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

Local Retail-Led Momentum Trading Today, Preemptively Reflecting Kakao Bank's Earnings Release

Netmarble Sold Kakao Games Shares in Block Deals: Overhang Risk Vs. Index Float Improvement

Netmarble Sells More Kakao Bank Shares Worth 133 Billion Won - Overhang Concerns

The Blockchain Delusion. A (Mostly) Bearish Investment Thesis.

Gravity Works As WeWork Doesn't; Now Plan B

Clepsydra Capital

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

Event-Driven

<h2>Block deals regulatory filing summary</h2><p>It turned out that Netmarble's next target was the remaining 0.34% of its unlocked Kakao Bank shares. The company put out a regulatory filing after the market closed yesterday.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/226/139/original/Screen+Shot+2021-08-25+at+6.09.44+PM.png?1629929669" class="editor-image img-responsive" data-smartkarma-image-id="226139"></figure></section><p><strong>Netmarble revealed that it had sold 1</strong><strong>,619,591 shares through block deals during the pre-market trading on August 25 for ₩133.1B, suggesting a deal price per share of ₩82,200.</strong> This represents a 3.75% discount to the close price on August 24 and an 8.46% discount to the close price on August 23.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Block deal details"}'>Block deal details</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shares sold"}'>Number of shares sold</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1619591}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,619,591</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total deal value"}'>Total deal value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":133.1303802}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩133.1B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Deal price per share"}'><strong>Deal price per share</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":82199.99999999999}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-1]C[0]*1000000000/R[-2]C[0]"><strong>₩82,200</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Bank on August 24"}'><strong> - Discount to the price on August 24</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.03747072599531633}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[1]-R4C2)/R[0]C[1]"><strong>3.75%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Bank on August 23"}'><strong> - Discount to the price on August 23</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.08463251670378635}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[1]-R4C2)/R[0]C[1]"><strong>8.46%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Bank on August 20"}'> - Discount to the price on August 20</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09670329670329686}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[1]-R4C2)/R[0]C[1]">9.67%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX KIND"}'>Source: KRX KIND</td></tr>
</tbody>
</table><p>The following is the number of Kakao Bank stock purchases by investor type on August 25. Netmarble's counterparties can be seen as foreign institutional investors in that there is only "Foreign" other than local retail that has purchased more than 1.6M on this day. Of course, this is by no means unusual.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/226/142/original/Screen+Shot+2021-08-25+at+6.30.30+PM.png?1629930722" class="editor-image img-responsive" data-smartkarma-image-id="226142"></figure></section>

Block deals regulatory filing summaryIt turned out that Netmarble's next target was the remaining 0.34% of its unlocked Kakao Bank shares. The company put out a regulatory filing after the market closed yesterday.Netmarble revealed that it had sold 1,619,591 shares through block deals during the pre-market trading on August 25 for ₩133.1B, suggesting a deal price per share of ₩82,200. This represents a 3.75% discount to the close price on August 24 and an 8.46% discount to the close price on August 23.





Block deal details

Number of shares sold
1,619,591


Total deal value
₩133.1B


Deal price per share
₩82,200


 - Discount to the price on August 24
3.75%


 - Discount to the price on August 23
8.46%


 - Discount to the price on August 20
9.67%

Source: KRX KIND

The following is the number of Kakao Bank stock purchases by investor type on August 25. Netmarble's counterparties can be seen as foreign institutional investors in that there is only "Foreign" other than local retail that has purchased more than 1.6M on this day. Of course, this is by no means unusual.

Netmarble Again Sold Kakao Bank: Real-World Float Change & Additional Stake Sale Possibility

KakaoBank

Netmarble Again Sold Kakao Bank: Real-World Float Change & Additional Stake Sale Possibility