Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

POSCO Holdings Inc. manufactures and distributes steel products. The Company produces crude steel, hot rolled steel, cold rolled steel, stainless steel, steel plates, wire rods, galvanized steel, electrical steel, and other related products. POSCO Holdings markets its products worldwide.

<ul>
<li>Despite feedback from ETF managers, KRX is moving forward with the simultaneous listing of 12 ETFs tracking the Value-Up Index on November 4th.</li>
<li>Government-Backed organizations are launching a 200 billion KRW Value-Up Fund for the Value-Up Index stocks, targeting an AUM boost to over 1 trillion KRW by year-end.</li>
<li>For new additions in the December rebalancing, the safest bets are POSCO Holdings, JB Financial Group, and HK inno.N.</li>
</ul>


Despite feedback from ETF managers, KRX is moving forward with the simultaneous listing of 12 ETFs tracking the Value-Up Index on November 4th.
Government-Backed organizations are launching a 200 billion KRW Value-Up Fund for the Value-Up Index stocks, targeting an AUM boost to over 1 trillion KRW by year-end.
For new additions in the December rebalancing, the safest bets are POSCO Holdings, JB Financial Group, and HK inno.N.


KRX's Final Call on Value-Up ETF Launch & December Rebalancing Preview

Doosan Robotics Inc. develops and manufactures industrial equipment. The Company manufactures robots, linear actuation devices, automated production equipment, and other products. Doosan Robotics conducts businesses in South Korea.

<ul>
<li>The big question is how to cash in on the dissenters' rights spread for Robotics. The main concern is cancellation risk, but the FSS doesn’t seem too negative on approval.</li>
<li>To sustain nuclear momentum, Enerbility needs heavy borrowing for facility investments, requiring a lower debt ratio. Offloading debt-heavy Bobcat is a move shareholders might support.</li>
<li>With NPS unlikely to ignore the government's nuclear push, Robotics' spread could narrow quickly. Despite cancellation risk and no hedge, the remaining juice makes an outright position worth considering.</li>
</ul>


The big question is how to cash in on the dissenters' rights spread for Robotics. The main concern is cancellation risk, but the FSS doesn’t seem too negative on approval.
To sustain nuclear momentum, Enerbility needs heavy borrowing for facility investments, requiring a lower debt ratio. Offloading debt-heavy Bobcat is a move shareholders might support.
With NPS unlikely to ignore the government's nuclear push, Robotics' spread could narrow quickly. Despite cancellation risk and no hedge, the remaining juice makes an outright position worth considering.


Doosan’s Tweaked Restructuring Play: My Take on Hitting Robotics' 13% Spread

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

<ul>
<li>Korea Zinc’s delisting daily trading volume cutoff is 20K, about 0.12% of the total. We might see volumes plummet, making it tough to maintain even that 20K level.</li>
<li>Keep an eye on trading opportunities; we have some time with delisting risks, but low trading volume could lead to being booted from the KOSPI 200 and Global Index.</li>
<li>This sell-off could spike short-term volatility and create great entry points for trading, especially after the court approved the buyback tender, denying MBK's injunction.</li>
</ul>


Korea Zinc’s delisting daily trading volume cutoff is 20K, about 0.12% of the total. We might see volumes plummet, making it tough to maintain even that 20K level.
Keep an eye on trading opportunities; we have some time with delisting risks, but low trading volume could lead to being booted from the KOSPI 200 and Global Index.
This sell-off could spike short-term volatility and create great entry points for trading, especially after the court approved the buyback tender, denying MBK's injunction.


Entry Opportunities from Delisting Risk Due to Korea Zinc's Post-Buyback Volume Drying Up

<ul>
<li>NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.</li>
<li>We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.</li>
<li>MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura's talks</li>
</ul>


NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.
We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.
MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura's talks


Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

Equity Capital Markets

K Bank Co. Ltd. operates banking businesses. The Company provides deposits, withdrawals, loans, and other services. K Bank conducts businesses in South Korea.

<ul>
<li>The institutional demand forecasts were much worse than expected, leading to the company’s blunt admission in the latest filing that the book-building flopped, prompting them to cancel the IPO.</li>
<li>Bankers NH and KB suggested an offering price below 8,500 KRW, but pre-IPO backers like Bain Capital and MBK strongly opposed, unhappy with shrinking proceeds, pushing for cancellation.</li>
<li>K-Bank plans to regroup and adjust the heavy 50% secondary share portion to retry the IPO in six months before their prelim review window expires.</li>
</ul>


The institutional demand forecasts were much worse than expected, leading to the company’s blunt admission in the latest filing that the book-building flopped, prompting them to cancel the IPO.
Bankers NH and KB suggested an offering price below 8,500 KRW, but pre-IPO backers like Bain Capital and MBK strongly opposed, unhappy with shrinking proceeds, pushing for cancellation.
K-Bank plans to regroup and adjust the heavy 50% secondary share portion to retry the IPO in six months before their prelim review window expires.


K-Bank's IPO Cancellation: What Led to This Move and Plan for a Comeback

I investigate special situations, pairs, and index rebalancing trades in Korea.

Sanghyun Park
Korea / Special Sits, Pairs, Index Rebalancing
• Clepsydra Capital

KRX's Final Call on Value-Up ETF Launch & December Rebalancing Preview

KRX made the final call on the Korea Value-Up ETF launch date, which is November 4th. This post also offers a sneak peek at the December...

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Doosan’s Tweaked Restructuring Play: My Take on Hitting Robotics' 13% Spread

This post breaks down Doosan’s revamped restructuring plan with Enerbility and Robotics, and shares my take on how to play Robotics' 13% spread on...

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Entry Opportunities from Delisting Risk Due to Korea Zinc's Post-Buyback Volume Drying Up

This post explores trading entry opportunities that could pop up from the delisting risk linked to Korea Zinc's trading volume drying up after the...

Sanghyun Park

Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

This post explains why we need a game plan for Korea Zinc's buyback tender offer, keeping that 20% proration risk in mind.

Sanghyun Park

K-Bank's IPO Cancellation: What Led to This Move and Plan for a Comeback

This post details K-Bank's decision to cancel its listing: background behind the decision and future plans for re-attempt.

Sanghyun Park