Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Jul 31st. The aggregated holding was USD1,567.2bn.</li>
<li>We estimate that foreign flows to be outflows of USD5,792mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE, SKTelecom.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Jul 31st. The aggregated holding was USD1,567.2bn.
We estimate that foreign flows to be outflows of USD5,792mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE, SKTelecom.


KRX Foreign Holding Weekly (Jul 31st): SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 29 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>Three new deals were was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/sk-signet-inc" target="_blank" data-smartkarma-citation="entities:55377:1" rel="noopener">SK Signet (260870 KS)</a>, <a href="https://www.smartkarma.com/entities/energy-one-ltd" target="_blank" data-smartkarma-citation="entities:19865:1" rel="noopener">Energy One (EOL AU)</a>, and <a href="https://www.smartkarma.com/entities/ns-united-kaiun-kaisha-ltd" target="_blank" data-smartkarma-citation="entities:17238:1" rel="noopener">Ns United Kaiun Kaisha (9110 JP)</a>. </li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU)</a>, <a href="https://www.smartkarma.com/entities/zenith-minerals-ltd" target="_blank" data-smartkarma-citation="entities:3234:1" rel="noopener">Zenith Minerals (ZNC AU)</a>, <a href="https://www.smartkarma.com/entities/australian-strategic-materials" target="_blank" data-smartkarma-citation="entities:30815:1" rel="noopener">Australian Strategic Materials (ASM AU)</a>, <a href="https://www.smartkarma.com/entities/pepper-money-ltd-australia" target="_blank" data-smartkarma-citation="entities:24157:1" rel="noopener">Pepper Money (PPM AU)</a>, and <a href="https://www.smartkarma.com/entities/yamada-corp" target="_blank" data-smartkarma-citation="entities:16273:1" rel="noopener">Yamada Corp (6392 JP)</a><a href="https://www.smartkarma.com/entities/yamada-corp" target="_blank" data-smartkarma-citation="entities:16273:1" rel="noopener"></a>.</li>
</ul>


I tally 29 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Three new deals were was discussed on Smartkarma this week: SK Signet (260870 KS), Energy One (EOL AU), and Ns United Kaiun Kaisha (9110 JP). 
Key updates/news also took place on: Perpetual Ltd (PPT AU), Zenith Minerals (ZNC AU), Australian Strategic Materials (ASM AU), Pepper Money (PPM AU), and Yamada Corp (6392 JP).


Asia-Pac Weekly Wrap: Perpetual, SK Signet, Energy One, Superland, WK Group, Ns United Kaiun, Yamada

<ul>
<li>Bain+LY have come over the top of EQT+DG for <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com (2371 JP)</a>. We may get another 5% out of this, but we're closer to the end than the beginning.</li>
<li>
<a href="https://www.smartkarma.com/entities/commonwealth-bank-of-australia" target="_blank" data-smartkarma-citation="entities:14:1" rel="noopener">Commonwealth Bank of Australia (CBA AU)</a> has knock <a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU)</a> off its perch as the most shorted Aussie stock by $ value.</li>
<li>Murakami Group has, indeed, increased its stake in <a href="https://www.smartkarma.com/entities/yamada-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:641:1" rel="noopener">Yamada Holdings (9831 JP)</a>. They are now at 6.26%. They are not in it because Yamada is fairly-priced vs <a href="https://www.smartkarma.com/entities/edion-corp" target="_blank" data-smartkarma-citation="entities:14358:1" rel="noopener">Edion (2730 JP)</a>.</li>
</ul>


Bain+LY have come over the top of EQT+DG for Kakaku.com (2371 JP). We may get another 5% out of this, but we're closer to the end than the beginning.

Commonwealth Bank of Australia (CBA AU) has knock Rio Tinto Ltd (RIO AU) off its perch as the most shorted Aussie stock by $ value.
Murakami Group has, indeed, increased its stake in Yamada Holdings (9831 JP). They are now at 6.26%. They are not in it because Yamada is fairly-priced vs Edion (2730 JP).


Last Week In Event SPACE: Kakaku.com, Aussie Banks, Yamada, Muyuan Foods, IAG/Suncorp

<ul>
<li>On the 24th July, <a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Inc (034730 KS)</a> launched a voluntary public Tender Offer to acquire full control of ultra-fast EV charger play <a href="https://www.smartkarma.com/entities/sk-signet-inc" target="_blank" data-smartkarma-citation="entities:55377:1" rel="noopener">SK Signet (260870 KS)</a>.</li>
<li>SK Inc is offering ₩8,200/share, a 26.2% premium to undisturbed. SK Inc, which owns 74.9% of SK Signet, is making the Offer after SK Signet touched a multi-year low. </li>
<li>There is no minimum tendering condition. SK Inc is taking advantage of an illiquid KONEX stock, three years of losses, plus capital-impairment concerns. It is what it is.</li>
</ul>


On the 24th July, SK Inc (034730 KS) launched a voluntary public Tender Offer to acquire full control of ultra-fast EV charger play SK Signet (260870 KS).
SK Inc is offering ₩8,200/share, a 26.2% premium to undisturbed. SK Inc, which owns 74.9% of SK Signet, is making the Offer after SK Signet touched a multi-year low. 
There is no minimum tendering condition. SK Inc is taking advantage of an illiquid KONEX stock, three years of losses, plus capital-impairment concerns. It is what it is.


SK Signet (260870 KS): SK Inc (034730 KS)'s Low-Balled Offer

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>On 24 July, SK Inc (034730 KS) launched a tender offer for common shares of SK Signet (260870 KS), a subsidiary listed on the KONEX market. </li>
<li>The tender offer is for a 46.5% stake in SK Signet. Post a successful tender offer, SK Inc plans to delist SK Signet.</li>
<li>Overall, I am negative on this tender offer and on SK Signet. I think the more realistic scenario is for investors to tender about 10-15% of outstanding shares. </li>
</ul>


On 24 July, SK Inc (034730 KS) launched a tender offer for common shares of SK Signet (260870 KS), a subsidiary listed on the KONEX market. 
The tender offer is for a 46.5% stake in SK Signet. Post a successful tender offer, SK Inc plans to delist SK Signet.
Overall, I am negative on this tender offer and on SK Signet. I think the more realistic scenario is for investors to tender about 10-15% of outstanding shares. 


A Tender Offer of a 46.5% Stake in SK Signet by SK Inc

South Korea

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

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SK Inc (034730 KS)

KRX Foreign Holding Weekly (Jul 31st): SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, Samsung Electronics, SamsungElecMech,...

Ke Yan, CFA, FRM

Asia-Pac Weekly Wrap: Perpetual, SK Signet, Energy One, Superland, WK Group, Ns United Kaiun, Yamada

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Last Week In Event SPACE: Kakaku.com, Aussie Banks, Yamada, Muyuan Foods, IAG/Suncorp

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

SK Signet (260870 KS): SK Inc (034730 KS)'s Low-Balled Offer

Trading at a 0.8%/112% gross/annualised spread, inclusive of a 0.35% tendering fee. If illiquid arbs are your bag, and not it, I might get exposure...

David Blennerhassett

A Tender Offer of a 46.5% Stake in SK Signet by SK Inc

On 24 July, SK Inc (034730 KS) launched a tender offer for common shares of SK Signet (260870 KS), a subsidiary listed on the KONEX market.

Douglas Kim

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