15% of real float.


KOSPI200 Index Rebalance: Mostly Expected, Couple of Surprises

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

SK IE Technology   / Equity Capital Markets

<ul>
<li>SK IE Technology’s (SKIE) shareholder aims to raise around US$430m via selling part of its shareholding.</li>
<li>The deal comes close to the six-month lock-up expiry post listing and hence, there is a high likelihood that the selldown might have been expected.</li>
<li>In this note, we will run the deal through our ECM framework.</li>
</ul>


SK IE Technology’s (SKIE) shareholder aims to raise around US$430m via selling part of its shareholding.
The deal comes close to the six-month lock-up expiry post listing and hence, there is a high likelihood that the selldown might have been expected.
In this note, we will run the deal through our ECM framework.


SK IE Technology Placement - Is Probably Expected

<ul>
<li>The view that Kakao Pay may fail the KOSPI 200 Fast Entry is seen as a bigger reason for a further price correction lately. </li>
<li>The question is whether the minimum float rate (10%) condition is satisfied. And the key here is how the KRX handles the stake held by Alipay.</li>
<li>Despite the concerns, the KRX will treat Alipay as float if it applies the same practice as previous cases (Netmarble and HYBE).</li>
</ul>


The view that Kakao Pay may fail the KOSPI 200 Fast Entry is seen as a bigger reason for a further price correction lately. 
The question is whether the minimum float rate (10%) condition is satisfied. And the key here is how the KRX handles the stake held by Alipay.
Despite the concerns, the KRX will treat Alipay as float if it applies the same practice as previous cases (Netmarble and HYBE).


Momentum Trading Opportunity to Take Advantage of Kakao Pay's KOSPI 200 Fast Entry Failure Concern

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<div class="content-highlight">
In this insight, we discuss the end of the one-month lock-up period for <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> and where the bottom level prices could be for this stock.
There are 1.09 million shares of Kakao Pay that are under the lockup period (0.8% of outstanding shares) after one month. However, among the overseas institutions, 45% of the shares that are locked up is for the one month period (0.55 million shares or 0.4% of the outstanding shares). As investors look forward to this event, we believe that there could be more selling on this stock in the coming days. 
In our view, Kakao Pay still has ways to go before it reaches its bottom in share price. Over the next 6-12 months, we believe that Kakao Pay's share price could decline to our base/high case which is between 81,829 won and 103,366 won per share. At the current price of 153,500 won, this would represent a further downside risk of 33% to 47%. 
</div>


In this insight, we discuss the end of the one-month lock-up period for Kakao Pay (377300 KS) and where the bottom level prices could be for this stock.
There are 1.09 million shares of Kakao Pay that are under the lockup period (0.8% of outstanding shares) after one month. However, among the overseas institutions, 45% of the shares that are locked up is for the one month period (0.55 million shares or 0.4% of the outstanding shares). As investors look forward to this event, we believe that there could be more selling on this stock in the coming days. 
In our view, Kakao Pay still has ways to go before it reaches its bottom in share price. Over the next 6-12 months, we believe that Kakao Pay's share price could decline to our base/high case which is between 81,829 won and 103,366 won per share. At the current price of 153,500 won, this would represent a further downside risk of 33% to 47%. 


Kakao Pay: End of the 1 Month Lock-Up Period & Where Is The Bottom for Share Price?

South Korea

Kakao Pay Corp. operates financial businesses. The Company provides online payment, currency encryption, and other services. Kakao Pay conducts businesses in South Korea.

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Kakaopay (377300 KS)

7 Adds & 7 Deletes in KOSPI 200 Rebalancing: Passive Impact & Trade Setups

The KRX officially unveiled the results of the December rebalancing for KOSPI 200: 7 adds & 7 deletes. This post has the complete list as well as...

Sanghyun Park

KOSPI200 Index Rebalance: Mostly Expected, Couple of Surprises

There are 6 adds and 7 deletes for the KOSPI200 at the Dec rebalance. Most of the changes were expected, but there are a couple of surprises. Kakao...

Brian Freitas

SK IE Technology Placement - Is Probably Expected

SK IE Technology’s (SKIE) shareholder aims to raise around US$430m via selling part of its shareholding. The deal is probably expected.

Sumeet Singh

Momentum Trading Opportunity to Take Advantage of Kakao Pay's KOSPI 200 Fast Entry Failure Concern

It is unlikely that Kakao Pay will fail the KOSPI 200 Fast Entry because it does not meet the 10% minimum float rate. So, we may consider setting...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

7 Adds & 7 Deletes in KOSPI 200 Rebalancing: Passive Impact & Trade Setups

The KRX officially unveiled the results of the December rebalancing for KOSPI 200: 7 adds & 7 deletes. This post has the complete list as well as...

Sanghyun Park

KOSPI200 Index Rebalance: Mostly Expected, Couple of Surprises

There are 6 adds and 7 deletes for the KOSPI200 at the Dec rebalance. Most of the changes were expected, but there are a couple of surprises. Kakao...

Brian Freitas

SK IE Technology Placement - Is Probably Expected

SK IE Technology’s (SKIE) shareholder aims to raise around US$430m via selling part of its shareholding. The deal is probably expected.

Sumeet Singh

Momentum Trading Opportunity to Take Advantage of Kakao Pay's KOSPI 200 Fast Entry Failure Concern

It is unlikely that Kakao Pay will fail the KOSPI 200 Fast Entry because it does not meet the 10% minimum float rate. So, we may consider setting...

Sanghyun Park

Kakao Pay: End of the 1 Month Lock-Up Period & Where Is The Bottom for Share Price?

In this insight, we discuss the end of the one-month lock-up period for Kakao Pay (377300 KS) and where the bottom level prices could be for this...

Douglas Kim