Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>In this insight, we discuss the potential inclusions and exclusions of the upcoming KOSDAQ 150 rebalance in May 2023.</li>
<li>The next round of KOSDAQ 150 rebalance will be announced in May and it will be effective as of end of May 2023.</li>
<li>Typically, the potential inclusions and exclusions to KOSDAQ 150 make their biggest moves in the one to three months prior to the rebalance announcements.</li>
</ul>


In this insight, we discuss the potential inclusions and exclusions of the upcoming KOSDAQ 150 rebalance in May 2023.
The next round of KOSDAQ 150 rebalance will be announced in May and it will be effective as of end of May 2023.
Typically, the potential inclusions and exclusions to KOSDAQ 150 make their biggest moves in the one to three months prior to the rebalance announcements.


Potential Inclusions & Exclusions in KOSDAQ 150 Rebalance in May 2023

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>WCP has the largest gap between the exercise and current prices (-16%). And its retail allocation is also the largest (5.44% of SO). In addition, it is subject to short-selling.</li>
<li>The deadline is January 2nd. A large-scale option exercise will be unavoidable if the share price does not exceed ₩54,000 by that date.</li>
<li>It is very likely that WCP's share price will experience strong downward pressure for a week after January 2nd. We need to consider a position setup that actively utilizes this.</li>
</ul>


WCP has the largest gap between the exercise and current prices (-16%). And its retail allocation is also the largest (5.44% of SO). In addition, it is subject to short-selling.
The deadline is January 2nd. A large-scale option exercise will be unavoidable if the share price does not exceed ₩54,000 by that date.
It is very likely that WCP's share price will experience strong downward pressure for a week after January 2nd. We need to consider a position setup that actively utilizes this.


Recent IPOs Carrying Putback Option in Korea: Market's Attention Is on WCP

Equity Capital Markets

<ul>
<li>Our base case valuation of Yunsung F&amp;C is target price of 53,360 won per share, which is 0.7% higher than the low end of the IPO price range.</li>
<li>Given the lack of upside, we would avoid this IPO.</li>
<li>Yunsung F&amp;C is one of the leaders in Korea in producing mixers for rechargeable battery materials for customers including LG Energy Solution and SK On. </li>
</ul>


Our base case valuation of Yunsung F&amp;C is target price of 53,360 won per share, which is 0.7% higher than the low end of the IPO price range.
Given the lack of upside, we would avoid this IPO.
Yunsung F&amp;C is one of the leaders in Korea in producing mixers for rechargeable battery materials for customers including LG Energy Solution and SK On. 


<ul>
<li>Yunsung F&amp;C is a leading maker of materials mixing equipment that are used in the rechargeable battery production.</li>
<li>The IPO price range is from 53,000 won to 62,000 won and offering amount is from 106 billion won to 124 billion won. The book building starts on 26 October. </li>
<li>According to the bankers' valuation, the expected IPO market cap range is from 423 billion won to 495 billion won. </li>
</ul>


Yunsung F&amp;C is a leading maker of materials mixing equipment that are used in the rechargeable battery production.
The IPO price range is from 53,000 won to 62,000 won and offering amount is from 106 billion won to 124 billion won. The book building starts on 26 October. 
According to the bankers' valuation, the expected IPO market cap range is from 423 billion won to 495 billion won. 


South Korea

Yunsung F&C Co., Ltd. wholesales and distributes mixing powder and liquid raw materials secondary battery manufacturing equipment. The Company wholesales and distributes pre mixers, storage containers, metal storage tanks, and other related products. Yunsung F&C also offers biopharmaceutical and food services.

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

Yunsung F&C (372170 KS)

Potential Inclusions & Exclusions in KOSDAQ 150 Rebalance in May 2023

We discuss the potential inclusions and exclusions of the upcoming KOSDAQ 150 rebalance in May 2023 which will be announced in May and it will be...

Douglas Kim

Recent IPOs Carrying Putback Option in Korea: Market's Attention Is on WCP

This post investigates the recent IPOs in Korea which carry putback options. In particular, it looks at WCP, which will likely experience a large...

Sanghyun Park

Yunsung F&C Valuation Analysis

Our base case valuation of Yunsung F&C is target price of 53,360 won per share, which is 0.7% higher than the low end of the IPO price range. Given...

Douglas Kim

Yunsung F&C IPO Preview

Yunsung F&C is a leading maker of materials mixing equipment that are used in the rechargeable battery production. The expected IPO market cap...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)