In today’s briefing:
- Hankook Tire & Technology to Become the Controlling Shareholder of Hanon Systems
- HD Hyundai Marine Solution IPO Trading – Strong Demand and Peers Continue to Rise
- Trading Implications Of Intra-Day Naked Short Selling Rule Tightening in Korea
Hankook Tire & Technology to Become the Controlling Shareholder of Hanon Systems
- On 3 May, it was reported that Hankook Tire & Technology agreed to purchase a 25% in Hanon Systems for 1.37 trillion won from Hahn & Co private equity firm.
- After this deal, Hankook Tire & Technology will own a controlling 50.5% stake in Hanon Systems.
- We have a negative view on Hankook Tire & Technology’s additional purchase of Hanon Systems, which has experienced a declining profit margins in the past several years.
HD Hyundai Marine Solution IPO Trading – Strong Demand and Peers Continue to Rise
- HD Hyundai Marine Solution (443060 KS) had raised around US$539m in its Korean IPO, after pricing the deal at the top end of KRW83,400/share.
- HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship’s life cycle after the delivery of a new ship.
- In this note, we will talk about the demand for the deal and other trading dynamics.
Trading Implications Of Intra-Day Naked Short Selling Rule Tightening in Korea
- Aggressively curbing naked short selling may enhance flow conditions for Value-Up stocks by reducing market turnover.
- Liquidity decline may worsen KOSDAQ’s underperformance relative to KOSPI stocks due to its higher vulnerability to liquidity fluctuations.
- We should also monitor price impact from phased short selling in the absence of intra-day naked short selling post-regulation tightening.
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