In today’s briefing:
- Samsung SDI Capital Raise: A Mega Deal Rarely Seen in the Local Market
- [Quiddity Index Mar25] KOSPI 200 Leaderboard Jun25: 6 ADDs and 6 DELETEs
- Samsung SDI: Announces a 2 Trillion Won Rights Offering Capital Raise
- Coupang Inc.: Geographic Expansion & Market Penetration Driving Our Optimism!
- DN Solutions IPO Preview
Samsung SDI Capital Raise: A Mega Deal Rarely Seen in the Local Market
- The discount’s tight, but this near-2-trillion-won raise is a rare mega-deal in Korea, despite the issuance ratio below 20%.
- Samsung Electronics is in for 150 billion won, but plenty of supply remains. A smooth clearance? Unlikely. This could drive stock rights costs lower as price discovery unfolds.
- The optimal approach is to wait for a decline in rights prices and assess hedge costs through single stock futures (or TRS, if doable), given the shorting restrictions.
[Quiddity Index Mar25] KOSPI 200 Leaderboard Jun25: 6 ADDs and 6 DELETEs
- KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
- In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2025.
- We expect six ADDs and six DELs for the KOSPI 200 index during this index rebal event based on the latest available data.
Samsung SDI: Announces a 2 Trillion Won Rights Offering Capital Raise
- On 14 March, Samsung SDI (006400 KS) announced a 2 trillion won (US$1.4 billion) rights offering capital raise plan.
- Samsung SDI’s 2 trillion won capital raise is likely to have a near-term negative impact on the company’s share price.
- We are negative on Samsung SDI’s rights offering capital raise mainly due to shares dilution. We also remain concerned that weak demand for EVs globally could last longer.
Coupang Inc.: Geographic Expansion & Market Penetration Driving Our Optimism!
- Coupang’s recent performance in the fourth quarter of 2024 illustrates both advancements and challenges within the company.
- On the positive side, Coupang’s efforts in expanding its logistical and technological capabilities have yielded significant results.
- Over the past 12 months, the company reported nearly a $6 billion increase in net revenues, reflecting a 23% growth in constant currency, after excluding the acquisition of Farfetch and the gains from a fulfillment center fire insurance.
DN Solutions IPO Preview
- DN Solutions is getting ready to complete its IPO in Korea in May 2025. The IPO price range is from 65,000 won to 89,700 won.
- The book building for the institutional investors will last from 22 to 28 April. The expected IPO offering amount is from 1.14 trillion won to 1.57 trillion won.
- The IPO price range is based on DN Solutions’ net profit of 317.4 billion won, P/E of 25.2x, and IPO discount rates of 29.1% to 48.6%.
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