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.

Event-Driven

<ul>
<li>
<strong>The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly.</strong> Also, the rebalancing trading takes place for three trading days instead of one trading day.</li>
<li>
<strong>This passive impact will be different from the previous rebalancing.</strong> LG Energy and SK Innovation will likely experience a significant passive outflow. Then, most small-cap constituents will receive an inflow. </li>
<li>
<strong>Among the top weighting stocks, Samsung SDI and SKIET deserve attention</strong>. Sangsin Energy, E&amp;D, and TSI will face exclusion, while C&amp;I, Sang-A Frontec, and Enchem will likely join the ETF.</li>
</ul>



The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. Also, the rebalancing trading takes place for three trading days instead of one trading day.

This passive impact will be different from the previous rebalancing. LG Energy and SK Innovation will likely experience a significant passive outflow. Then, most small-cap constituents will receive an inflow. 

Among the top weighting stocks, Samsung SDI and SKIET deserve attention. Sangsin Energy, E&amp;D, and TSI will face exclusion, while C&amp;I, Sang-A Frontec, and Enchem will likely join the ETF.


KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing

<p>The quarterly rebalancing of the WISE Secondary Cell Index is this Friday. So, rebalancing trading takes place this Thursday at the close.</p><div class="content-highlight"><ul>
<li><strong>The TIGER ETF (305540) is the only ETF that tracks this index. However, the recent AUM has risen sharply, and as of yesterday's closing price, the AUM is approaching KRW 1 trillion.</strong></li>
<li><strong>There is no add (or delete) in this rebalancing that will cause a substantial passive impact like SKIET in the previous rebalancing.</strong></li>
<li><strong>But the AUM is massive, so the level of stock price fluctuations potentially resulting from index weight changes is expected to be large enough to deserve our attention.</strong></li>
</ul></div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Index summary"}'>Index summary</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Index name"}'>Index name</td>
<td data-sheets-value='{"1":2,"2":"Wise Secondary Cell"}'><div><div>Wise Secondary Cell</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ETF"}'>ETF</td>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'><div><div>Mirae Asset TIGER Secondary Cell ETF</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td data-sheets-value='{"1":2,"2":"305540"}' data-sheets-formula='="305540"'>305540</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"AUM"}'><strong>AUM</strong></td>
<td data-sheets-value='{"1":3,"3":999.267}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[1]C[0]*R[2]C[0]/1000000000"><strong>₩999.3B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SO"}'><strong>SO</strong></td>
<td data-sheets-value='{"1":3,"3":44650000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>44,650,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Number of constituents"}'>Number of constituents</td>
<td data-sheets-value='{"1":3,"3":26}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Weight type"}'>Weight type</td>
<td data-sheets-value='{"1":2,"2":"Float-adjusted market cap"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>Float-adjusted market cap</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Cap"}'>Cap</td>
<td data-sheets-value='{"1":3,"3":0.1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>10.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing cycle"}'>Rebalancing cycle</td>
<td data-sheets-value='{"1":2,"2":"Quarterly"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>Quarterly</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing month"}'>Rebalancing month</td>
<td data-sheets-value='{"1":2,"2":"January, April, July, and October"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>January, April, July, and October</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Announcement date"}'>Announcement date</td>
<td data-sheets-value='{"1":2,"2":"Only ETF operator is notified"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>Only ETF operator is notified</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implementation date"}'>Implementation date</td>
<td data-sheets-value='{"1":2,"2":"The trading day following the option expiration dates"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>The trading day following the option expiration dates</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Next implementation date"}'>Next implementation date</td>
<td data-sheets-value='{"1":2,"2":"October 15, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>October 15, 2021</div></div></td>
</tr>
<tr><td colspan="2"><div><div></div></div></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing trading"}'><strong>Rebalancing trading</strong></td>
<td data-sheets-value='{"1":2,"2":"At the close on October 14, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>At the close on October 14, 2021</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Screening base date"}'><strong>Screening base date</strong></td>
<td data-sheets-value='{"1":2,"2":"The last trading day of the month preceding the date of regular rebalancing"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>The last trading day of the month preceding the date of regular rebalancing</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Screening period"}'><strong>Screening period</strong></td>
<td data-sheets-value='{"1":2,"2":"The three months preceding the screening base date"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>The three months preceding the screening base date</strong></div></div></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX &amp; TIGER ETF"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=PDF!R[9]C[0]">Source: KRX &amp; TIGER ETF</td></tr>
</tbody>
</table>

The quarterly rebalancing of the WISE Secondary Cell Index is this Friday. So, rebalancing trading takes place this Thursday at the close.
The TIGER ETF (305540) is the only ETF that tracks this index. However, the recent AUM has risen sharply, and as of yesterday's closing price, the AUM is approaching KRW 1 trillion.
There is no add (or delete) in this rebalancing that will cause a substantial passive impact like SKIET in the previous rebalancing.
But the AUM is massive, so the level of stock price fluctuations potentially resulting from index weight changes is expected to be large enough to deserve our attention.






Index summary

Index name
Wise Secondary Cell


ETF
Mirae Asset TIGER Secondary Cell ETF


Ticker
305540


AUM
₩999.3B


SO
44,650,000


Number of constituents
26


Weight type
Float-adjusted market cap


Cap
10.00%


Rebalancing cycle
Quarterly


Rebalancing month
January, April, July, and October


Announcement date
Only ETF operator is notified


Implementation date
The trading day following the option expiration dates


Next implementation date
October 15, 2021



Rebalancing trading
At the close on October 14, 2021


Screening base date
The last trading day of the month preceding the date of regular rebalancing


Screening period
The three months preceding the screening base date

Source: KRX &amp; TIGER ETF



TIGER WISE Secondary Cell Index: October 14 Rabalancing Trading

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.</p><p>The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.</p><p>All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.</p><div><p><a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> replaces <a href="https://www.smartkarma.com/entities/pearl-abyss-corp" target="_blank" data-smartkarma-citation="entities:24391:1" rel="noopener">Pearl Abyss (263750 KS)</a> in the BBIG Index.</p></div><div><p>In the Secondary Battery index, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd" target="_blank" data-smartkarma-citation="entities:16883:1" rel="noopener">Soulbrain (036830 KS)</a> and <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F Co Ltd (066970 KS)</a> replace <a href="https://www.smartkarma.com/entities/doosan-solus-co-ltd" target="_blank" data-smartkarma-citation="entities:28947:1" rel="noopener">Doosan Solus Co Ltd (336370 KS)</a> and <a href="https://www.smartkarma.com/entities/foosung-co-ltd" target="_blank" data-smartkarma-citation="entities:16811:1" rel="noopener">Foosung Co Ltd (093370 KS)</a>.</p></div><div><p>In the Biotech index, <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> replace <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen Inc (196170 KS)</a> and <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a>.</p></div><div><p>In the Internet index, <a href="https://www.smartkarma.com/entities/ace-technologies-corp" target="_blank" data-smartkarma-citation="entities:7868:1" rel="noopener">Ace Technologies (088800 KS)</a> and <a href="https://www.smartkarma.com/entities/rsupport-co-ltd" target="_blank" data-smartkarma-citation="entities:14783:1" rel="noopener">Rsupport Co Ltd (131370 KS)</a> replace <a href="https://www.smartkarma.com/entities/kg-inicis-co-ltd" target="_blank" data-smartkarma-citation="entities:5234:1" rel="noopener">KG Inicis Co Ltd (035600 KS)</a> and <a href="https://www.smartkarma.com/entities/ubiquoss-inc" target="_blank" data-smartkarma-citation="entities:14341:1" rel="noopener">Ubiquoss Holding (078070 KS)</a>.</p></div><div><p>In the Gaming index, <a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> and <a href="https://www.smartkarma.com/entities/neptune-company" target="_blank" data-smartkarma-citation="entities:28826:1" rel="noopener">Neptune Company (217270 KS)</a> replace <a href="https://www.smartkarma.com/entities/neowiz-games-corp" target="_blank" data-smartkarma-citation="entities:12425:1" rel="noopener">Neowiz Games (095660 KS)</a> and Golfzon (215000 KS).</p></div>

The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.Kakao Games Corp (293490 KS) replaces Pearl Abyss (263750 KS) in the BBIG Index.In the Secondary Battery index, Soulbrain (036830 KS) and L&amp;F Co Ltd (066970 KS) replace Doosan Solus Co Ltd (336370 KS) and Foosung Co Ltd (093370 KS).In the Biotech index, Shinpoong Pharmaceutical (019170 KS) and Green Cross (006280 KS) replace Alteogen Inc (196170 KS) and Hanmi Pharm (128940 KS).In the Internet index, Ace Technologies (088800 KS) and Rsupport Co Ltd (131370 KS) replace KG Inicis Co Ltd (035600 KS) and Ubiquoss Holding (078070 KS).In the Gaming index, Kakao Games Corp (293490 KS) and Neptune Company (217270 KS) replace Neowiz Games (095660 KS) and Golfzon (215000 KS).

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

Equity Capital Markets

Doosan Fuel Cell   / Equity Capital Markets

<p>Doosan Fuelcell also announced a new rights issuance of its own.</p>
<p>It offers 10M shares at an indicative price of ₩34,200, which puts the total value at ₩342bil.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/358/original/22.png?1599412597" class="editor-image img-responsive" data-smartkarma-image-id="157358"></figure>
<p>As a result, we have a capital increase rate of 13.92% with a 12.22% dilution.</p>
<p>The stockholder allocation is 93.73%, thereby giving a per share allocation of 0.130471.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/350/original/12.png?1599411438" class="editor-image img-responsive" data-smartkarma-image-id="157350"></figure>
<p>The first round pricing is a bit earlier than Heavy. It is October 9, followed by the ex-rights on October 13.</p>
<p>The subscription rights will be trading on November 20~26, followed by the final pricing on December 2.</p>
<p>The subscription falls on December 7, and the payment on December 15.</p>
<p>The new shares will get listed on December 29.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/351/original/13.png?1599411455" class="editor-image img-responsive" data-smartkarma-image-id="157351"></figure>
<p>This one also carries a usual 20% discount.</p>
<p>Everything else is pretty much in line with the local standard.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/352/original/15.png?1599411466" class="editor-image img-responsive" data-smartkarma-image-id="157352"></figure>

Doosan Fuelcell also announced a new rights issuance of its own.
It offers 10M shares at an indicative price of ₩34,200, which puts the total value at ₩342bil.

As a result, we have a capital increase rate of 13.92% with a 12.22% dilution.
The stockholder allocation is 93.73%, thereby giving a per share allocation of 0.130471.

The first round pricing is a bit earlier than Heavy. It is October 9, followed by the ex-rights on October 13.
The subscription rights will be trading on November 20~26, followed by the final pricing on December 2.
The subscription falls on December 7, and the payment on December 15.
The new shares will get listed on December 29.

This one also carries a usual 20% discount.
Everything else is pretty much in line with the local standard.


Doosan Fuelcell Rights Offer: Terms & Situation

Doosan Enerbility / Equity Capital Markets

<p>Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer.</p>
<p>The offering volume is 121.5M shares, which is a 48% capital increase rate. 20% will go to the ESOP. So, per share allocation for the stockholders is 0.38398.</p>
<p>At the indicative price of ₩10,700, the total value is ₩1.3tril.</p>
<figure class="editor-figure mceNonEditable">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/359/original/21.png?1599412716" class="editor-image img-responsive" data-smartkarma-image-id="157359"></figure>
</figure>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/344/original/2.png?1599411337" class="editor-image img-responsive" data-smartkarma-image-id="157344"></figure>
<p>October 12 will be introductory pricing, with the ex-rights falling on October 14.</p>
<p>Then, we will trade subscription rights on November 18~24. The final pricing will be November 30, followed by subscription on December 3 and payment on December 11.</p>
<p>Listing will be December 24.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/345/original/3.png?1599411350" class="editor-image img-responsive" data-smartkarma-image-id="157345"></figure>
<p>We have a usual 20% discount for the pricing.</p>
<p>Just, this is a massive offering (47.99% capital increase), so the level of overall discount is higher, suggesting that potential room for short-term trading can be larger.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/346/original/5.png?1599411379" class="editor-image img-responsive" data-smartkarma-image-id="157346"></figure>

Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer.
The offering volume is 121.5M shares, which is a 48% capital increase rate. 20% will go to the ESOP. So, per share allocation for the stockholders is 0.38398.
At the indicative price of ₩10,700, the total value is ₩1.3tril.




October 12 will be introductory pricing, with the ex-rights falling on October 14.
Then, we will trade subscription rights on November 18~24. The final pricing will be November 30, followed by subscription on December 3 and payment on December 11.
Listing will be December 24.

We have a usual 20% discount for the pricing.
Just, this is a massive offering (47.99% capital increase), so the level of overall discount is higher, suggesting that potential room for short-term trading can be larger.


Doosan Heavy Industries Rights Offer: Terms & Situation

South Korea

Solus Advanced Materials Co Ltd manufactures and distributes copper products. The Company produces electric vehicles battery copper foils, electronic equipment copper foils, and other related products. Solus Advanced Materials also produces electronic materials and natural based materials.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Solus Advanced Materials (336370 KS)

KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing

The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. This post previews the upcoming rebalancing...

Sanghyun Park

TIGER WISE Secondary Cell Index: October 14 Rabalancing Trading

This post looks at the latest situation of the TIGER WISE Secondary Cell rebalancing trading scheduled for this Thursday.

Sanghyun Park

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

The KRX has announced changes to the KRX New Deal indices that will be effective after the close of trading on 25 February. Pearl Abyss is...

Brian Freitas

Doosan Fuelcell Rights Offer: Terms & Situation

Doosan Fuelcell also announced a new rights issuance of its own. It offers 10M shares at an indicative price of ₩34,200, which puts the total value...

Sanghyun Park

Doosan Heavy Industries Rights Offer: Terms & Situation

Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer. The offering volume is 121.5M...

Sanghyun Park

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