Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>Last week, Taihan Electric Wire announced a rights offering of 50% of its outstanding shares.  The company is expected to raise 526 billion won. </li>
<li>Taihan Electric Wire is expected to use the rights offering proceeds to mostly expand its submarine cable production.</li>
<li>With the share price falling 21% since the announcement of the rights offering last week, Taihan Electric Wire looks more attractive.</li>
</ul>


Last week, Taihan Electric Wire announced a rights offering of 50% of its outstanding shares.  The company is expected to raise 526 billion won. 
Taihan Electric Wire is expected to use the rights offering proceeds to mostly expand its submarine cable production.
With the share price falling 21% since the announcement of the rights offering last week, Taihan Electric Wire looks more attractive.


Taihan Electric Wire: Rights Offering of 50% of Outstanding Shares

<ul>
<li>LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. </li>
<li>The rights offering capital raise involves 142 million shares, which represent 39.7% of its existing outstanding shares. </li>
<li>We believe this rights offering will have a negative impact on LG Display's share price as it will significantly dilute existing shareholders. </li>
</ul>


LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. 
The rights offering capital raise involves 142 million shares, which represent 39.7% of its existing outstanding shares. 
We believe this rights offering will have a negative impact on LG Display's share price as it will significantly dilute existing shareholders. 


LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX Stocks as of Dec 8th which has an aggregated short interest worth USD10.8bn.</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 have highlighted KRX short interest weekly changes in Naver.</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Dec 8th which has an aggregated short interest worth USD10.8bn.
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 have highlighted KRX short interest weekly changes in Naver.


KRX Short Interest Weekly (Dec 8th): Naver

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.

<ul>
<li>Given Korea's blanket ban on short-selling, we should concentrate on the likelihood of these ADRs being significantly discounted compared to their underlying shares.</li>
<li>It should persist for an extended period, highlighting the importance of continuously monitoring ADR spreads over the next 2-3 months to seize the opportune entry timing.</li>
<li>Since all these carry single-stock futures, a flexible setup targeting this spread can be designed, ideally incorporating currency hedges.</li>
</ul>


Given Korea's blanket ban on short-selling, we should concentrate on the likelihood of these ADRs being significantly discounted compared to their underlying shares.
It should persist for an extended period, highlighting the importance of continuously monitoring ADR spreads over the next 2-3 months to seize the opportune entry timing.
Since all these carry single-stock futures, a flexible setup targeting this spread can be designed, ideally incorporating currency hedges.


Trading Opportunities Targeting Potential ADR Discount Increases from Korea's Short-Selling Ban

Equity Bottom-Up

<ul>
<li>In this insight, we discuss the recent Korean stock portfolio allocation changes by the NPS.</li>
<li>The data suggests that NPS has been increasing its holdings into more defensive sectors such as insurance, convenience stores, and industrials. </li>
<li>On the other hand, it has been decreasing capital allocation in consumer discretionary related stocks.</li>
</ul>


In this insight, we discuss the recent Korean stock portfolio allocation changes by the NPS.
The data suggests that NPS has been increasing its holdings into more defensive sectors such as insurance, convenience stores, and industrials. 
On the other hand, it has been decreasing capital allocation in consumer discretionary related stocks.


NPS: Increasing Capital Allocation to More Defensive Stocks in Korea

South Korea

LG Display Company Ltd. develops and manufactures digital display products. The Company's products include thin film transistor-liquid crystal displays (TFT-LCD) for notebook and desktop computer monitors, TVs, and mobile phones. LG Display provides its products to overseas and domestic markets.

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LG Display (ADR) (LPL US)

Taihan Electric Wire: Rights Offering of 50% of Outstanding Shares

With the share price falling 21% since the announcement of the rights offering last week, Taihan Electric Wire looks more attractive.

Douglas Kim

LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. We believe this will have a negative...

Douglas Kim

KRX Short Interest Weekly (Dec 8th): Naver

We analyzed the KRX short interest report for the past week and we highlighted weekly KRX short interest changes in Naver.

Ke Yan, CFA, FRM

Trading Opportunities Targeting Potential ADR Discount Increases from Korea's Short-Selling Ban

This post explores trading opportunities targeting potential ADR discount increases resulting from Korea's blanket ban on short selling.

Sanghyun Park

NPS: Increasing Capital Allocation to More Defensive Stocks in Korea

In this insight, we discuss the recent Korean stock portfolio allocation changes by the NPS. The data suggests that NPS has been increasing its...

Douglas Kim

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