Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Doosan Heavy Industries & Doosan Fuel Cell (Rights Offerings of $1.1 Billion & $0.3 Billion)

Doosan Fuel Cell Big Block Deal Placement

Doosan Fuelcell: Block Deals Outcome on Rights Offer

Equity Capital Markets

Doosan Enerbility / Equity Capital Markets

Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer.
The offering volume is 121.5M shares, which is a 48% capital increase rate. 20% will go to the ESOP. So, per share allocation for the stockholders is 0.38398.
At the indicative price of ₩10,700, the total value is ₩1.3tril.
<figure class="editor-figure mceNonEditable">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/359/original/21.png?1599412716" class="editor-image img-responsive" data-smartkarma-image-id="157359"></figure>
</figure>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/344/original/2.png?1599411337" class="editor-image img-responsive" data-smartkarma-image-id="157344"></figure>
October 12 will be introductory pricing, with the ex-rights falling on October 14.
Then, we will trade subscription rights on November 18~24. The final pricing will be November 30, followed by subscription on December 3 and payment on December 11.
Listing will be December 24.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/345/original/3.png?1599411350" class="editor-image img-responsive" data-smartkarma-image-id="157345"></figure>
We have a usual 20% discount for the pricing.
Just, this is a massive offering (47.99% capital increase), so the level of overall discount is higher, suggesting that potential room for short-term trading can be larger.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/346/original/5.png?1599411379" class="editor-image img-responsive" data-smartkarma-image-id="157346"></figure>

Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer.
The offering volume is 121.5M shares, which is a 48% capital increase rate. 20% will go to the ESOP. So, per share allocation for the stockholders is 0.38398.
At the indicative price of ₩10,700, the total value is ₩1.3tril.




October 12 will be introductory pricing, with the ex-rights falling on October 14.
Then, we will trade subscription rights on November 18~24. The final pricing will be November 30, followed by subscription on December 3 and payment on December 11.
Listing will be December 24.

We have a usual 20% discount for the pricing.
Just, this is a massive offering (47.99% capital increase), so the level of overall discount is higher, suggesting that potential room for short-term trading can be larger.


Doosan Heavy Industries Rights Offer: Terms & Situation