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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Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<p>NCsoft has announced that it would buy back 300,000 ordinary shares openly in the market. The buyback period is from September 8th to December 7th. This is a total of 60 trading days. The bankers are NH and Mirae Asset.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/228/368/original/Screen+Shot+2021-09-07+at+10.59.53+AM.png?1631026818" class="editor-image img-responsive" data-smartkarma-image-id="228368"></figure></section><p>This is 1.37% of the total issued stock and 5.80% of the equity. When this treasury stock buyback is completed, the treasury stock ratio will rise to 7.50% of the total number of issued shares.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Buyback overview"}'>Target volume</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}'><strong>Target volume as a % of SO</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.013664922081247801}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-7]C[0]"><strong>1.37%</strong></td>
</tr>
<tr>
<td>Target value at the last close as a % of equity</td>
<td style="text-align: right;">5.80%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Treasury shares after buyback"}'>Treasury shares after buyback</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1646583}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-11]C[0]+R[-8]C[0]">1,646,583</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}'><strong>Treasury shares as a % of SO</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0750014279843575}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-15]C[0]"><strong>7.50%</strong></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>The maximum daily stock buyback volume is 79,976 shares. This is 0.35x 30-day ADTV, which is 26.66% of the target volume. The daily equal-weighted buyback volume is 5,000 shares, representing 0.02x ADTV, which is 1.66% of the target volume.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Execution"}'>Execution</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily limit"}'>Daily limit</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":79976}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>79,976</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of 30-day average daily trade volume"}'><strong>- x 30-day ADTV</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3467944409513692}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-38]C[0], "volumeavg")'><strong>0.35x</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily equal-weighted buyback qty."}'>Daily equal-weighted buyback volume</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5000}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-35]C[0]/R[-1]C[0]">5,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of 30-day average daily trade volume"}'><strong>- x 30-day ADTV</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.021681156906532533}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-43]C[0], "volumeavg")'><strong>0.02x</strong></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

NCsoft has announced that it would buy back 300,000 ordinary shares openly in the market. The buyback period is from September 8th to December 7th. This is a total of 60 trading days. The bankers are NH and Mirae Asset.This is 1.37% of the total issued stock and 5.80% of the equity. When this treasury stock buyback is completed, the treasury stock ratio will rise to 7.50% of the total number of issued shares.





Target volume

Target volume as a % of SO
1.37%


Target value at the last close as a % of equity
5.80%


Treasury shares after buyback
1,646,583


Treasury shares as a % of SO
7.50%

Source: DART

The maximum daily stock buyback volume is 79,976 shares. This is 0.35x 30-day ADTV, which is 26.66% of the target volume. The daily equal-weighted buyback volume is 5,000 shares, representing 0.02x ADTV, which is 1.66% of the target volume.





Execution

Daily limit
79,976


- x 30-day ADTV
0.35x


Daily equal-weighted buyback volume
5,000


- x 30-day ADTV
0.02x

Source: DART



NCsoft Buyback & Short Squeezing Possibilities

NCSOFT Corp

NCsoft Buyback & Short Squeezing Possibilities