Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>On 5 January, Posco (005490 KS) announced several shareholder friendly policies including a partial cancellation of its treasury shares.</li>
<li>Following this announcement, POSCO's share price climbed 3.1% while KOSPI fell 1.2%.</li>
<li>All in all, we believe that these shareholder friendly policies (including large scale treasury shares cancellation) could help POSCO's share price to outperform the market in the next several weeks. </li>
</ul>


On 5 January, Posco (005490 KS) announced several shareholder friendly policies including a partial cancellation of its treasury shares.
Following this announcement, POSCO's share price climbed 3.1% while KOSPI fell 1.2%.
All in all, we believe that these shareholder friendly policies (including large scale treasury shares cancellation) could help POSCO's share price to outperform the market in the next several weeks. 


POSCO Announces Partial Cancellation of Treasury Shares

<ul>
<li>In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). </li>
<li>Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.</li>
<li>Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. </li>
</ul>


In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). 
Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.
Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. 


POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

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>There are six local sector indexes in total, which have a meaningful level of AUM and will be rebalanced in December.</li>
<li>In KOSPI200 IT, LG Corp and Samsung SDS will face a positive flow, while SDI will have an outflow on December 9. KB Financial will replace POSCO in FnGuide TOP10.</li>
<li>Samsung SDI, Enchem, and Dear U deserve the most attention the next day (the 10th). Besides Dear U, RBW is another likely addition to both K-Metaverse and Metaverse Theme.</li>
</ul>


There are six local sector indexes in total, which have a meaningful level of AUM and will be rebalanced in December.
In KOSPI200 IT, LG Corp and Samsung SDS will face a positive flow, while SDI will have an outflow on December 9. KB Financial will replace POSCO in FnGuide TOP10.
Samsung SDI, Enchem, and Dear U deserve the most attention the next day (the 10th). Besides Dear U, RBW is another likely addition to both K-Metaverse and Metaverse Theme.


Korea Sector Indexes with December Rebalancing: Passive Impact by Date

<ul>
<li>It is safe to take that POSCO acknowledged the conversion to a holding company.</li>
<li>Since there is a high probability of no appraisal rights, it seems risky to start building a position without hedging at this point.</li>
<li>It seems better to build a position when the split is disclosed through a regulatory filing. The direction should be aligned with the share buyback momentum with a long position.</li>
</ul>


It is safe to take that POSCO acknowledged the conversion to a holding company.
Since there is a high probability of no appraisal rights, it seems risky to start building a position without hedging at this point.
It seems better to build a position when the split is disclosed through a regulatory filing. The direction should be aligned with the share buyback momentum with a long position.


POSCO Split Dynamics from a Trading Perspective

Equity Capital Markets

LG Energy Solution / Equity Capital Markets

<ul>
<li>This is our <strong>7th "Annual Edition of the Major Korean IPOs Pipeline Preview"</strong> at Smartkarma! </li>
<li>This insight will feature 50 of the biggest potential IPOs in Korea in 2022. </li>
<li><strong>The IPO pipeline in 2022 is very strong, led by LG Energy Solution. However, 2022 is likely to be the peak year for IPO capital raising in Korea. </strong></li>
</ul>


This is our 7th "Annual Edition of the Major Korean IPOs Pipeline Preview" at Smartkarma! 
This insight will feature 50 of the biggest potential IPOs in Korea in 2022. 
The IPO pipeline in 2022 is very strong, led by LG Energy Solution. However, 2022 is likely to be the peak year for IPO capital raising in Korea. 


South Korea

POSCO manufactures various types of steel products.  The Company produces hot rolled steel, cold rolled steel, stainless steel, and other forms of steel. The products are mainly used for automobile, construction, and shipbuilding industries.

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Posco ADR (PKX US)

POSCO Announces Partial Cancellation of Treasury Shares

We believe that these shareholder friendly policies (including large scale treasury shares cancellation) could help POSCO's share price to...

Douglas Kim

POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

Overall, we believe that POSCO's shares could be negatively pressured by this decision on the company to form a physical spin-off of the company.

Douglas Kim

Korea Sector Indexes with December Rebalancing: Passive Impact by Date

There are six local sector indexes in total, which have a meaningful level of AUM and will be rebalanced in December. This post tracks the passive...

Sanghyun Park

POSCO Split Dynamics from a Trading Perspective

POSCO practically acknowledged the conversion to a holding company. We should build a long position when the split is disclosed, and the direction...

Sanghyun Park

2022 Major IPOs Pipeline in Korea

This is our 7th "Annual Edition of the Major Korean IPOs Pipeline Preview" at Smartkarma! This insight will feature 50 of the biggest IPOs in Korea...

Douglas Kim

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