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.

Equity Capital Markets

<ul>
<li>Samsung SDI kept the trading window open until May 12, not May 9 — so stock rights will trade for a total of six sessions.</li>
<li>If all shorts are closed by May 16, we can still subscribe. Spot hedging isn’t allowed, but outright shorts for pricing plays are fine.</li>
<li>Entry cost is effectively capped at 146,200 won, and it’s still very unlikely the final price exceeds that, so using it as the rights entry cap still makes sense.</li>
</ul>


Samsung SDI kept the trading window open until May 12, not May 9 — so stock rights will trade for a total of six sessions.
If all shorts are closed by May 16, we can still subscribe. Spot hedging isn’t allowed, but outright shorts for pricing plays are fine.
Entry cost is effectively capped at 146,200 won, and it’s still very unlikely the final price exceeds that, so using it as the rights entry cap still makes sense.


Samsung SDI Rights Trade Period & Short Ban: Quick Clarity

<ul>
<li>Not much juice at ex-rights — price move’s small, and shorting’s risky with recall risk and having to compensate the lender for lost rights.</li>
<li>Some locals chase rights instead, but it’s not really a go-to trade with all the cost/efficiency uncertainty.</li>
<li>First round price pre–ex-rights sets the floor for arb margins and anchors rights pricing once they start trading — key level to keep in the playbook.</li>
</ul>


Not much juice at ex-rights — price move’s small, and shorting’s risky with recall risk and having to compensate the lender for lost rights.
Some locals chase rights instead, but it’s not really a go-to trade with all the cost/efficiency uncertainty.
First round price pre–ex-rights sets the floor for arb margins and anchors rights pricing once they start trading — key level to keep in the playbook.


Clearing Up the Confusion: Ex-Rights Trading in Korean Rights Offerings

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Samsung SDI (006400 KS) has lowered the rights offering capital raise amount by 14% to 1.7 trillion won, mainly due to the recent carnage in the global equity markets. </li>
<li>The expected rights offering price has been lowered to 146,200 won, which is 14.9% lower than current price.</li>
<li>We remain negative on Samsung SDI's rights offering capital raise mainly due to shares dilution risk. We also remain concerned that the weak demand for EVs globally could last longer.</li>
</ul>


Samsung SDI (006400 KS) has lowered the rights offering capital raise amount by 14% to 1.7 trillion won, mainly due to the recent carnage in the global equity markets. 
The expected rights offering price has been lowered to 146,200 won, which is 14.9% lower than current price.
We remain negative on Samsung SDI's rights offering capital raise mainly due to shares dilution risk. We also remain concerned that the weak demand for EVs globally could last longer.


Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won

<ul>
<li>Samsung SDI’s rights offering is locked in and even accelerated. Hanwha Aerospace awaits FSS approval, but a pullback is unlikely, with no major red flags seen by regulators.</li>
<li>With a four-week gap, supply pressure eases, reducing overhang concerns. This shift in dynamics impacts stock rights pricing and is key for any arb setup.</li>
<li>The wider schedule gap between deals boosts lenders' flexibility, increasing the likelihood of a stronger share recall. This makes for a solid trade setup, targeting recall-driven price action.</li>
</ul>


Samsung SDI’s rights offering is locked in and even accelerated. Hanwha Aerospace awaits FSS approval, but a pullback is unlikely, with no major red flags seen by regulators.
With a four-week gap, supply pressure eases, reducing overhang concerns. This shift in dynamics impacts stock rights pricing and is key for any arb setup.
The wider schedule gap between deals boosts lenders' flexibility, increasing the likelihood of a stronger share recall. This makes for a solid trade setup, targeting recall-driven price action.


Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure

<ul>
<li>Korea’s rights issues offer a clean arb setup—track stock rights vs. spot price, with first price as a cap, and lock in predictable entry vs. exit costs.</li>
<li>Aggressive locals skip hedging, betting the discount holds between final pricing and listing. History backs it, but it’s a case-by-case call—not a blanket recommendation.</li>
<li>Samsung SDI and Hanwha Aerospace’s KRW 5.5T raise is massive, likely flooding stock rights into the market—prime setup for arb plays.</li>
</ul>


Korea’s rights issues offer a clean arb setup—track stock rights vs. spot price, with first price as a cap, and lock in predictable entry vs. exit costs.
Aggressive locals skip hedging, betting the discount holds between final pricing and listing. History backs it, but it’s a case-by-case call—not a blanket recommendation.
Samsung SDI and Hanwha Aerospace’s KRW 5.5T raise is massive, likely flooding stock rights into the market—prime setup for arb plays.


Revisiting Korea’s Local Rights Issue Arb Setup

South Korea

Samsung SDI Co., Ltd. specializes in developing Lithium Ion Battery (LIB) technology.  The Company also manufactures cathode ray tubes (CRTs) for televisions and computer monitors.  Samsung SDI also produces liquid crystal display (LCD) components and rechargeable batteries for cellular phones , personal digital assistants (PDAs), Energy Storage Systems and solar panels.

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Samsung SDI (006400 KS)

Samsung SDI Rights Trade Period & Short Ban: Quick Clarity

This post clears up the confusion around Samsung SDI’s stock rights trading period and the short selling ban — what’s allowed, what’s not, and what...

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Clearing Up the Confusion: Ex-Rights Trading in Korean Rights Offerings

Korea’s rights offerings differ from global norms, causing noise in arb trading. Using the recent Samsung SDI deal as a case study, I’ll focus on...

Sanghyun Park

Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won

Samsung SDI has lowered the rights offering capital raise amount by 14% to 1.7 trillion won. The expected rights offering price has been lowered to...

Douglas Kim

Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure

This post clears up the confusion around the FSS’s intensive review of Samsung SDI and Hanwha Aerospace’s rights offerings: Keep an eye on the...

Sanghyun Park

Revisiting Korea’s Local Rights Issue Arb Setup

This post revisits Korea’s rights issue arb setup—fine-tuning the playbook and spotting the best angles to play the spread.

Sanghyun Park

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