Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p>On 6 November after the market close, POSCO Chemical (003670 KS) announced a major rights offering worth 1 trillion won, representing nearly 20% of its market cap (5 trillion won). POSCO Chemical's share price is down nearly 2.5% today. With the additional 1 trillion won from the proceeds of the rights offering, POSCO Chemical will use it to aggressively invest in the rechargeable battery materials for electric vehicles.</p><p>There is likely to be a healthy demand for the rights offering issue among the general investors, given that this is a relatively sizeable deal with enough upside potential, given POSCO Chemical's increasing competitiveness in the rechargeable battery materials sector globally. </p>

On 6 November after the market close, POSCO Chemical (003670 KS) announced a major rights offering worth 1 trillion won, representing nearly 20% of its market cap (5 trillion won). POSCO Chemical's share price is down nearly 2.5% today. With the additional 1 trillion won from the proceeds of the rights offering, POSCO Chemical will use it to aggressively invest in the rechargeable battery materials for electric vehicles.There is likely to be a healthy demand for the rights offering issue among the general investors, given that this is a relatively sizeable deal with enough upside potential, given POSCO Chemical's increasing competitiveness in the rechargeable battery materials sector globally. 

POSCO Chemical (1 Trillion Won Rights Offering - 20% of Market Cap)

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

<p>POSCO Chemical announced a massive rights offering.</p><p>The total offering is 16.5M shares for ₩1T. </p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Issuer"}'>Issuer</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Posco Chemical Co Ltd"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Posco Chemical Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"003670"}' data-sheets-formula='="003670"'>003670</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target"}'>Target</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Pubic offering of forfeited shares after offering to stockholders"}'>A public offering of forfeited shares after offering to stockholders</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Transferability"}'>Transferability</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Renounceable"}'>Renounceable</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Volume"}'>Volume</td>
<td style="text-align: left;" data-sheets-value='{"1":3,"3":16475000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>16,475,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Bonus issue volume"}'>Bonus issue volume</td>
<td style="text-align: left;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Preliminary price"}'>Preliminary price</td>
<td style="text-align: left;" data-sheets-value='{"1":3,"3":60700}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩60,700</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Preliminary value"}'>Preliminary value</td>
<td style="text-align: left;" data-sheets-value='{"1":3,"3":1000032500000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-3]C[0]*R[-1]C[0]">₩1,000,032,500,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Oversubscription privilege"}'>Oversubscription privilege</td>
<td style="text-align: left;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>20.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Banker"}'>Banker</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"KIS, NH, &amp; KB"}'>KIS, NH, &amp; KB</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Underwriting type"}'>- Underwriting type</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Standby"}'>Standby</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>The offering carries a 27% capital increase with a 21.3% dilution. The ESOP takes 11.8%, putting the shareholder per-share allocation at 0.238.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Allocation"}'>Allocation</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Common"}'>Common</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60988220}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>60,988,220</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Pref (incl. RCPS &amp; CPS)"}'>Pref (incl. RCPS &amp; CPS)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shares"}'>Total shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60988220}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-2]C[0]+R[-1]C[0]">60,988,220</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Treasury shares"}'>Treasury shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shares ex treasury shares"}'>Total shares ex treasury shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60988220}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]">60,988,220</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offer volume"}'>Offer volume</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16475000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[1]C[0]+R[2]C[0]">16,475,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Common"}'>- Common</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16475000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-16]C[0]">16,475,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Pref"}'>- Pref</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Per share allocation"}'>Per-share allocation</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.23825830627619562}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula="=R[15]C[0]/R[-4]C[0]">0.2382583</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase"}'>Capital increase</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.27013413409999504}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-4]C[0]/R[-7]C[0]">27.01%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Dilution"}'>Dilution</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.212681579722609}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-5]C[0]/(R[-8]C[0]+R[-5]C[0])">21.27%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shares after rights offer"}'>Total shares after rights offer</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":77463220}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[1]C[0]+R[2]C[0]">77,463,220</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Common"}'>- Common</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":77463220}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]+R[-7]C[0]">77,463,220</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Pref"}'>- Pref</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]">0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Bonus issue"}'>Bonus issue</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[1]C[0]+R[2]C[0]">0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Common"}'>- Common</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Pref"}'>- Pref</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Per share allocation"}'>Per-share allocation</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula="=R[-3]C[0]/(R[-6]C[0]-R[-14]C[0])">0.0000000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shares after bonus issue"}'>Total shares after bonus issue</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":77463220}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[1]C[0]+R[2]C[0]">77,463,220</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Common"}'>- Common</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":77463220}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-7]C[0]+R[-4]C[0]">77,463,220</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Pref"}'>- Pref</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-7]C[0]+R[-4]C[0]">0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ESOP allocation"}'>ESOP allocation</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1944050}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,944,050</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - %"}'>- %</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.118}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-17]C[0]">11.80%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stockholder allocation"}'>Stockholder allocation</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14530950}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-18]C[0]-R[-2]C[0]">14,530,950</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - %"}'>- %</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.882}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-19]C[0]">88.20%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>December 8 is the ex-rights, giving 1st-round pricing on December 4. You can trade subscription rights on December 28~January 5, shortly followed by the final pricing on January 8.</p><p>The subscription falls on January 13, followed by the listing on February 3 next year.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"BOD meeting"}'>BOD meeting</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44141}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2020. 11. 6</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Preliminary pricing"}'>Preliminary pricing</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44169}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2020. 12. 4</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Ex-rights date"}'>Ex-rights date</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44173}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2020. 12. 8</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Record date"}'>Record date</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44174}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2020. 12. 9</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Subscription rights trade beginning"}'>Subscription rights trade beginning</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44193}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2020. 12. 28</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Subscription rights trade ending"}'>Subscription rights trade ending</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44201}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 1. 5</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Final pricing"}'>Final pricing</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44204}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 1. 8</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Stockholder subscription"}'>Stockholder subscription</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44209}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 1. 13</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Public subscription"}'>Public subscription</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44214}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 1. 18</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44217}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 1. 21</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Listing"}'>Listing</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44230}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 2. 3</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Record date for bonus shares"}'>Record date - bonus shares</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":2,"2":"N/A"}'>N/A</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Listing - bonus shares"}'>Listing - bonus shares</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":2,"2":"N/A"}'>N/A</td>
</tr>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>Pricing is nothing unusual at a 20% discount.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="400">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Pricing"}'>Pricing</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1st round"}'>1st round</td>
<td data-sheets-value='{"1":2,"2":"RP × (1 - 20%) / [1 + (27.01% × 20%)]"}' data-sheets-formula='="RP × (1 - "&amp;(R[11]C[0]*100&amp;"%")&amp;") / [1 + ("&amp;(R[12]C[0]*100&amp;"%"&amp;" × "&amp;(R[11]C[0]*100&amp;"%"&amp;")]"))'>RP × (1 - 20%) / [1 + (27.01% × 20%)]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td data-sheets-value='{"1":2,"2":"Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]"}'><strong>Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44169}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[41]C[0]">2020. 12. 4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ex-rights base price"}'>Ex-rights base price</td>
<td data-sheets-value='{"1":2,"2":"[RP + (1st × 27.01%)] / (1 + 27.01%)"}' data-sheets-formula='="[RP + (1st × "&amp;R[9]C[0]*100&amp;"%"&amp;")] / (1 + "&amp;R[9]C[0]*100&amp;"%"&amp;")"'>[RP + (1st × 27.01%)] / (1 + 27.01%)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td data-sheets-value='{"1":2,"2":"Previous close"}'>Previous close</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44173}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[39]C[0]">2020. 12. 8</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2nd round"}'>2nd round</td>
<td data-sheets-value='{"1":2,"2":"RP × (1 - 20%)"}' data-sheets-formula='="RP × (1 - "&amp;(R[5]C[0]*100&amp;"%")&amp;")"'>RP × (1 - 20%)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td data-sheets-value='{"1":2,"2":"Min [Close, Avg (Close, 1W VWAP)]"}'><strong>Min [Close, Avg (Close, 1W VWAP)]</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44204}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[40]C[0]">2021. 1. 8</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final"}'>Final</td>
<td data-sheets-value='{"1":2,"2":"Max [Min (1st, 2nd), 3D VWAP × 60%]"}'>Max [Min (1st, 2nd), 3D VWAP × 60%]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44204}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[38]C[0]">2021. 1. 8</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount rate"}'>Discount rate</td>
<td data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]'>20.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase rate"}'>Capital increase rate</td>
<td data-sheets-value='{"1":3,"3":0.2701}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=LEFT(Terms!R[11]C[0],6)*100/100">27.01%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

POSCO Chemical announced a massive rights offering.The total offering is 16.5M shares for ₩1T. 





Overview

Issuer
Posco Chemical Co Ltd


Ticker
003670


Target
A public offering of forfeited shares after offering to stockholders


Transferability
Renounceable


Volume
16,475,000


Bonus issue volume
0


Preliminary price
₩60,700


Preliminary value
₩1,000,032,500,000


Oversubscription privilege
20.00%


Banker
KIS, NH, &amp; KB


- Underwriting type
Standby

Source: DART

The offering carries a 27% capital increase with a 21.3% dilution. The ESOP takes 11.8%, putting the shareholder per-share allocation at 0.238.





Allocation

Common
60,988,220


Pref (incl. RCPS &amp; CPS)
0


Total shares
60,988,220


Treasury shares
0


Total shares ex treasury shares
60,988,220


Offer volume
16,475,000


- Common
16,475,000


- Pref
0


Per-share allocation
0.2382583


Capital increase
27.01%


Dilution
21.27%


Total shares after rights offer
77,463,220


- Common
77,463,220


- Pref
0


Bonus issue
0


- Common
0


- Pref
0


Per-share allocation
0.0000000


Total shares after bonus issue
77,463,220


- Common
77,463,220


- Pref
0


ESOP allocation
1,944,050


- %
11.80%


Stockholder allocation
14,530,950


- %
88.20%

Source: DART

December 8 is the ex-rights, giving 1st-round pricing on December 4. You can trade subscription rights on December 28~January 5, shortly followed by the final pricing on January 8.The subscription falls on January 13, followed by the listing on February 3 next year.





Timetable

BOD meeting
2020. 11. 6


Preliminary pricing
2020. 12. 4


Ex-rights date
2020. 12. 8


Record date
2020. 12. 9


Subscription rights trade beginning
2020. 12. 28


Subscription rights trade ending
2021. 1. 5


Final pricing
2021. 1. 8


Stockholder subscription
2021. 1. 13


Public subscription
2021. 1. 18


Payment
2021. 1. 21


Listing
2021. 2. 3


Record date - bonus shares
N/A


Listing - bonus shares
N/A

Source: DART

Pricing is nothing unusual at a 20% discount.





Pricing

1st round
RP × (1 - 20%) / [1 + (27.01% × 20%)]


- Reference price (RP)
Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]


- Reference date
2020. 12. 4


Ex-rights base price
[RP + (1st × 27.01%)] / (1 + 27.01%)


- Reference price (RP)
Previous close


- Reference date
2020. 12. 8


2nd round
RP × (1 - 20%)


- Reference price (RP)
Min [Close, Avg (Close, 1W VWAP)]


- Reference date
2021. 1. 8


Final
Max [Min (1st, 2nd), 3D VWAP × 60%]


- Reference date
2021. 1. 8


Discount rate
20.00%


Capital increase rate
27.01%

Source: DART



POSCO Chemical Rights Offer: Terms & Trade Approach

Cross Asset Strategy

<div class="content-highlight"><p><strong>It has been reported in the past few days that <a href="http://www.koreaninvestors.com/?p=12175" target="_blank" rel="noopener">NPS</a> is likely to put a greater emphasis on ESG (environmental, social, &amp; governance) based investing for Korean stocks and bonds starting 2021. </strong>NPS has currently given a mandate to a company to help NPS to apply ESG based investment system. The ESG evaluations are expected to aid NPS to actively exercise shareholder rights and also to carry out negative screening of stocks.</p></div><h3>Implications of NPS Incorporating More ESG Criteria on Domestic Investments (Bonds &amp; Stocks)</h3><ul>
<li>Negative Impact on VICE industries </li>
<li>Positive Impact on Renewable Energy Industries</li>
<li>Negative Impact on Coal &amp; Oil Industries</li>
<li>Greater Representation of Women in Senior Management Team/BOD</li>
</ul>

It has been reported in the past few days that NPS is likely to put a greater emphasis on ESG (environmental, social, &amp; governance) based investing for Korean stocks and bonds starting 2021. NPS has currently given a mandate to a company to help NPS to apply ESG based investment system. The ESG evaluations are expected to aid NPS to actively exercise shareholder rights and also to carry out negative screening of stocks.Implications of NPS Incorporating More ESG Criteria on Domestic Investments (Bonds &amp; Stocks)
Negative Impact on VICE industries 
Positive Impact on Renewable Energy Industries
Negative Impact on Coal &amp; Oil Industries
Greater Representation of Women in Senior Management Team/BOD


NPS - Greater Emphasis of ESG Based Investing for Korean Stocks & Bonds Starting 2021

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>For now we view the recent pullback as a countertrend move that helped correct the extended and overbought conditions we noted over the past two weeks. Overhead resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our bullish outlook remains appropriate.  In today's report we highlight attractive charts in both defensive and cyclical Sectors. On the semi-defensive side, Sectors covered include <strong>Health Care </strong>and <strong>Services</strong>. On the cyclical side, Sectors covered include <strong>Energy, Financials, Materials, and Transportation</strong></p>

For now we view the recent pullback as a countertrend move that helped correct the extended and overbought conditions we noted over the past two weeks. Overhead resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our bullish outlook remains appropriate.  In today's report we highlight attractive charts in both defensive and cyclical Sectors. On the semi-defensive side, Sectors covered include Health Care and Services. On the cyclical side, Sectors covered include Energy, Financials, Materials, and Transportation

Global Equity Strategy: Short-Term Bullish Trends Clash With Longer-Term Resistance

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The KRX announced the list of inclusions and exclusions to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.</p><p>There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.</p><p>The inclusions and exclusions are tabulated here.</p><table class="table table-striped">
<colgroup><col span="4"></colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 96pt;" colspan="2">INCLUSIONS</td>
<td style="text-align: center; width: 96pt;" colspan="2">EXCLUSIONS</td>
</tr>
<tr>
<td>003670.KS</td>
<td>Posco Chemical Co Ltd</td>
<td>001520.KS</td>
<td>Tongyang Inc</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F Co Ltd</td>
<td>002960.KS</td>
<td>Hankook Shell Oil Co Ltd</td>
</tr>
<tr>
<td>009410.KS</td>
<td>Taeyoung Engineering &amp; Construction Co Ltd</td>
<td>003620.KS</td>
<td>Ssangyong Motor Co Ltd</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HMM Co Ltd</td>
<td>003920.KS</td>
<td>Namyang Dairy Products Co Ltd</td>
</tr>
<tr>
<td>016380.KS</td>
<td>KG DongbuSteel Co Ltd</td>
<td>005850.KS</td>
<td>SL Corp</td>
</tr>
<tr>
<td>020560.KS</td>
<td>Asiana Airlines Inc</td>
<td>006840.KS</td>
<td>AK Holdings Inc</td>
</tr>
<tr>
<td>032350.KS</td>
<td>Lotte Tour Development Co Ltd</td>
<td>008060.KS</td>
<td>Daeduck Co Ltd</td>
</tr>
<tr>
<td>180640.KS</td>
<td>Hanjin Kal</td>
<td>025540.KS</td>
<td>Korea Electric Terminal Co Ltd</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DoubleU Games Co Ltd</td>
<td>079430.KS</td>
<td>Hyundai Livart Furniture Co Ltd</td>
</tr>
<tr>
<td>241590.KS</td>
<td>Hwaseung Enterprise Co Ltd</td>
<td>096760.KS</td>
<td>JW Holdings Corp</td>
</tr>
<tr>
<td>284740.KS</td>
<td>Cuckoo Homesys Co Ltd</td>
<td>298040.KS</td>
<td>Hyosung Heavy Industries Corp</td>
</tr>
</tbody>
</table><p>There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.</p>

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.The inclusions and exclusions are tabulated here.



INCLUSIONS
EXCLUSIONS


003670.KS
Posco Chemical Co Ltd
001520.KS
Tongyang Inc


007700.KS
F&amp;F Co Ltd
002960.KS
Hankook Shell Oil Co Ltd


009410.KS
Taeyoung Engineering &amp; Construction Co Ltd
003620.KS
Ssangyong Motor Co Ltd


011200.KS
HMM Co Ltd
003920.KS
Namyang Dairy Products Co Ltd


016380.KS
KG DongbuSteel Co Ltd
005850.KS
SL Corp


020560.KS
Asiana Airlines Inc
006840.KS
AK Holdings Inc


032350.KS
Lotte Tour Development Co Ltd
008060.KS
Daeduck Co Ltd


180640.KS
Hanjin Kal
025540.KS
Korea Electric Terminal Co Ltd


192080.KS
DoubleU Games Co Ltd
079430.KS
Hyundai Livart Furniture Co Ltd


241590.KS
Hwaseung Enterprise Co Ltd
096760.KS
JW Holdings Corp


284740.KS
Cuckoo Homesys Co Ltd
298040.KS
Hyosung Heavy Industries Corp


There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.

South Korea

Posco Future M Co., Ltd. manufactures and distributes energy materials. The Company produces battery materials, advanced chemical materials, basic industrial materials, and other related products. Posco Future M also produces lime chemical and refractory products.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Posco Future M (003670 KS)

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The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is...

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