In today’s briefing:
- Trading LG Chem’s Large-Scale EB Issuance Backed by LG Energy Shares
- A Tender Offer of 6.2% Stake in KC Tech by KC Co
- Initial Thoughts on the Sono International IPO
Trading LG Chem’s Large-Scale EB Issuance Backed by LG Energy Shares
- With a $2B deal expected, LG Chem will likely issue before end June as the 2023 EB’s put date nears and redemption pressure builds amid strained financials.
- Two years ago, hedge shorting spiked post-issuance and post-exchange start, but price impact was mild—only 3% and 6% drops—likely due to strong sector sentiment then.
- Sector sentiment’s turned sharply, so more aggressive price action is likely post-EB announcement. Timing is tricky, but the setup’s worth watching closely.
A Tender Offer of 6.2% Stake in KC Tech by KC Co
- After the market close today, it was reported that KC Co (029460 KS) plans to conduct a tender offer 35 billion won worth of KC Tech (281820 KS) shares.
- KC Co plans to conduct a tender offer of 1.283 million shares (6.2% stake) of KC Tech shares for 20 days from 23 April to 12 May.
- The tender offer price for KC Tech is 27,100 won, which is 13.4% higher than the closing price on 22 April.
Initial Thoughts on the Sono International IPO
- Sono International, the largest resort operator in Korea, is getting ready to complete its IPO in 3Q 2025.
- Company is aiming for valuation of about 3 trillion won. Treasury shares accounted for 35.93% of total outstanding shares at the end of 2024.
- One of the noticeable aspects of the company’s income statement is that although the company’s sales growth was modest from 2019 to 2024, its operating margin growth has been spectacular.
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