Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>After the market close on 25 February, it was reported that LG Energy Solution plans to conduct a block deal sale of all of its stake in Liontown. </li>
<li>The expected sales price range is from AUD 1.75 and AUD 1.79, and the sale is valued at approximately AUD 419 million (approximately 430 billion won).</li>
<li>We believe this block deal sale will have a slight positive impact on LG Energy Solution and a slight negative impact on Liontown. </li>
</ul>


After the market close on 25 February, it was reported that LG Energy Solution plans to conduct a block deal sale of all of its stake in Liontown. 
The expected sales price range is from AUD 1.75 and AUD 1.79, and the sale is valued at approximately AUD 419 million (approximately 430 billion won).
We believe this block deal sale will have a slight positive impact on LG Energy Solution and a slight negative impact on Liontown. 


LG Energy Solution: Block Deal Sale of Its Stake in Liontown Resources for About 430 Billion Won

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>After a yuuge rally in the stock over the last 8 months, <a href="https://www.smartkarma.com/entities/pilbara-minerals-ltd" target="_blank" data-smartkarma-citation="entities:7460:1" rel="noopener">Pilbara Minerals (PLS AU)</a> could be added to a global index in February.</li>
<li>
<a href="https://www.smartkarma.com/entities/pilbara-minerals-ltd" target="_blank" data-smartkarma-citation="entities:7460:1" rel="noopener">Pilbara Minerals (PLS AU)</a> is also a potential upward migration in a local index a few weeks later and that will lead to more passive buying.</li>
<li>There has been increased positioning in <a href="https://www.smartkarma.com/entities/pilbara-minerals-ltd" target="_blank" data-smartkarma-citation="entities:7460:1" rel="noopener">Pilbara Minerals (PLS AU)</a>, but we also see a similar trend in its peers that do not have any upcoming passive flows.</li>
</ul>


After a yuuge rally in the stock over the last 8 months, Pilbara Minerals (PLS AU) could be added to a global index in February.

Pilbara Minerals (PLS AU) is also a potential upward migration in a local index a few weeks later and that will lead to more passive buying.
There has been increased positioning in Pilbara Minerals (PLS AU), but we also see a similar trend in its peers that do not have any upcoming passive flows.


PLS Group (PLS AU): Index Inclusion Follows Huge Move Higher

<ul>
<li>
<a href="https://www.smartkarma.com/entities/almonty-industries-inc" target="_blank" data-smartkarma-citation="entities:23864:1" rel="noopener">Almonty Industries (AII CN)</a>, <a href="https://www.smartkarma.com/entities/standard-lithium-ltd" target="_blank" data-smartkarma-citation="entities:38824:1" rel="noopener">Standard Lithium (SLI US)</a> and <a href="https://www.smartkarma.com/entities/hubei-zhenhua-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:30013:1" rel="noopener">Hubei Zhenhua Chemical Co Ltd (603067 CH)</a> will be added to the <a href="https://www.smartkarma.com/entities/vaneck-rare-earth-strategic-me" target="_blank" data-smartkarma-citation="entities:32320:1" rel="noopener">VanEck Rare Earth/Strategic Me (REMX US)</a> in December.</li>
<li>The constituent changes, float changes and capping changes result in an estimated one-way turnover of 18.2% and in a round-trip trade of US$550m.</li>
<li>There have been large creations in <a href="https://www.smartkarma.com/entities/vaneck-rare-earth-strategic-me" target="_blank" data-smartkarma-citation="entities:32320:1" rel="noopener">VanEck Rare Earth/Strategic Me (REMX US)</a> as strategic metals and rare earths stocks have surged in price over the last few months.</li>
</ul>



Almonty Industries (AII CN), Standard Lithium (SLI US) and Hubei Zhenhua Chemical Co Ltd (603067 CH) will be added to the VanEck Rare Earth/Strategic Me (REMX US) in December.
The constituent changes, float changes and capping changes result in an estimated one-way turnover of 18.2% and in a round-trip trade of US$550m.
There have been large creations in VanEck Rare Earth/Strategic Me (REMX US) as strategic metals and rare earths stocks have surged in price over the last few months.


MV Global Rare Earth/​​​​​Strategic Metals Index Rebalance: 3 Adds and Other Changes; US$550m Trade

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Nov 14th (reported today). The aggregated short interest was USD27.1bn.</li>
<li>We tabulate league tables 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 highlight short interest changes in Northern Star Resources, Aristocrat Leisure, Sonic Healthcare, Super Retail, DroneShield.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Nov 14th (reported today). The aggregated short interest was USD27.1bn.
We tabulate league tables 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 highlight short interest changes in Northern Star Resources, Aristocrat Leisure, Sonic Healthcare, Super Retail, DroneShield.


ASX Short Interest Weekly (Nov 14th): Northern Star Resources, Aristocrat Leisure, Sonic Healthcare

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Sep 26th (reported today). The aggregated short interest was USD27.4bn.</li>
<li>We tabulate league tables 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 highlight short interest changes in Washington H Soul Pattinson&amp;Co, Northern Star Resources, Telix Pharmaceuticals, Goodman, TPG Telecom.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Sep 26th (reported today). The aggregated short interest was USD27.4bn.
We tabulate league tables 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 highlight short interest changes in Washington H Soul Pattinson&amp;Co, Northern Star Resources, Telix Pharmaceuticals, Goodman, TPG Telecom.


ASX Short Interest Weekly (Sep 26th): Washington H Soul Pattinson&Co, Northern Star Resources

Australia

Liontown Resources Ltd. explores for and mines base metals.

Price Gauge
52-week Range	0.00 - 0.00
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Liontown Resources (LTR AU)

LG Energy Solution: Block Deal Sale of Its Stake in Liontown Resources for About 430 Billion Won

After the market close on 25 February, it was reported that LG Energy Solution plans to conduct a block deal sale of all of its stake in Liontown...

Douglas Kim

PLS Group (PLS AU): Index Inclusion Follows Huge Move Higher

PLS Group could be added to a global index in Feb. And then to a local index in March. Shorts have covered but are still huge compared to float....

Brian Freitas

MV Global Rare Earth/Strategic Metals Index Rebalance: 3 Adds and Other Changes; US$550m Trade

There are 3 adds for the REMX in Dec. Estimated one-way turnover is 18.2% and round-trip trade is US$550m. There have been big creations in REMX...

Brian Freitas

ASX Short Interest Weekly (Nov 14th): Northern Star Resources, Aristocrat Leisure, Sonic Healthcare

We analyzed ASX short interest report for the past week and highlight short interest changes in Northern Star Resources, Aristocrat Leisure, Sonic...

Ke Yan, CFA, FRM

ASX Short Interest Weekly (Sep 26th): Washington H Soul Pattinson&Co, Northern Star Resources

We analyzed ASX short interest report for the past week and highlight short interest changes in Washington H Soul Pattinson&Co, Northern Star...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

LG Energy Solution: Block Deal Sale of Its Stake in Liontown Resources for About 430 Billion Won

After the market close on 25 February, it was reported that LG Energy Solution plans to conduct a block deal sale of all of its stake in Liontown...

Douglas Kim

PLS Group (PLS AU): Index Inclusion Follows Huge Move Higher

PLS Group could be added to a global index in Feb. And then to a local index in March. Shorts have covered but are still huge compared to float....

Brian Freitas

MV Global Rare Earth/​​​​​Strategic Metals Index Rebalance: 3 Adds and Other Changes; US$550m Trade

There are 3 adds for the REMX in Dec. Estimated one-way turnover is 18.2% and round-trip trade is US$550m. There have been big creations in REMX...

Brian Freitas

ASX Short Interest Weekly (Nov 14th): Northern Star Resources, Aristocrat Leisure, Sonic Healthcare

We analyzed ASX short interest report for the past week and highlight short interest changes in Northern Star Resources, Aristocrat Leisure, Sonic...

Ke Yan, CFA, FRM

ASX Short Interest Weekly (Sep 26th): Washington H Soul Pattinson&Co, Northern Star Resources

We analyzed ASX short interest report for the past week and highlight short interest changes in Washington H Soul Pattinson&Co, Northern Star...

Ke Yan, CFA, FRM

MV Global Rare Earth/Strategic Metals Index Rebalance: 3 Adds and Other Changes; US$550m Trade