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.

Equity Capital Markets

HD Hyundai Infracore / Equity Capital Markets

<h2>Regulatory filing summary</h2><p>In a regulatory filing, Doosan Infracore unveiled its plan for a capital increase of about ₩800B after the close of the market yesterday.</p><p>At the same time, Doosan Infracore conducts a par-value capital reduction without any refund. So, the par value of an ordinary stock is reduced from ₩5,000 to ₩1,000. The ratio of this capital reduction is 80%.</p><div class="content-highlight">
<p>Below is the regulatory filing at DART.</p>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/226/111/original/Screen+Shot+2021-08-25+at+2.45.22+PM.png?1629917573" class="editor-image img-responsive" data-smartkarma-image-id="226111"></figure></section>
</div><section class="figure"><p><strong>Here are the key points of the regulatory filing:</strong></p></section><ul><li>
<strong>Capital reduction: Doosan Infracore will seek shareholder approval for the capital reduction at the extraordinary general shareholders meeting scheduled for September 10. </strong>→ A capital reduction is subject to shareholder approval at the general meeting of shareholders.</li></ul><div class="content-highlight"><p>This is a par-value capital reduction without any refund. Reducing the par value without any refund simply moves capital to earnings surplus to avoid capital impairment while the total issued shares remain unchanged. Just like the previous case of Samsung Heavy Industries, Doosan Infracore also needs this capital reduction to prevent capital impairment.</p></div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital reduction details"}'>Capital reduction details</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"After capital reduction"}'>After capital reduction</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ordinary shares"}'><strong>Ordinary shares</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":78309228}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>78,309,228</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":78309228}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>78,309,228</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Par value"}'><strong>Par value</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩5,000"}'><strong>₩5,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩1,000"}'><strong>₩1,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital"}'><strong>Capital</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":391.54614}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>₩391.5B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":78.309228}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>₩78.3B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Record date"}'>Record date</td>
<td colspan="2" rowspan="1" style="text-align: right;" data-sheets-value='{"1":3,"3":44481}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2021. 10. 12</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholder meeting"}'>Shareholder meeting</td>
<td colspan="2" rowspan="1" style="text-align: right;" data-sheets-value='{"1":3,"3":44449}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2021. 09. 10</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trade suspension"}'>Trade suspension</td>
<td colspan="2" rowspan="1" style="text-align: right;" data-sheets-value='{"1":2,"2":"2021. 10. 08 ~ 10. 25"}'>2021. 10. 08 ~ 10. 25</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><ul><li>
<strong>Doosan Infracore plans to decide on the details of a capital increase at the board of directors after obtaining shareholder approval for the capital reduction on September 10. </strong>→ A capital increase is subject to the resolution of the board of directors.</li></ul>

Regulatory filing summaryIn a regulatory filing, Doosan Infracore unveiled its plan for a capital increase of about ₩800B after the close of the market yesterday.At the same time, Doosan Infracore conducts a par-value capital reduction without any refund. So, the par value of an ordinary stock is reduced from ₩5,000 to ₩1,000. The ratio of this capital reduction is 80%.
Below is the regulatory filing at DART.

Here are the key points of the regulatory filing:
Capital reduction: Doosan Infracore will seek shareholder approval for the capital reduction at the extraordinary general shareholders meeting scheduled for September 10. → A capital reduction is subject to shareholder approval at the general meeting of shareholders.This is a par-value capital reduction without any refund. Reducing the par value without any refund simply moves capital to earnings surplus to avoid capital impairment while the total issued shares remain unchanged. Just like the previous case of Samsung Heavy Industries, Doosan Infracore also needs this capital reduction to prevent capital impairment.







Capital reduction details
Current
After capital reduction


Ordinary shares
78,309,228
78,309,228


Par value
₩5,000
₩1,000


Capital
₩391.5B
₩78.3B


Record date
2021. 10. 12


Shareholder meeting
2021. 09. 10


Trade suspension
2021. 10. 08 ~ 10. 25

Source: DART


Doosan Infracore plans to decide on the details of a capital increase at the board of directors after obtaining shareholder approval for the capital reduction on September 10. → A capital increase is subject to the resolution of the board of directors.

Yes, We Can Short Doosan Infracore for Arb Setup Even Now with Offering Pre-Announcement