In today’s briefing:
- StubWorld: More Partial Offers In The Hanwha Group Complex
- Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer
- CMES AI Robotics IPO Preview
StubWorld: More Partial Offers In The Hanwha Group Complex
- After the Kim family-backed Hanwha Energy completed Hanwha Corporation‘s Partial Offer last month, Hanwha Galleria (452260 KS)‘s VP Kim Dong-seon has now launched a Partial Offer for 17.5% in Galleria.
- Preceding my comments on Hanwha are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer
- The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.
- For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.
- Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.
CMES AI Robotics IPO Preview
- CMES AI Robotics is getting ready to complete its IPO on KOSDAQ in October. The expected IPO price is 20,000 won to 24,000 won.
- CMES provides intelligent robot solutions that combine artificial intelligence (AI) and three-dimensional (3D) vision technology. CMES’s core technologies include 3D vision sensors and image processing algorithms.
- Robotics related IPOs have generated enormous interest in Korea. Although CMES is a small cap name, this robotics related IPO is also likely to garner high interest as well.
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