Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Woori Financial Group  / Equity Capital Markets

<ul>
<li>KDIC is looking to sell around half of its remaining stake in Woori Financial Group (WFG).</li>
<li>This is almost a clean-up trade considering that KDIC had a stake of nearly 18% at the start of 2021 and will now be reduced to a less than 2%.</li>
<li>In this note, we will run the deal through our ECM framework.</li>
</ul>


KDIC is looking to sell around half of its remaining stake in Woori Financial Group (WFG).
This is almost a clean-up trade considering that KDIC had a stake of nearly 18% at the start of 2021 and will now be reduced to a less than 2%.
In this note, we will run the deal through our ECM framework.


Woori Financials Placement - Almost a Clean-Up Although past Deals Haven’t Done Much

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight">
<p><strong>In the past several days, it was noted in the local media that <a href="http://www.investchosun.com/site/data/html_dir/2021/11/03/2021110380005.html" target="_blank" rel="noopener">Dunamu</a> is currently in the process of selling at least 200 billion won in the private markets at a valuation of about 10 trillion won.</strong> The sellers are the existing financial investors (mostly <a href="https://www.smartkarma.com/entities/hanwha-investment-securiti" target="_blank" data-smartkarma-citation="entities:10558:1" rel="noopener">Hanwha Securities (003530 KS) </a>and other local VC investors) in Dunamu that want to realize fat profits. </p>
<p>The value of 10 trillion won would be nearly 7x higher than in February 2021 when Dunamu was last valued at 1.5 trillion won (by DSC Investment and Hanwha Investment &amp; Securities). Although Dunamu has yet to make its official announcement on a IPO, we believe that it is highly likely to occur sometime in 2022. At a value of 10 trillion won or more, it could raise more than 1 trillion won through an IPO. </p>
</div><p>At a value of 10 trillion won for Dunamu, Hanwha Investment &amp; Securities' 6.15% stake would be worth 615 billion won. <a href="https://www.smartkarma.com/entities/hanwha-investment-securiti" target="_blank" data-smartkarma-citation="entities:10558:1" rel="noopener">Hanwha Securities (003530 KS)</a> currently has a market cap of 1.3 trillion won so its stake in Dunamu would be worth 48% of its market cap. </p>


In the past several days, it was noted in the local media that Dunamu is currently in the process of selling at least 200 billion won in the private markets at a valuation of about 10 trillion won. The sellers are the existing financial investors (mostly Hanwha Securities (003530 KS) and other local VC investors) in Dunamu that want to realize fat profits. 
The value of 10 trillion won would be nearly 7x higher than in February 2021 when Dunamu was last valued at 1.5 trillion won (by DSC Investment and Hanwha Investment &amp; Securities). Although Dunamu has yet to make its official announcement on a IPO, we believe that it is highly likely to occur sometime in 2022. At a value of 10 trillion won or more, it could raise more than 1 trillion won through an IPO. 
At a value of 10 trillion won for Dunamu, Hanwha Investment &amp; Securities' 6.15% stake would be worth 615 billion won. Hanwha Securities (003530 KS) currently has a market cap of 1.3 trillion won so its stake in Dunamu would be worth 48% of its market cap. 

An Update on the Dunamu IPO & Sale of 200 Billion Won in the Private Market At 10 Trillion Won Value

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.

<p>We now have KOSPI 200 and KOSDAQ 150 rebalancing completed. What does this mean? It means we have new members of the so-called Korea Short 350 as these new additions are now eligible for short selling.</p><p>So, let's look at their current loan balance, often serving as a leading indicator of short-selling intensity in the short term.</p>

We now have KOSPI 200 and KOSDAQ 150 rebalancing completed. What does this mean? It means we have new members of the so-called Korea Short 350 as these new additions are now eligible for short selling.So, let's look at their current loan balance, often serving as a leading indicator of short-selling intensity in the short term.

Korea Short 350 New Members: KOSPI 200 & KOSDAQ 150 Adds

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The KRX has announced the list of inclusions and exclusions to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> today. The rebalance is effective after the close of trading on 10 June.</p><p>There are 16 inclusions into and exclusions from the index at the June review with an estimated one-way turnover of 7.04%.</p><table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td colspan="2" style="text-align: center; width: 233pt;"><h3>Inclusions</h3></td>
<td colspan="2" style="text-align: center; width: 242pt;"><h3>Exclusions</h3></td>
</tr>
<tr>
<td><strong>Code</strong></td>
<td><strong>Name</strong></td>
<td><strong>Code</strong></td>
<td><strong>Name</strong></td>
</tr>
<tr>
<td>015750.KQ</td>
<td>Sungwoo Hitech Co Ltd</td>
<td>018290.KQ</td>
<td>VT GMP Co Ltd</td>
</tr>
<tr>
<td>018000.KQ</td>
<td>Unison Co Ltd</td>
<td>034950.KQ</td>
<td>Korea Ratings Corp</td>
</tr>
<tr>
<td>027360.KQ</td>
<td>AJu IB Investment Co Ltd</td>
<td>035810.KQ</td>
<td>Easy Holdings Co Ltd</td>
</tr>
<tr>
<td>036810.KQ</td>
<td>Fine Semitech Corp</td>
<td>052020.KQ</td>
<td>STCube Inc</td>
</tr>
<tr>
<td>041190.KQ</td>
<td>Woori Technology Investment Co Ltd</td>
<td>052260.KQ</td>
<td>Hyundai BioLand Co Ltd</td>
</tr>
<tr>
<td>053030.KQ</td>
<td>Binex Co Ltd</td>
<td>060570.KQ</td>
<td>Dream Us Co</td>
</tr>
<tr>
<td>082270.KQ</td>
<td>GemVax &amp; KAEL Co Ltd</td>
<td>065660.KQ</td>
<td>Anterogen Co Ltd</td>
</tr>
<tr>
<td>100090.KQ</td>
<td>Samkang M&amp;T Co Ltd</td>
<td>082920.KQ</td>
<td>Vitzrocell Co Ltd</td>
</tr>
<tr>
<td>131290.KQ</td>
<td>TSE Co Ltd</td>
<td>092730.KQ</td>
<td>NeoPharm Co Ltd</td>
</tr>
<tr>
<td>131970.KQ</td>
<td>Tesna Inc</td>
<td>143240.KQ</td>
<td>Saramin HR Co Ltd</td>
</tr>
<tr>
<td>140860.KQ</td>
<td>Park Systems Corp</td>
<td>194700.KQ</td>
<td>Novarex Co Ltd</td>
</tr>
<tr>
<td>166090.KQ</td>
<td>Hana Materials Inc</td>
<td>214370.KQ</td>
<td>Caregen Co Ltd</td>
</tr>
<tr>
<td>175250.KQ</td>
<td>Icure Pharmaceutical Inc</td>
<td>215000.KQ</td>
<td>Golfzon Co Ltd</td>
</tr>
<tr>
<td>194480.KQ</td>
<td>Devsisters Corp</td>
<td>237880.KQ</td>
<td>Clio Cosmetics Co Ltd</td>
</tr>
<tr>
<td>222800.KQ</td>
<td>Simmtech Co Ltd</td>
<td>239610.KQ</td>
<td>HL Science Co Ltd</td>
</tr>
<tr>
<td>323990.KQ</td>
<td>Vaxcell Bio Therapeutics</td>
<td>243840.KQ</td>
<td>Shin Heung Energy &amp; Electronics Co Ltd</td>
</tr>
</tbody>
</table><p>There are 12 trading days to implementation of the changes and there are a lot of additions and deletions that have over 2 days of ADV to trade. There will be a lot of action in the next few days on the names with higher ADV to trade.</p><p>With short selling limited to the constituents of the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a>, shorting the inclusions will be tough while selling/shorting the deletions is a lot easier since they are current index constituents. The inclusions could outperform the deletions till a couple of days before implementation date, while there could be a high risk/reward reverse trade if the outperformance is significant.</p>

The KRX has announced the list of inclusions and exclusions to the KOSDAQ 150 Index (KOSDQ150 INDEX) today. The rebalance is effective after the close of trading on 10 June.There are 16 inclusions into and exclusions from the index at the June review with an estimated one-way turnover of 7.04%.








Inclusions
Exclusions


Code
Name
Code
Name


015750.KQ
Sungwoo Hitech Co Ltd
018290.KQ
VT GMP Co Ltd


018000.KQ
Unison Co Ltd
034950.KQ
Korea Ratings Corp


027360.KQ
AJu IB Investment Co Ltd
035810.KQ
Easy Holdings Co Ltd


036810.KQ
Fine Semitech Corp
052020.KQ
STCube Inc


041190.KQ
Woori Technology Investment Co Ltd
052260.KQ
Hyundai BioLand Co Ltd


053030.KQ
Binex Co Ltd
060570.KQ
Dream Us Co


082270.KQ
GemVax &amp; KAEL Co Ltd
065660.KQ
Anterogen Co Ltd


100090.KQ
Samkang M&amp;T Co Ltd
082920.KQ
Vitzrocell Co Ltd


131290.KQ
TSE Co Ltd
092730.KQ
NeoPharm Co Ltd


131970.KQ
Tesna Inc
143240.KQ
Saramin HR Co Ltd


140860.KQ
Park Systems Corp
194700.KQ
Novarex Co Ltd


166090.KQ
Hana Materials Inc
214370.KQ
Caregen Co Ltd


175250.KQ
Icure Pharmaceutical Inc
215000.KQ
Golfzon Co Ltd


194480.KQ
Devsisters Corp
237880.KQ
Clio Cosmetics Co Ltd


222800.KQ
Simmtech Co Ltd
239610.KQ
HL Science Co Ltd


323990.KQ
Vaxcell Bio Therapeutics
243840.KQ
Shin Heung Energy &amp; Electronics Co Ltd


There are 12 trading days to implementation of the changes and there are a lot of additions and deletions that have over 2 days of ADV to trade. There will be a lot of action in the next few days on the names with higher ADV to trade.With short selling limited to the constituents of the KOSDAQ 150 Index (KOSDQ150 INDEX), shorting the inclusions will be tough while selling/shorting the deletions is a lot easier since they are current index constituents. The inclusions could outperform the deletions till a couple of days before implementation date, while there could be a high risk/reward reverse trade if the outperformance is significant.

KOSDAQ150 Index Rebalance: 16 Changes & Large Turnover

AnnouncementThe KRX has just announced the results of the KOSDAQ 150 semi-annual rebalancing. The KRX will reflect the changes in the index calculation at the close of June 10. 16 in total newly make KOSPI 200, while 16 names leave the index.Ecopro HN (new listing) will be added to the index on May 31 but will be deleted on June 11.








KOSDAQ 150 additions
Ticker
KOSDAQ 150 deletions
Ticker


SamKang M&amp;T Co., Ltd
100090
HL Science Co Ltd
239610


Unison Co Ltd
018000
Easy Holdings Co Ltd
035810


Sungwoo Hitech Co Ltd
015750
VT GMP Co Ltd
018290


Icure Pharmaceutical Inc
175250
STCube Inc
052020


Vaxcell Bio Therapeutics
323990
Dream Us Co
060570


Binex Co Ltd
053030
Saramin HR Co Ltd
143240


AJu IB Investment Co Ltd
027360
Shin Heung Energy &amp; Electronics Co Ltd
243840


Woori Technology Investment Co., Ltd.
041190
Vitzrocell Co Ltd
082920


Gemvax &amp; Kael Co Ltd
082270
Hyundai BioLand Co Ltd
052260


Devsisters Corp
194480
Anterogen Co Ltd
065660


Tesna Inc
131970
NeoPharm Co., Ltd.
092730


Simmtech Co Ltd
222800
Novarex Co Ltd
194700


Park Systems Corp
140860
Caregen Co Ltd
214370


TSE Co Ltd
131290
Golfzon Co Ltd
215000


Hana Materials Inc
166090
Clio Cosmetics Co Ltd
237880


Fine Semitech Corp
036810
Korea Ratings Corporation
034950

Source: KRX

Passive flow estimationVaxcell Bio will enjoy the largest passive inflow estimated at ₩41.7B, followed by Gemvax with ₩32.5B. Still, Park Systems will likely welcome the biggest impact as its estimated passive inflow takes 4.53 days to buy. Gemvax and Fine Semitech follow with 4.24 days and 3.55 days to cover, respectively.








KOSDAQ 150 adds - passive inflow
Ticker
Estimated passive inflow
Days to buy


SamKang M&amp;T Co., Ltd
100090
₩19.0B
1.80x


Unison Co Ltd
018000
₩19.6B
2.83x


Sungwoo Hitech Co Ltd
015750
₩12.7B
2.52x


Icure Pharmaceutical Inc
175250
₩13.3B
0.99x


Vaxcell Bio Therapeutics
323990
₩41.7B
0.87x


Binex Co Ltd
053030
₩27.1B
0.30x


AJu IB Investment Co Ltd
027360
₩14.4B
0.43x


Woori Technology Investment Co., Ltd.
041190
₩20.2B
0.21x


Gemvax &amp; Kael Co Ltd
082270
₩32.5B
4.24x


Nanos Co Ltd
151910
₩12.9B
0.60x


Tesna Inc
131970
₩23.0B
2.11x


Simmtech Co Ltd
222800
₩18.6B
1.62x


Park Systems Corp
140860
₩27.1B
4.53x


TSE Co Ltd
131290
₩10.6B
2.03x


Hana Materials Inc
166090
₩20.0B
2.09x


Fine Semitech Corp
036810
₩18.0B
3.55x

Source: KRX &amp; FnGuide

The biggest loser will be Anterogen, likely suffering a passive outflow of ₩19.0B. Golfzon and STCube will also see a substantial amount go away as a result of the rebalancing. But Caregen should be the one to trade as it has the highest days-to-cover ratio at 8.55x. Korea Ratings and STCube also require 5~6 days to cover.








KOSDAQ 150 deletes - passive outflow
Ticker
Estimated passive outflow
Days to cover


HL Science Co Ltd
239610
₩4.0B
3.19x


Easy Holdings Co Ltd
035810
₩8.0B
1.09x


VT GMP Co Ltd
018290
₩7.5B
1.38x


STCube Inc
052020
₩11.0B
5.77x


Dream Us Co
060570
₩7.5B
3.22x


Saramin HR Co Ltd
143240
₩7.5B
5.46x


Shin Heung Energy &amp; Electronics Co Ltd
243840
₩6.0B
1.30x


Vitzrocell Co Ltd
082920
₩8.0B
4.97x


Hyundai BioLand Co Ltd
052260
₩10.5B
4.20x


Anterogen Co Ltd
065660
₩19.0B
1.64x


NeoPharm Co., Ltd.
092730
₩7.0B
2.29x


Novarex Co Ltd
194700
₩9.0B
1.71x


Caregen Co Ltd
214370
₩9.0B
8.55x


Golfzon Co Ltd
215000
₩11.5B
1.24x


Clio Cosmetics Co Ltd
237880
₩5.0B
0.79x


Korea Ratings Corporation
034950
₩4.0B
6.98x

Source: KRX &amp; FnGuide

Price performanceWe see a mixed performance among the additions on a year-to-date basis. Only 6 of the 16 additions have a positive YTD return.Again, we see a mixed performance among the deletions as well. Only 8 of the 16 deletions have a negative YTD return. Short interestApparently, short-selling actions haven't begun yet. HL Science has the highest ratio of short interest to float shares, but it is still 3% with 1.88 days to cover. STCube faces the longest days to cover at 2.74x. But many investors seem to be in line to short the deletes as most of them carry a pretty heavy loan balance, except for a few names.











KOSDAQ 150 deletes - short interest
Ticker
Short interest to float shares
Days to cover
Loan balance to float shares
Loan balance to ADTV
30-day average daily trade value


HL Science Co Ltd
239610
3.00%
1.88x
9.61%
6.00x
₩1.3B


Easy Holdings Co Ltd
035810
2.79%
0.35x
16.82%
2.12x
₩7.4B


VT GMP Co Ltd
018290
1.45%
0.37x
11.02%
2.78x
₩5.5B


STCube Inc
052020
2.58%
2.74x
6.62%
7.03x
₩1.9B


Dream Us Co
060570
1.00%
0.97x
4.36%
4.26x
₩2.3B


Saramin HR Co Ltd
143240
0.67%
0.84x
5.27%
6.63x
₩1.4B


Shin Heung Energy &amp; Electronics Co Ltd
243840
0.79%
0.40x
6.27%
3.17x
₩4.6B


Vitzrocell Co Ltd
082920
0.86%
0.69x
6.20%
4.95x
₩1.6B


Hyundai BioLand Co Ltd
052260
1.21%
1.43x
5.03%
5.91x
₩2.5B


Anterogen Co Ltd
065660
2.37%
0.43x
20.41%
3.69x
₩11.6B


NeoPharm Co., Ltd.
092730
1.94%
0.43x
26.48%
5.91x
₩3.1B


Novarex Co Ltd
194700
0.39%
0.21x
2.96%
1.59x
₩5.3B


Caregen Co Ltd
214370
0.23%
1.31x
1.68%
9.54x
₩1.1B


Golfzon Co Ltd
215000
0.65%
0.18x
6.84%
1.85x
₩9.2B


Clio Cosmetics Co Ltd
237880
0.69%
0.15x
6.08%
1.35x
₩6.3B


Korea Ratings Corporation
034950
2.35%
0.92x
9.01%
3.53x
₩0.6B

Source: KRX



KOSDAQ 150 Rebalancing Results: Changes, Passive Flow, & Trade Approach

South Korea

Woori Technology Investment Co., Ltd. is a venture capital firm focusing on venture capital financing for small and medium sized companies specialized in semiconductors and affiliated facilities, biotechnology, Internet business, software, and telecommunications.  The Company also offers consulting services, and management skills for venture companies.

Price Gauge
52-week Range	0.00 - 0.00
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Dividend (Yield)	0.00

Woori Technology Inv (041190 KS)

Woori Financials Placement - Almost a Clean-Up Although past Deals Haven’t Done Much

KDIC is looking to sell around half of its remaining stake in Woori Financial Group (WFG) to raise around US$160m. This is almost a clean-up trade.

Sumeet Singh

An Update on the Dunamu IPO & Sale of 200 Billion Won in the Private Market At 10 Trillion Won Value

In the past several days, it was noted in the local media that Dunamu is currently in the process of selling at least 200 billion won in the...

Douglas Kim

Korea Short 350 New Members: KOSPI 200 & KOSDAQ 150 Adds

We now have new members of the so-called Korea Short 350 for short-selling eligibility. They are new additions to KOSPI 200 and KOSDAQ 150. This...

Sanghyun Park

KOSDAQ150 Index Rebalance: 16 Changes & Large Turnover

There are 16 changes to the KOSDAQ150 index resulting in a one-way turnover of 7.04%. The impact on the exclusions is a lot higher than on the...

Brian Freitas

KOSDAQ 150 Rebalancing Results: Changes, Passive Flow, & Trade Approach

The KRX has just announced the results of the KOSPI 200 semi-annual rebalancing. This post examines the passive flow of the adds and deletes as...

Sanghyun Park

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52-week Range

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