In today’s briefing:
- KRX’s Revised CFD Oversight Guidelines & Ongoing Suspicious Incidents
- ALT Co IPO Bookbuilding Results Analysis
- Korean Holdcos Vs Opcos Gap Trading Opportunities in 3Q 2023
KRX’s Revised CFD Oversight Guidelines & Ongoing Suspicious Incidents
- The important point is that the regulations also incorporate a provision mandating the disclosure of the actual end traders’ identities when brokerages engage in CFD transactions disguised as proprietary trading.
- Recent suspicious incidents raise concerns because they are carried out through brokerages’ proprietary trading practices, making them relatively more difficult for local regulatory authorities to detect and monitor.
- We need to closely monitor the market’s abnormal volatility following the strengthened new rules on CFDs and carefully consider the setup for responding to these changes.
ALT Co IPO Bookbuilding Results Analysis
- ALT’s IPO price has been determined a 25,000 won, which is 22% higher than the high end of the IPO price range.
- A total of 1,937 institutional investors participated in the IPO offering with a competition demand ratio of 1,836 to 1.
- Our base case valuation of ALT is market cap of 299 billion won or 33,365 won per share, which represents 33% higher than the IPO price range of 25,000 won.
Korean Holdcos Vs Opcos Gap Trading Opportunities in 3Q 2023
- In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 3Q 2023.
- Of the 38 pair trades, 22 of them involved holdcos outperforming opcos YTD and 16 of them involved opcos outperforming holdcos in the same period.
- We highlight 38 pair trades that involve Korean holdcos and opcos.
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