In today’s briefing:
- SK Hynix Single-Stock ETF Scheduled for 3Q: Watch for a Repeat of the Samsung ETF Playbook
- Anthem Biosciences IPO: Lists Today; Index Inclusion Timing
- Kakao Pay’s Unique Quick-Flip EB: Watch Hedges & Rolls for Trading Angle
- Dickson Concept (113 HK): More Minority Teeth Bared As Another Scheme Fails
- Merger Arb Mondays (21 Jul) – ENN Energy, HEC Pharma, Shibaura, Abacus Storage, Insignia, Zeekr
- Asset Sales, Mergers, and Regulatory Developments: Key Updates from SSI Weekly Newsletter
SK Hynix Single-Stock ETF Scheduled for 3Q: Watch for a Repeat of the Samsung ETF Playbook
- When the SK Hynix ETF drops, expect meaningful physical buying shaking up supply-demand. Arb desks and alpha shops could pile in early, pushing the stock higher on flow.
- Going long Hynix near listing could pay off if demand mirrors Samsung’s—ETF flows, NAV arb, and delta hedging drove a 4% jump with a noticeable increase in program buying.
- Get in around the listing, watch flows, and take profits quickly. This is a short 2–3 day tactical play, with sharper front-running expected based on the Samsung ETF template.
Anthem Biosciences IPO: Lists Today; Index Inclusion Timing
- Anthem Biosciences raised INR 34bn (US$394m) in its IPO valuing the company at INR 320bn (US$3.7bn). The stock lists today.
- The grey market premium is INR 132/share, so the stock could list 23.2% higher than the IPO price. That will help in getting larger index flows.
- Anthem Biosciences could be added to one global index in November while the stock price gain will determine whether the stock is added to the other global index in December.
Kakao Pay’s Unique Quick-Flip EB: Watch Hedges & Rolls for Trading Angle
- This Kakao Pay EB deal is basically a quick block trade with immediate share exchange and a 90–102% strike price, letting them sell shares quietly with a built-in discount.
- Korea’s seen many EBs, but Kakao Pay’s quick-flip, discount deal is really unique. Watch hedging and roll activity—timing these can capture the sell-off and unwind bounce.
- Goldman’s sell-down triggers initial short covering and price bumps; new buyers then short, causing a second wave. Near exchange, more covering leads to choppy, drawn-out price swings.
Dickson Concept (113 HK): More Minority Teeth Bared As Another Scheme Fails
- Three for three. Three low-balled Hong Kong Offers, by way of Schemes, have now lapsed over the past ten weeks.
- Both Goldlion Holdings (533 HK) and Soundwill Holdings (878 HK) spectacularly failed back in May.
- Now Dickson Concepts Intl (113 HK) has followed suit. But the vote was (much) closer than it should have been.
Merger Arb Mondays (21 Jul) – ENN Energy, HEC Pharma, Shibaura, Abacus Storage, Insignia, Zeekr
- I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Mayne Pharma (MYX AU), ENN Energy (2688 HK), Yichang HEC Changjiang Pharma (1558 HK), Insignia Financial (IFL AU), Santos Ltd (STO AU), Smart Share Global (EM US).
- Lowest spreads: Bright Smart Securities (1428 HK), Humm Group (HUM AU), New World Resources (NWC AU), Hainan Meilan International Airport (357 HK), Avjennings Ltd (AVJ AU), ZEEKR (ZK US).
Asset Sales, Mergers, and Regulatory Developments: Key Updates from SSI Weekly Newsletter
- Next Science (NXS:AX) plans a large capital return after selling assets to Demetra Holdings, with a 13% spread to expected distribution.
- Cantor Equity Partners I (CEPO) merges with BSTR, becoming a major Bitcoin treasury, exiting with a 17% gain.
- Banxa’s (BNXA:V) spread widens to 30% amid shareholder sales and pending acquisition by OSL Group, with Genius Act tailwinds.
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