Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Highly experienced ex-Delta One trader with 17 years of experience trading arbitrage and related strategies across Asian markets.

Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd.

It is important to note that the information provided by Periscope Analytics is based on publicly available data and own knowledge, which has been gathered and synthesized from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions.

All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include, but are not limited to, company announcements, exchange filings, ETF and other passive investment vehicle holdings, and free float and volume data from third-party data providers. Periscope Analytics does not guarantee the accuracy and completeness of the forecasts, estimates and/or other information.

Pan-Asia Index Rebalances/ Events/ Delta One

KOSDAQ150 Index Rebalance Preview: 15 Potential Changes and Large Turnover

KOSDAQ150 Index Rebalance: Pullback Done; Buy Adds & Sell Deletes

KOSDAQ150 Index Rebalance Preview (June 2022): Lots of Changes Early in the Review Period

KOSDAQ150 Index Rebalance Preview: Inclusions Outperforming as Short Sell Ban Helps

KOSDAQ150 Index Rebalance: PIAM Transfer to KOSPI; Is Replaced by KPM Tech

KOSDAQ150 Index Rebalance Preview: Here Comes the Pullback

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Event-Driven

On 16 July, <a href="https://www.smartkarma.com/entities/green-cross-labcell-corp" target="_blank" data-smartkarma-citation="entities:33237:1" rel="noopener">Green Cross LabCell (144510 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-cell-corp" target="_blank" data-smartkarma-citation="entities:15811:1" rel="noopener">Green Cross Cell (031390 KS)</a> announced that they had entered into a definitive merger agreement to combine in an all stock transaction. For each share of <a href="https://www.smartkarma.com/entities/green-cross-cell-corp" target="_blank" data-smartkarma-citation="entities:15811:1" rel="noopener">Green Cross Cell (031390 KS)</a> held, shareholders would receive 0.4023542 shares of <a href="https://www.smartkarma.com/entities/green-cross-labcell-corp" target="_blank" data-smartkarma-citation="entities:33237:1" rel="noopener">Green Cross LabCell (144510 KS)</a>.On 13 September, shareholders approved the merger at the EGM and <a href="https://www.smartkarma.com/entities/green-cross-labcell-corp" target="_blank" data-smartkarma-citation="entities:33237:1" rel="noopener">Green Cross LabCell (144510 KS)</a> is the surviving entity. Both stocks will be suspended from 28 October and <a href="https://www.smartkarma.com/entities/green-cross-labcell-corp" target="_blank" data-smartkarma-citation="entities:33237:1" rel="noopener">Green Cross LabCell (144510 KS)</a> is expected to resume trading on 17 November.Both stocks are <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> constituents and the merger will open up a spot in the index.Last evening post market close, the KRX announced that <a href="https://www.smartkarma.com/entities/eubiologics-co-ltd" target="_blank" data-smartkarma-citation="entities:23739:1" rel="noopener">Eubiologics (206650 KS)</a> would be added to the index at the close of trading on 27 October. The stock was a high probability inclusion at the December rebalance and will now get index membership next week instead. This will also make the stock short-sell eligible from the open on 28 October.Passive funds benchmarked to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> will need to buy 1.29m shares (KRW 60.3bn; 1.1 days of ADV) of <a href="https://www.smartkarma.com/entities/eubiologics-co-ltd" target="_blank" data-smartkarma-citation="entities:23739:1" rel="noopener">Eubiologics (206650 KS)</a> at the close on 27 October.The impact on the Green Cross stocks will be a lot lower since we expect most trackers to swap their shares in <a href="https://www.smartkarma.com/entities/green-cross-cell-corp" target="_blank" data-smartkarma-citation="entities:15811:1" rel="noopener">Green Cross Cell (031390 KS)</a> for shares in <a href="https://www.smartkarma.com/entities/green-cross-labcell-corp" target="_blank" data-smartkarma-citation="entities:33237:1" rel="noopener">Green Cross LabCell (144510 KS)</a>, unless the price ratio deviates significantly from the merger ratio.

On 16 July, Green Cross LabCell (144510 KS) and Green Cross Cell (031390 KS) announced that they had entered into a definitive merger agreement to combine in an all stock transaction. For each share of Green Cross Cell (031390 KS) held, shareholders would receive 0.4023542 shares of Green Cross LabCell (144510 KS).On 13 September, shareholders approved the merger at the EGM and Green Cross LabCell (144510 KS) is the surviving entity. Both stocks will be suspended from 28 October and Green Cross LabCell (144510 KS) is expected to resume trading on 17 November.Both stocks are KOSDAQ 150 Index (KOSDQ150 INDEX) constituents and the merger will open up a spot in the index.Last evening post market close, the KRX announced that Eubiologics (206650 KS) would be added to the index at the close of trading on 27 October. The stock was a high probability inclusion at the December rebalance and will now get index membership next week instead. This will also make the stock short-sell eligible from the open on 28 October.Passive funds benchmarked to the KOSDAQ 150 Index (KOSDQ150 INDEX) will need to buy 1.29m shares (KRW 60.3bn; 1.1 days of ADV) of Eubiologics (206650 KS) at the close on 27 October.The impact on the Green Cross stocks will be a lot lower since we expect most trackers to swap their shares in Green Cross Cell (031390 KS) for shares in Green Cross LabCell (144510 KS), unless the price ratio deviates significantly from the merger ratio.

KOSDAQ150 Index Rebalance: Green Cross Merger & EuBiologics Addition