Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Samsung FN REIT is getting ready to complete its IPO in April 2023, which will be the first Samsung Group related REIT that will become public. </li>
<li>The core real estate properties of Samsung FN REIT will include the 'Daechi Tower' and 'S1 Building' which have excellent locations in Seoul. </li>
<li>We expect a huge demand for this IPO of Samsung FN REIT and we have a Positive view of this IPO. </li>
</ul>


Samsung FN REIT is getting ready to complete its IPO in April 2023, which will be the first Samsung Group related REIT that will become public. 
The core real estate properties of Samsung FN REIT will include the 'Daechi Tower' and 'S1 Building' which have excellent locations in Seoul. 
We expect a huge demand for this IPO of Samsung FN REIT and we have a Positive view of this IPO. 


Samsung FN REIT: The First Major REIT IPO for Samsung Group

Event-Driven

<ul>
<li>SK REITs (395400 KS) announced today that it will conduct a rights offering worth 210 billion won, representing 25% of its current market cap of 829 billion won.</li>
<li>The rights offering will allow SK REITs to acquire SK U Tower. The rights offering price is 5,060 won, which is 5.4% discount to the current price of 5,350 won.</li>
<li>We would subscribe to this SK REITs rights offering. The SK U Tower in Bundang has excellent location and it has SK Hynix as the main tenant.</li>
</ul>


SK REITs (395400 KS) announced today that it will conduct a rights offering worth 210 billion won, representing 25% of its current market cap of 829 billion won.
The rights offering will allow SK REITs to acquire SK U Tower. The rights offering price is 5,060 won, which is 5.4% discount to the current price of 5,350 won.
We would subscribe to this SK REITs rights offering. The SK U Tower in Bundang has excellent location and it has SK Hynix as the main tenant.


SK REITs Issues a Rights Offering Worth 210 Billion Won

<ul>
<li>On 23 March, Korea Exchange launched two Korean REITs related indices, including KRX REITs TOP 10 Index and KRX REITs TOP 10 Leverage Index.</li>
<li>Korea Exchange will list two more REITs related ETFs in KOSPI on 24 May including Arirang Fn KREIT ETF (429740 KS) and HEROES REITs IGIS Active ETF (429870 KS). </li>
<li>The launch of the two new REIT indices by the Korea Exchange and two new REIT ETFs are likely to accelerate higher demand for high quality REITs in Korea. </li>
</ul>


On 23 March, Korea Exchange launched two Korean REITs related indices, including KRX REITs TOP 10 Index and KRX REITs TOP 10 Leverage Index.
Korea Exchange will list two more REITs related ETFs in KOSPI on 24 May including Arirang Fn KREIT ETF (429740 KS) and HEROES REITs IGIS Active ETF (429870 KS). 
The launch of the two new REIT indices by the Korea Exchange and two new REIT ETFs are likely to accelerate higher demand for high quality REITs in Korea. 


Launch of Two New REIT Indices by KRX and Two New REIT ETFs in Korea

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>We can consider three types of dividend stocks, targeting the March 31 dividend base date: 1. 1Q fiscal year-ending dividends, 2. Interim (quarterly) dividends, 3. REITs regular dividends</li>
<li>The ex-dividend price corrections of fiscal year-ending dividend stocks have been pretty tight recently. In addition, the futures basis has not reached a desirable level either.</li>
<li>So, either outright dividend trading or dividend arb play does not have much trade opening. So, I'd consider setting up a long/short basket trading, by focusing on high DTV ones.</li>
</ul>


We can consider three types of dividend stocks, targeting the March 31 dividend base date: 1. 1Q fiscal year-ending dividends, 2. Interim (quarterly) dividends, 3. REITs regular dividends
The ex-dividend price corrections of fiscal year-ending dividend stocks have been pretty tight recently. In addition, the futures basis has not reached a desirable level either.
So, either outright dividend trading or dividend arb play does not have much trade opening. So, I'd consider setting up a long/short basket trading, by focusing on high DTV ones.


KOSPI/KOSDAQ End-March Dividends: 1Q Fiscal Year-Ending, Interim(Quarterly), & REITs

HD Hyundai Heavy Industries  / Event-Driven

<ul>
<li>KOSPI has seven lockup release events that are likely to hit the market. And all of them are IPO institutional and ESOP lockups.</li>
<li>Whether these IPO institutional/ESOP lockups will hit the market directly correlates with the return size from the offering price. And most of them are still far above the offering price.</li>
<li>Therefore, it is highly likely that a meaningful share price correction will occur on each release date. This correlation pattern has been more pronounced in recent lockup release events.</li>
</ul>


KOSPI has seven lockup release events that are likely to hit the market. And all of them are IPO institutional and ESOP lockups.
Whether these IPO institutional/ESOP lockups will hit the market directly correlates with the return size from the offering price. And most of them are still far above the offering price.
Therefore, it is highly likely that a meaningful share price correction will occur on each release date. This correlation pattern has been more pronounced in recent lockup release events.


KOSPI Lockup Releases & Likelihood of Hitting the Market

South Korea

SK REITs Co., Ltd. operates real estate investment trust. The Company conducts real estate investment management business. SK REITs provides services in Korea.

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SK REITs (395400 KS)

Samsung FN REIT: The First Major REIT IPO for Samsung Group

Samsung FN REIT is getting ready to complete its IPO in April 2023, which will be the first Samsung Group related REIT that will become public.

Douglas Kim

SK REITs Issues a Rights Offering Worth 210 Billion Won

SK REITs (395400 KS) announced today that it will conduct a rights offering worth 210 billion won to purchase SK U Tower in Bundang, Korea. We...

Douglas Kim

Launch of Two New REIT Indices by KRX and Two New REIT ETFs in Korea

The launch of the two new REIT indices by the Korea Exchange and two new REIT ETFs are likely to accelerate higher demand for high quality REITs in...

Douglas Kim

KOSPI/KOSDAQ End-March Dividends: 1Q Fiscal Year-Ending, Interim(Quarterly), & REITs

This post offers the latest update on the expected dividends and dividend yields of the three types of end-1Q dividend stocks.

Sanghyun Park

KOSPI Lockup Releases & Likelihood of Hitting the Market

This post details the KOSPI lockup releases from now to the end of May. Seven lockup release events are considered a high likelihood of hitting the...

Sanghyun Park

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