Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

LS Marine Solution / Equity Capital Markets

<ul>
<li>After the market close on 26 May, LS Marine Solution (060370 KS) announced that it plans to conduct a capital raise worth 278.3 billion won.</li>
<li>LS Marine Solution plans to issue 19.57 million new shares in this capital raise, which represents 60% of its outstanding shares. </li>
<li>Despite the company's strong sales and profit growth, LS Marine Solution's valuation multiples may be a bit too aggressive, especially with the major rights offering that will dilute existing shareholders. </li>
</ul>


After the market close on 26 May, LS Marine Solution (060370 KS) announced that it plans to conduct a capital raise worth 278.3 billion won.
LS Marine Solution plans to issue 19.57 million new shares in this capital raise, which represents 60% of its outstanding shares. 
Despite the company's strong sales and profit growth, LS Marine Solution's valuation multiples may be a bit too aggressive, especially with the major rights offering that will dilute existing shareholders. 


LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won

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>This raise stands out with a near-60% issuance ratio—fat rights per share make pre-positioning before ex-date a compelling trade with solid pickup potential.</li>
<li>LS Cable holds 66.75% and has been steadily upping its stake—likely all-in on this raise, which adds serious anchor support and puts a strong floor under the rights.</li>
<li>Skip chasing rights—this setup favors buying shares pre–ex-rights, where the embedded rights value likely beats the ex-day drop, making it a clean trade.</li>
</ul>


This raise stands out with a near-60% issuance ratio—fat rights per share make pre-positioning before ex-date a compelling trade with solid pickup potential.
LS Cable holds 66.75% and has been steadily upping its stake—likely all-in on this raise, which adds serious anchor support and puts a strong floor under the rights.
Skip chasing rights—this setup favors buying shares pre–ex-rights, where the embedded rights value likely beats the ex-day drop, making it a clean trade.


LS Marine Solution’s Rights Deal Is Serving up a Pretty Rare Arbitrage Hunting Ground

Equity Bottom-Up

<ul>
<li>On 6 March, LS Group Chairman Koo Ja-Eun publicly stated <em>"If you think duplicate listings are a problem, then just don’t buy the stocks after the listing.” </em>
</li>
<li>Chairman Koo's comment was not in the best interest of the major LS Group companies including LS Electric and LS Corp that are publicly traded.</li>
<li>LS Group is preparing to list at least five unlisted affiliates including LS E-Link, Essex Solutions, LS Cable, LS MnM, and KOC Electric  in the next 1-3 years. </li>
</ul>


On 6 March, LS Group Chairman Koo Ja-Eun publicly stated "If you think duplicate listings are a problem, then just don’t buy the stocks after the listing.” 

Chairman Koo's comment was not in the best interest of the major LS Group companies including LS Electric and LS Corp that are publicly traded.
LS Group is preparing to list at least five unlisted affiliates including LS E-Link, Essex Solutions, LS Cable, LS MnM, and KOC Electric  in the next 1-3 years. 


LS Corp: Chairman's Words Have Big Impact on Share Price

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

<ul>
<li>Eight months after shareholders approved the transfer from the KOSDAQ to the KOSPI market, <a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM (247540 KS)</a> has submitted the application for section transfer to the KRX.</li>
<li>Given historical precedent, the transfer could take place in February. <a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM</a>'s deletion will mean an inclusion to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ150 Index</a> to maintain the number of index constituents at 150.</li>
<li>
<a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM (247540 KS)</a> will be deleted from the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index</a> leading to passive selling and some short covering. Then will come the inclusion to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 Index</a>.</li>
</ul>


Eight months after shareholders approved the transfer from the KOSDAQ to the KOSPI market, Ecopro BM (247540 KS) has submitted the application for section transfer to the KRX.
Given historical precedent, the transfer could take place in February. Ecopro BM's deletion will mean an inclusion to the KOSDAQ150 Index to maintain the number of index constituents at 150.

Ecopro BM (247540 KS) will be deleted from the KOSDAQ 150 Index leading to passive selling and some short covering. Then will come the inclusion to the KOSPI 200 Index.


Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears

<ul>
<li>Ecopro BM’s still hot trading volume might minimize passive impact. The real action is who replaces it in KOSDAQ 150 and which KOSPI 200 stock gets the boot.</li>
<li>LS Marine Solution joins KOSDAQ 150, while Green Cross Holdings gets the boot due to the lowest average daily market cap from May 1 to October 31.</li>
<li>KRX fast-tracks approvals for financially strong companies in 20 trading days. Ecopro BM likely qualifies, meaning approval could come before Christmas—ideal timing for entry.</li>
</ul>


Ecopro BM’s still hot trading volume might minimize passive impact. The real action is who replaces it in KOSDAQ 150 and which KOSPI 200 stock gets the boot.
LS Marine Solution joins KOSDAQ 150, while Green Cross Holdings gets the boot due to the lowest average daily market cap from May 1 to October 31.
KRX fast-tracks approvals for financially strong companies in 20 trading days. Ecopro BM likely qualifies, meaning approval could come before Christmas—ideal timing for entry.


Ecopro BM’s KOSPI Move: Trade LS Marine Solution & Green Cross for the Real Play

South Korea

LS Marine Solution Co., Ltd. operates as a submarine communication cables and offshore plants construction and maintenance company. The Company provides submarine fiber optic cable installation, submarine power cable installation, and other related services. LS Marine Solution also offers offshore energy sources development and derrick assembly services.

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LS Marine Solution (060370 KS)

LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won

Despite the company's strong sales and profit growth, LS Marine Solution's valuation multiples may be a bit too aggressive, especially with the...

Douglas Kim

LS Marine Solution’s Rights Deal Is Serving up a Pretty Rare Arbitrage Hunting Ground

This post covers LS Marine Solution’s rights deal, highlighting it as a rare and attractive setup for arb hunters looking to capture potential...

Sanghyun Park

Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears

EcoproBM's section transfer application is with the KRX; approval could come in Jan/Feb. LS Marine could be added to the KOSDAQ150 Index while...

Brian Freitas

Ecopro BM’s KOSPI Move: Trade LS Marine Solution & Green Cross for the Real Play

This post breaks down the passive flow actions for Ecopro BM’s KOSPI move: Trade LS Marine Solution and Green Cross for the real play.

Sanghyun Park

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