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

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Potential Trades on HMG Stocks Amid Hyundai Eng IPO: Loan/Short Int Flow & 20D MA σ

Hyundai Mobis - Restarts Its Big Share Buyback Program in 4Q 2020

Hyundai Mobis Share Buyback: Execution Detail & Trade Idea

Hyundai Mobis/Motor At -2.3σ: Entry Point for Range Trading

Korea Stock Market Monthly Recap #52 (September 2020)

Event-Driven

Hyundai Mobis resumes buyback starting today (October 5).Mobis announced the 3-year shareholder return plan from 2019 to 2021, including a ₩1T buyback and ₩1.1T dividends.This time, the target is 0.96M ordinary shares, a bit less than the last one (1.3M shares for ₩323B). It represents 1.03% of the SO. At the previous close, it amounts to ₩226B, of which 28% will get canceled.The lock-up of the remaining bought-back shares is six months.It is the second buyback since the announcement. So, we will have one or two more buybacks by the end of 2021 for the remaining ₩450B to hit the ₩1T target.





Overview

Name
HYUNDAI MOBIS CO., LTD.


Ticker
012330


Shares outstanding
95,058,668


- Common
95,054,694


- Pref
3,974


Treasury shares
1,617,535


- Common
1,617,535


- Pref
0


Target qty.
983,000


- % of SO
1.03%


- Common
983,000


- % of total common shares
1.03%


- % of common treasury shares
60.77%


- Pref
0


- % of total pref shares
-


- % of pref treasury shares
-


Treasury shares after buyback
2,600,535


- % of SO
2.74%


- % of common
2.74%


- % of pref
-


Total value
₩226,090,000,000


- Common
₩226,090,000,000


- Pref
₩0


Market cap
₩21,863,493,640,000


- % of market cap
1.03%


Equity
₩23,500,426,547,075


- % of equity
0.96%


Cancellation
₩62,500,000,000


- % of total buyback
27.64%


- Qty.
271,739


Lock up for the remaining
Six months

Source: DART

The execution is until December 28, which gives us a total of 60 trading days.The daily limit is 130,000, a quarter of the 1M ADT, 11% of the target, and 0.1% of the SO.If it buys an equal quantity each day, 16K will be the number, representing 3.7% of the DTV.Hyundai Motor Securities will execute the trading, and it will buy all shares openly in the market.






Execution

Buyback begins
2020. 10. 5


Buyback ends
2020. 12. 28


Bankers
Hyundai Motor Securities


Method
Openly in the market (no off-hours block trade)


Daily limit
110,050


- % of 1M DTV
25.00%


- % of target qty.
11.20%


- % of the total common shares
0.12%


Number of trading days
60


Average daily equal buyback qty.
16,383


- % of 1M DTV
3.71%


- % of target qty.
1.67%


- % of the total common shares
0.02%


Value of average daily equal buyback qty.
₩3,768,166,667


Market cap
₩21,863,493,640,000


ADTV
₩101,511,420,000

Source: DART &amp; Google Finance


The treasury shares now account for 1.7%. The buyback/cancellation will put it at 2.5% of the SO. The major shareholders' stake will rise to 31.3% after the cancellation.








Shareholding
Before
After


Kia Motors Corporation
17.28%
17.33%


Chung Mong-koo
7.13%
7.15%


Hyundai Steel Co
5.79%
5.81%


Hyundai Glovis Co Ltd
0.69%
0.69%


Chung Eui-sun
0.32%
0.32%


- Major shareholder
31.22%
31.31%


Korea NPS
11.90%
11.93%


Mirae Asset
5.08%
5.10%


Treasury shares
1.70%
2.46%

Source: DART &amp; FnGuide



Hyundai Mobis Share Buyback: Terms & Trading Dynamics