Daily BriefsIPOs and Placements

Equity Capital Markets: Helen’s International Holding, Hyundai Heavy Industries, Doosan Infracore and more

In today’s briefing:

  • Helens International Holdings IPO First Day Trading
  • Hyundai Heavy Industries Listing: Allocation, Lockups, & Float Schedule
  • Doosan Infracore Rights Offer Walkthrough & Thoughts on Arb Trading Setups

Helens International Holdings IPO First Day Trading

By Oshadhi Kumarasiri

  • The largest pub chain in China, Helen’s International Holding (9869 HK) priced its IPO at the midpoint of the offer range (HK$19.77 per share). Shares started trading on the Hong Stock exchange today at HK$23.05 per share and currently trades at HK$ 24.15 per share 22.2% above the IPO price.
  • The pub chain has attracted decent interest from investors as the Hong Kong offer and international offer were oversubscribed by around 30.8x and 25.6x respectively.
  • What was already an expensive stock was made even more expensive after listing gains of 22% on the first trading session. We think IPO investors should look to cash in the listing gains as early as possible as Helen’s could give away most of the listing gains over the course of the next 3-4 weeks.

Hyundai Heavy Industries Listing: Allocation, Lockups, & Float Schedule

By Sanghyun Park


Hyundai Heavy Industries fixed the offering price at ₩60,000, the upper end of the indicative price band. As a result, it raises ₩1.08T through this IPO, with a market cap of ₩5.33T. HHI’s bookbuilding result far exceeded expectations. I expected it to be successful to some extent, but I didn’t know it would elicit such a warm response. With this level of success, we may even aim for KOSPI 200 Fast Entry after listing.

As the competition rate for institutional subscriptions recorded 1,471 to 1, it was again close to a historical record. HHI also raised more than ₩56T in the margin in retail subscriptions. This is the largest margin since Kakao Bank’s listing.

By investor typeInstitution%Demand%
1. Local publicly raised funds58735.95%6,851,608,00037.70%
2. Local brokerages/investment advisories402.45%462,405,0002.54%
3. Local pensions, funds managing proprietary assets, banks, and insurance companies27616.90%3,149,173,00017.33%
4. Local – Other (discretionary investment companies, mostly local hedge funds)38223.39%4,873,338,00026.81%
5. Foreign (foreign IPO funds & hedge funds)1328.08%705,850,8623.88%
6. Foreign – Other (mostly local hot money)21613.23%2,132,703,00011.73%
Subscription rate1,835.87
Source: DART

On average, about half went to the pricing above the upper end (including Unspecified). More importantly, all institutions have virtually written prices above 75% of the upper end. In particular, foreign institutions have made a quite aggressive pricing.

Institution typeAbove the upper end + Unspecified% of total demandsHolding tendencies
1. Local publicly raised funds52.30%19.80%Long-term
2. Local brokerages/investment advisories30.00%0.71%Short-term
3. Local pensions, funds managing proprietary assets, banks, and insurance companies43.84%7.71%Long-term
4. Local – Other (discretionary investment companies, mostly local hedge funds)38.22%10.29%Short-term
5. Foreign (foreign IPO funds & hedge funds)96.97%3.81%Long or short-term, depends
6. Foreign – Other (mostly local hot money)50.93%6.24%Short-term
Source: DART


Some forfeited shares occurred in the ESOP, which went entirely to retail investors. Institutional allocation stood at 55%. Most of the institutional allocation results were taken by institutions with a long-term holding tendency.

Allocation by typeInitial allocation% of the total offering% of post-IPO SO
1. Local publicly raised funds19.36%3.93%
2. Local Br/IA0.58%0.12%
3. Local pension, etc.13.78%2.79%
4. Local – Other1.89%0.38%
5. Foreign19.40%3.93%
6. Foreign – Other0.00%0.00%
Source: DART

In particular, a pretty decent institutional composition was created by giving about 35% of the institutional allocation to foreigners. This 35% is not a level that we can see as a significantly higher allocation ratio for foreign investors than in past cases. Nevertheless, this foreign ownership ratio is high enough to stabilize short-term investor sentiment. At the same time, almost no allocation was made to local hot money, which is highly likely to engage in short-term trading.

By investor typeHolding tendenciesApplicationsAllocated, % of the offering
Local publicly raised fundsLong-term37.70%35.20%
Local brokerages/investment advisoriesShort-term2.54%1.05%
Local pensions, funds managing proprietary assets, banks, and insurance companiesLong-term (pensions) & short-term (proprietary asset managers)17.33%25.05%
Local – Other (mostly discretionary investment companies – local hedge funds))Mainly, short-term26.81%3.43%
Foreign (foreign IPO funds & hedge funds)Depends3.88%35.27%
Foreign – Other (mostly local hot money)Short-term11.73%0.00%
Source: DART

Doosan Infracore Rights Offer Walkthrough & Thoughts on Arb Trading Setups

By Sanghyun Park


This is again an offering to the stockholders with forfeited shares going to a public offering. A total of 115 million new shares are issued, and the tentative issuance price is set at ₩6,950. So, the total issuance size is ₩0.8T.

TargetA public offering of forfeited shares after offering to stockholders
Offering volume115,107,913
Preliminary price₩6,950
Preliminary value₩799,999,995,350
Oversubscription privilege20.00%
BankerKB, NH, KIS, Mirae Asset, Hana, Samsung, DB, Daishin, & Hi
– Underwriting typeStandby
Source: DART

The tentative issuance price of ₩6,950 was calculated based on this formula: Average [1M VWAP, 1W VWAP, 1D Close], as of September 9, 2021.


Currently, the number of issued common stock is 79.5 million. So the capital increase rate is a whopping 144.75%, and the dilution per share is 59.14%. Since 20% is allocated to the ESOP, the allocation ratio to stockholders is 1.1589273.

Offering volume115,107,913
Capital increase144.75%
Total shares after rights offer194,629,850
ESOP allocation23,021,582
– %20.00%
Stockholder allocation92,086,331
– %80.00%
Per-share allocation1.1589273
Source: DART


This event’s schedule has pretty much nothing unusual, except for the addition of the short-selling ban period. Oh, there is one more thing. This event takes an unusually long time. We have like one and half months gap from now to the first round pricing. It is probably to avoid schedule conflict with another major rights offering, Samsung Heavy Industries, whose payment date falls on November 5th.

So, Doosan Infracore’s first-round pricing will be November 11. And ex-rights are on November 3rd, with the subscription rights trading period falling on November 24~30. The issuer will confirm the final price on December 6th, and the listing date is December 28th.

BOD meeting2021. 09. 10
Preliminary pricing2021. 11. 01
Ex-rights date2021. 11. 03
Record date2021. 11. 04
Subscription rights trade beginning2021. 11. 24
Subscription rights trade ending2021. 11. 30
Final pricing2021. 12. 06
Stockholder subscription2021. 12. 08
Public subscription2021. 12. 10
Payment2021. 12. 16
Listing2021. 12. 28
Short restriction begins2021. 09. 13
Short restriction ends2021. 12. 03

Source: DART

The short-selling ban period is from September 13 to December 3rd. Investors who short-sell during this period cannot participate in this capital increase unless they purchase the same quantity they shorted within this period.

There seems to be a lot of confusion about this. According to the official documents of the FSC, it is not that only the quantity sold short during the short-selling ban period cannot participate in the rights issue. If we short-sell even one share during this period, we will be completely banned from participating in the rights issue. Then, the only exception is to buy more than the number of stocks short-sold during this period.


The procedure for determining the offering price is as follows, again nothing unusual here. The discount rate of this event is 20%, which is the usual discount rate for local rights offerings. Just, this is a bit less aggressive than the 15% discount rate of Samsung Heavy Industries announced last month. Given the current market liquidity, it seems to me that Doosan Infracore could have gone for a little more aggressive discount, say 15%.

1st roundRP × (1 – 20%) / [1 + (144.75% × 20%)]
– Reference price (RP)Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]
– Reference date2021. 11. 01
Ex-rights base price[RP + (1st × 144.75%)] / (1 + 144.75%)
– Reference price (RP)Previous close
– Reference date2021. 11. 03
2nd roundRP × (1 – 20%)
– Reference price (RP)Min [Close, Avg (Close, 1W VWAP)]
– Reference date2021. 12. 06
FinalMax [Min (1st, 2nd), 3D VWAP × 60%]
– Reference date2021. 12. 06
Discount rate20.00%
Capital increase rate144.75%
Source: DART

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