Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 30 July, SK Innovation (096770 KS) announced that it plans to merge its subsidiaries SK On and SK Enmove. The merged company will be launched on 1 November.</li>
<li>SK Group has announced a massive 8 trillion won capital raise plan involving this deal including paid-in capital increase of 2 trillion won for SK Innovation and SK On each. </li>
<li>We provide three major reasons why we are negative on this merger/capital raise. </li>
</ul>


On 30 July, SK Innovation (096770 KS) announced that it plans to merge its subsidiaries SK On and SK Enmove. The merged company will be launched on 1 November.
SK Group has announced a massive 8 trillion won capital raise plan involving this deal including paid-in capital increase of 2 trillion won for SK Innovation and SK On each. 
We provide three major reasons why we are negative on this merger/capital raise. 


A Merger Between SK On and SK Enmove + A Massive 8 Trillion Won in Capital Raise

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>Facing tough fundraising, SK avoided a rights issue, opting for a complex deal to limit dilution and ease investor worries.</li>
<li>It all hinges on how the market views SK On’s cleanup plus Enmove’s steady cash flow—SK Innovation looks oversold, making this a decent long setup.</li>
<li>Enmove’s stable earnings boost SK On’s P&amp;L, likely triggering a rerate for SK Innovation and setting up a classic NAV compression trade.</li>
</ul>


Facing tough fundraising, SK avoided a rights issue, opting for a complex deal to limit dilution and ease investor worries.
It all hinges on how the market views SK On’s cleanup plus Enmove’s steady cash flow—SK Innovation looks oversold, making this a decent long setup.
Enmove’s stable earnings boost SK On’s P&amp;L, likely triggering a rerate for SK Innovation and setting up a classic NAV compression trade.


SK Innovation Cleanup: Watch Out for a Classic NAV Compression Play

Equity Capital Markets

<ul>
<li>KRX’s move on SK Enmove this morning ramps up the odds of an SKI rights issue.</li>
<li>Timing’s again the key — unlike POSCO Future M, this isn’t a clean setup. Word is SK may wait for H2 rate cuts and a more risk-on market backdrop.</li>
<li>So, doesn’t look near-term — likely post-June once local tape firms up. Watch quirky local hot money flows that front-run moves like this.</li>
</ul>


KRX’s move on SK Enmove this morning ramps up the odds of an SKI rights issue.
Timing’s again the key — unlike POSCO Future M, this isn’t a clean setup. Word is SK may wait for H2 rate cuts and a more risk-on market backdrop.
So, doesn’t look near-term — likely post-June once local tape firms up. Watch quirky local hot money flows that front-run moves like this.


Explaining the Whole SK Enmove IPO Delay Situation This Morning: SK Innovation Rights Issue Likely

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>South Korea is likely to be put on a watch list for development market status in the MSCI index in the near future, the country's financial regulator said Monday.</li>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> at the moment shows a strange divergence between the price and the time model, based on our quantitative analysis: one "underbought", the other overbought.
</li>
<li>Our interpretation: the trend has exhausted its time window to rally (overbought) and failed to reach any significative resistance targets (=weakness), hence we could see a sell-off, this week.
</li>
</ul>


South Korea is likely to be put on a watch list for development market status in the MSCI index in the near future, the country's financial regulator said Monday.
The KOSPI 200 INDEX at the moment shows a strange divergence between the price and the time model, based on our quantitative analysis: one "underbought", the other overbought.

Our interpretation: the trend has exhausted its time window to rally (overbought) and failed to reach any significative resistance targets (=weakness), hence we could see a sell-off, this week.



KOSPI 200 Short Term Tactical Outlook Amid Rumors of Korea Joining the MSCI DM Watchlist

Equity Bottom-Up

<ul>
<li>We provide the short selling data analysis of the Korean stock market including the top 20 stocks in KOSPI with the highest short interest ratios in KOSPI and KOSDAQ, respectively. </li>
<li>There have been noticeable shorting on the Ecopro Group companies and other key names in the rechargeable battery sector including Posco Future M, L&amp;F, and SK IE Technology. </li>
<li>Shorting has generally worked for KOSDAQ names with higher short interest ratios but not for KOSPI names in the past two weeks. </li>
</ul>


We provide the short selling data analysis of the Korean stock market including the top 20 stocks in KOSPI with the highest short interest ratios in KOSPI and KOSDAQ, respectively. 
There have been noticeable shorting on the Ecopro Group companies and other key names in the rechargeable battery sector including Posco Future M, L&amp;F, and SK IE Technology. 
Shorting has generally worked for KOSDAQ names with higher short interest ratios but not for KOSPI names in the past two weeks. 


Korea: Short Selling Data Analysis (Which Stocks Are the Gainers and the Losers?)

South Korea

SK IE Technology Co., Ltd operates as a material solution provider. The Company provides information material solutions, electronic materials solutions, and other products. SK IE Technology conducts businesses across worldwide.

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SK IE Technology (361610 KS)

A Merger Between SK On and SK Enmove + A Massive 8 Trillion Won in Capital Raise

SK Innovation announced that it plans to merge its subsidiaries SK On and SK Enmove.We provide three major reasons why we are Negative on this...

Douglas Kim

SK Innovation Cleanup: Watch Out for a Classic NAV Compression Play

This post dives into SK Innovation’s cleanup disclosure today, unpacking how these moves set the stage for an opportunity in a classic NAV...

Sanghyun Park

Explaining the Whole SK Enmove IPO Delay Situation This Morning: SK Innovation Rights Issue Likely

It’s looking more likely that SK Innovation (096770 KS) will go ahead with a rights offering after SK Group’s strategy meeting in mid-June. They’re...

Sanghyun Park

KOSPI 200 Short Term Tactical Outlook Amid Rumors of Korea Joining the MSCI DM Watchlist

While South Korea may be added to MSCI’s watchlist for Developed Market status, our model's short-term tactical outlook for the KOSPI 200 suggests...

Nico Rosti

Korea: Short Selling Data Analysis (Which Stocks Are the Gainers and the Losers?)

Shorting has generally worked for KOSDAQ names with higher short interest ratios but not for KOSPI names in the past two weeks.

Douglas Kim

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