Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Kakao Corp - Exchangeable Bond Issue (Too High of an Exercise Price)?

Taekwang Industrial: Issuing EB Worth 319 Billion Won Based on Its Treasury Shares [Poor Governance]

LG Chem: To Issue Exchangeable Bond Worth US$1 Billion

Top 100 Korean Firms with Highest Treasury Shares as % of Market Cap (Tender Offer and M&A Targets)

Telcoware: Tender Offer To Take the Company Private

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>In this insight, we discuss the increasing popularity of EB issues with treasury shares as the base assets in Korea. There were seven EB issue announcements in Korea in June.</li>
<li>Going forward, more Korean companies are likely to issue EBs in the next several months, prior to the actual official changes in regulations of treasury shares in Korea.</li>
<li>These companies that issue EBs using treasury shares as underlying assets are prime targets of short selling/underperformance.</li>
</ul>


In this insight, we discuss the increasing popularity of EB issues with treasury shares as the base assets in Korea. There were seven EB issue announcements in Korea in June.
Going forward, more Korean companies are likely to issue EBs in the next several months, prior to the actual official changes in regulations of treasury shares in Korea.
These companies that issue EBs using treasury shares as underlying assets are prime targets of short selling/underperformance.


7 EB Issues in Korea in June 2025 - More Coming Until Govt Revises Treasury Shares Regulations