Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Big Hit: Fast Entry into KOSPI 200 & MSCI Korea

Big Hit: Fast Entry into KOSPI 200 & Lock-Up Expiries (Incl. RCPS)

KOSPI 200 Reshuffle Final Update: Incoming/Outgoing (8 Each) & Passive In/Outflow Estimates

Big Hit IPO: Immediate Real-World Float & Index Float (For KOSPI 200)

Big Hit IPO: Book-Building Results, Mood, & BeNX (WEVERSE) Ownership Issue

Big Hit Ent. IPO: Valuations & Exit Price Level

Equity Capital Markets

<p>Big Hit doubled the IPO price at the opening on this market debut day.</p><p>It then immediately hit the daily ceiling (30%). But the glory didn't last long. It now falls back to ₩278,000, only +3% from the opening price.</p><p>It sits on a market cap of ₩9.4T, taking the 31st spot on KOSPI.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Big Hit Ent. (₩B)"}'>Big Hit Ent. market debut performance (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"MC"}'>MC</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ranking"}'>Ranking</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"IPO price"}'>IPO price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":135000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=Pricing!R[-53]C[2]">₩135,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4569.23592}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">4,569.2</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Opening"}'>Opening</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":270000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩270,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9138.47184}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">9,138.5</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily high"}'>Daily high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":351000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩351,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11880.013392}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">11,880.0</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":278000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩278,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9409.241376}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">9,409.2</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":31}'>31</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>The final allocation number to overseas institutions was 1,431,617, representing 4.23% of SO and 20.08% of the IPO. The initial estimate was 1.1M. So, it may explain a more aggressive selling force than initially anticipated this morning.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Allocation by type (₩B)"}'>Allocation by type (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty. - initial"}'>Qty. - initial</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% - initial"}'>% - initial</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty. - final"}'>Qty. - final</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% - final"}'>% - final</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional"}'>Institutional</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4278000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R8C2*0.6">4,278,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">60.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4282309}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[0]C[-2]+(R[4]C[-2]-R[4]C[0])">4,282,309</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.600604347826087}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">60.06%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Local (est.)"}'>- Local (est.)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2850692}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-1]C[0]-R[1]C[0]">2,850,692</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.39981654978962133}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">39.98%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Overseas (est.)"}'><strong>- Overseas (est.)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1431617}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>1,431,617</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20078779803646563}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2"><strong>20.08%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Retail"}'>Retail</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1426000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R8C2*0.2">1,426,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">20.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1426000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[2]C[-2]-R[-3]C[0]-R[1]C[0]">1,426,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">20.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1426000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R8C2*0.2">1,426,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">20.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1421691}' data-sheets-numberformat='[null,2,"#,##0",1]'>1,421,691</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.19939565217391306}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">19.94%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7130000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R[-139]C[0]">7,130,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7130000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-5]C[0]+R[-2]C[0]+R[-1]C[0]">7,130,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">100.00%</td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Big Hit doubled the IPO price at the opening on this market debut day.It then immediately hit the daily ceiling (30%). But the glory didn't last long. It now falls back to ₩278,000, only +3% from the opening price.It sits on a market cap of ₩9.4T, taking the 31st spot on KOSPI.








Big Hit Ent. market debut performance (₩B)
Price
MC
Ranking


IPO price
₩135,000
4,569.2
-


Opening
₩270,000
9,138.5
-


Daily high
₩351,000
11,880.0
-


Current
₩278,000
9,409.2
31

Source: KRX

The final allocation number to overseas institutions was 1,431,617, representing 4.23% of SO and 20.08% of the IPO. The initial estimate was 1.1M. So, it may explain a more aggressive selling force than initially anticipated this morning.









Allocation by type (₩B)
Qty. - initial
% - initial
Qty. - final
% - final


Institutional
4,278,000
60.00%
4,282,309
60.06%


- Local (est.)
-
-
2,850,692
39.98%


- Overseas (est.)
-
-
1,431,617
20.08%


Retail
1,426,000
20.00%
1,426,000
20.00%


ESOP
1,426,000
20.00%
1,421,691
19.94%


Total
7,130,000
100.00%
7,130,000
100.00%

Source: DART



Big Hit First Trading Day: Market Reception & Immediate-Term Ceiling Price

HYBE

Big Hit First Trading Day: Market Reception & Immediate-Term Ceiling Price