Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>LS Materials completed its 15-day review but hasn't been announced for fast entry, likely due to KRX's Korean document disclosing the effective date starting February 1, 2024.</li>
<li>LS Materials will be in the June rebalancing, having not met the 6-month listing requirement for the June review, thus subject to the special entry rule.</li>
<li>Hyundai Hyms, surging 300% from IPO, ranks 58th by market cap, poised for KOSDAQ 150 entry. If successful, Unitest will be removed.</li>
</ul>


LS Materials completed its 15-day review but hasn't been announced for fast entry, likely due to KRX's Korean document disclosing the effective date starting February 1, 2024.
LS Materials will be in the June rebalancing, having not met the 6-month listing requirement for the June review, thus subject to the special entry rule.
Hyundai Hyms, surging 300% from IPO, ranks 58th by market cap, poised for KOSDAQ 150 entry. If successful, Unitest will be removed.


Clarifying KOSDAQ 150 Fast Entry Confusions: LS Materials & Hyundai Hyms

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>With over 40% of the review period complete, there could be 15 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> at the June rebalance.</li>
<li>There could be two changes before that if <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F Co Ltd (066970 KS)</a> and <a href="https://www.smartkarma.com/entities/hlb-inc" target="_blank" data-smartkarma-citation="entities:16969:1" rel="noopener">HLB Inc (028300 KS)</a> complete their transfer from the KOSDAQ market to the KOSPI market.</li>
<li>The adds have outperformed the deletes and 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> since the start of the review period. The ban on short selling could lead to another leg up.</li>
</ul>


With over 40% of the review period complete, there could be 15 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance.
There could be two changes before that if L&amp;F Co Ltd (066970 KS) and HLB Inc (028300 KS) complete their transfer from the KOSDAQ market to the KOSPI market.
The adds have outperformed the deletes and the KOSDAQ 150 Index since the start of the review period. The ban on short selling could lead to another leg up.


KOSDAQ150 Index Rebalance Preview: Potential Adds Soaring; Short Sell Ban Not Helping

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>LS Materials IPO price has been determined at 6,000 won per share, which is higher than the high end of the IPO price range (5,500 won). </li>
<li>A total 2,025 institutional investors participated in this IPO book building. The demand ratio was 396.8 to 1. The IPO offering amount is 87.8 billion won. </li>
<li>We believe that its share price is likely to trade higher than the high end of our valuation range (7,953 won per share) post IPO. </li>
</ul>


LS Materials IPO price has been determined at 6,000 won per share, which is higher than the high end of the IPO price range (5,500 won). 
A total 2,025 institutional investors participated in this IPO book building. The demand ratio was 396.8 to 1. The IPO offering amount is 87.8 billion won. 
We believe that its share price is likely to trade higher than the high end of our valuation range (7,953 won per share) post IPO. 


LS Materials IPO Bookbuilding Results Analysis

<ul>
<li>Our base case valuation of LS Materials IPO is target price of 6,628 won per share, which is 21% higher than the high end of the IPO price range.</li>
<li>We estimate LS Materials to generate sales of 155.5 billion won (down 4% YoY) and 197.2 billion won (up 26.8% YoY) in 2024. </li>
<li>LS Materials is one of the largest players globally in the large-size ultracapacitors, which stabilize power supply and are used to replace and supplement primary batteries and lithium-ion batteries.</li>
</ul>


Our base case valuation of LS Materials IPO is target price of 6,628 won per share, which is 21% higher than the high end of the IPO price range.
We estimate LS Materials to generate sales of 155.5 billion won (down 4% YoY) and 197.2 billion won (up 26.8% YoY) in 2024. 
LS Materials is one of the largest players globally in the large-size ultracapacitors, which stabilize power supply and are used to replace and supplement primary batteries and lithium-ion batteries.


<ul>
<li>LS Materials is getting ready to complete its IPO in Korea in late November. The IPO price range is from 4,400 won to 5,500 won per share. </li>
<li>According to the bankers' valuation, the expected market cap after the IPO is from 298 billion won to 372 billion won. </li>
<li>LS Materials is one of the largest players globally in the large-size ultracapacitors, which stabilize power supply and are used to replace and supplement primary batteries and lithium-ion batteries.</li>
</ul>


LS Materials is getting ready to complete its IPO in Korea in late November. The IPO price range is from 4,400 won to 5,500 won per share. 
According to the bankers' valuation, the expected market cap after the IPO is from 298 billion won to 372 billion won. 
LS Materials is one of the largest players globally in the large-size ultracapacitors, which stabilize power supply and are used to replace and supplement primary batteries and lithium-ion batteries.


South Korea

LS materials.,Ltd. operates electronic equipment production businesses. The Company produces capacitors and other products. LS materials conducts businesses across worldwide.

LS Materials (417200 KS)

Clarifying KOSDAQ 150 Fast Entry Confusions: LS Materials & Hyundai Hyms

This post investigates the complexities of the newly introduced KOSDAQ 150 fast entry rules, addressing the ambiguity surrounding recent IPOs, LS...

Sanghyun Park

KOSDAQ150 Index Rebalance Preview: Potential Adds Soaring; Short Sell Ban Not Helping

There could be 15 changes for the KOSDAQ150 Index in June. The potential adds have outperformed the deletes and the index since the start of the...

Brian Freitas

LS Materials IPO Bookbuilding Results Analysis

LS Materials reported excellent bookbuilding results. We believe that its share price is likely to trade higher than the high end of our valuation...

Douglas Kim

LS Materials IPO Valuation Analysis

Our base case valuation of LS Materials IPO is 6,628 won per share, 21% higher than the high end of the IPO price range. LS Materials is one of the...

Douglas Kim

LS Materials IPO Preview

LS Materials, a major player in large-size ultracapacitors, is set to complete its IPO in Korea with an expected market cap of 298 billion won to...

Douglas Kim

Clarifying KOSDAQ 150 Fast Entry Confusions: LS Materials & Hyundai Hyms

This post investigates the complexities of the newly introduced KOSDAQ 150 fast entry rules, addressing the ambiguity surrounding recent IPOs, LS...

Sanghyun Park

KOSDAQ150 Index Rebalance Preview: Potential Adds Soaring; Short Sell Ban Not Helping

There could be 15 changes for the KOSDAQ150 Index in June. The potential adds have outperformed the deletes and the index since the start of the...

Brian Freitas

LS Materials IPO Bookbuilding Results Analysis

LS Materials reported excellent bookbuilding results. We believe that its share price is likely to trade higher than the high end of our valuation...

Douglas Kim

LS Materials IPO Valuation Analysis

Our base case valuation of LS Materials IPO is 6,628 won per share, 21% higher than the high end of the IPO price range. LS Materials is one of the...

Douglas Kim

LS Materials IPO Preview

​LS Materials, a major player in large-size ultracapacitors, is set to complete its IPO in Korea with an expected market cap of 298 billion won to...

Douglas Kim

LS Materials, a major player in large-size ultracapacitors, is set to complete its IPO in Korea with an expected market cap of 298 billion won to...