In today’s briefing:
- SM Entertainment: Tender Offer Allocation Ratios Announced
- Target & Timing for Flow Trading Position Setup in NICE I&S KOSPI Transfer Event
- W-Scope IPO Lock-Up – US$300m Worth of Shares to Come Free
SM Entertainment: Tender Offer Allocation Ratios Announced
- Korea Investment & Securities announced the final competition rate for the tender offer of SM Entertainment by Kakao Group (8,333,641 shares of SM Entertainment at 150,000 won per share).
- The competition ratio of the tender offer was 2.2655436 to 1. Accordingly, the allocation ratio was set at 44.1395170%.
- At the current price of 95,100 won, SM Entertainment’s shares are undervalued by about 25% to 45% over the next 6-12 months, in our view.
Target & Timing for Flow Trading Position Setup in NICE I&S KOSPI Transfer Event
- NICE I&S will likely complete the transfer schedule in early May, meaning that an ad-hoc change may occur before the regular rebalancing of the KOSDAQ 150 in June.
- If this gets completed before SK Oceanplant’s transfer listing schedule, the top reserved issue in NICE’s GICS sector (INDUSTRIALS) will be included. It is Sun Kwang (003100 KS).
- As evidenced in the case of LX Semicon, we should set up a preemptive position for potential ADDITION at the time of the T or T-1 KRX corporate action announcement.
W-Scope IPO Lock-Up – US$300m Worth of Shares to Come Free
- WCP (393890 KS) raised around US$314m via in its Korean IPO. The stock was listed on 30th Sep 2022, its six-month lockup will expire soon.
- WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
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