Daily BriefsSouth Korea

Daily Brief South Korea: Korea Stock Exchange Kospi Index, WCP, SOCAR and more

In today’s briefing:

  • News Analysis on ESG Incidents of 2000+ South Korean Companies (2021)
  • WCP Passive Flow Analysis: KOSDAQ 150 Early Entry & Local Battery ETFs
  • Socar IPO: Slightly Revises IPO Prospectus Details

News Analysis on ESG Incidents of 2000+ South Korean Companies (2021)

By Emily Jiwon Kim

  • Our analysis of 23,419 news articles on 2,699 companies reported between Jan 1 and Dec 31, 2021, reveals that a total of 623 companies had incidents related to ESG topics.
  • 167 companies (83.5%) among the 200 largest listed companies (KOSPI 200) were involved in ESG incidents.
  • Of the 23,419 news articles covering ESG incidents, 17,245 were related to KOSPI 200 companies, accounting for 73.6%.

WCP Passive Flow Analysis: KOSDAQ 150 Early Entry & Local Battery ETFs

By Sanghyun Park

  • WCP will enter the KOSDAQ 150 with a passive inflow of about 530K shares, 1.5% of SO, at the close on December 8.
  • WCP will be added to the TIGER ETF on October 14 with a passive inflow of about 345K shares, 1.0% of SO, at the close on October 14.
  • From a flow trading perspective, the flow volume is certainly substantial enough to design a passive flow trading setup in conjunction with the lockup release schedule.

Socar IPO: Slightly Revises IPO Prospectus Details

By Douglas Kim

  • SOCAR revised its IPO prospectus. What has changed is the date when the book building for the institutional investors starts (4 August). 
  • The IPO price range remains at 34,000 won to 45,000 won. The IPO base offering size is also between US$120 million to US$159 million. 
  • We maintain our base case valuation of Socar (target price of 27,967 won), which is 18% lower than the low end of the IPO price range of 34,000 won. 

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