Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

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 announced a massive rights offering worth 2.5 trillion won. The expected rights offering price is 670,000 won (57% lower than the closing price on 29 October).</li>
<li>The company plans to use 2.3 trillion won in debt repayment and 135 billion won for working capital as well as help to alleviate the risk of delisting. </li>
<li><em><strong>This rights offering symbolizes a display of "Korea Discount" at its worst and likely to put continued negative pressure on Korea Zinc's share price in the coming weeks. </strong></em></li>
</ul>


Korea Zinc announced a massive rights offering worth 2.5 trillion won. The expected rights offering price is 670,000 won (57% lower than the closing price on 29 October).
The company plans to use 2.3 trillion won in debt repayment and 135 billion won for working capital as well as help to alleviate the risk of delisting. 
This rights offering symbolizes a display of "Korea Discount" at its worst and likely to put continued negative pressure on Korea Zinc's share price in the coming weeks. 


Korea Zinc - Rights Offering of 2.5 Trillion Won Is a Display Of "Korea Discount" At Its Worst

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.

<ul>
<li>Today's FSS briefing warned Choi, favoring MBK. It looks likely Korea Zinc will retract the rights offering, or we might see a rare showdown with the FSS.</li>
<li>Will Korea Zinc's stock rally? Uncertain. The recent price jump was driven mainly by short squeezes. Volatility seems unlikely now with many shorts cleared out.</li>
<li>We should watch the shareholder vote, as open market buying continues, keeping Korea Zinc's stock tight. We should expect potential swings due to passive outflows.</li>
</ul>


Today's FSS briefing warned Choi, favoring MBK. It looks likely Korea Zinc will retract the rights offering, or we might see a rare showdown with the FSS.
Will Korea Zinc's stock rally? Uncertain. The recent price jump was driven mainly by short squeezes. Volatility seems unlikely now with many shorts cleared out.
We should watch the shareholder vote, as open market buying continues, keeping Korea Zinc's stock tight. We should expect potential swings due to passive outflows.


FSS Briefing on Korea Zinc: Likely to Retract Rights Offering; Set up Trades for Passive Outflows

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

Arealink Co.,Ltd. provides real estate leasing services.  The Company also operates real estate businesses including storage and parking space rental. Arealink also develops and constructs custom-made and rental buildings.

<ul><li>Arealink's Self-Storage segment saw revenue grow 12.3% YoY, with segment profit rising 15.8% YoY, driven by facility openings.</li><li>Land Rights Consolidation segment experienced revenue growth of 16.9% YoY, but operating profit fell 8.8% YoY due to lower-margin transactions.</li><li>Other Operational Services segment reported a 9.0% YoY revenue increase, with operating profit rising 29.2% YoY, supported by higher occupancy rates.</li></ul>

Arealink's Self-Storage segment saw revenue grow 12.3% YoY, with segment profit rising 15.8% YoY, driven by facility openings.Land Rights Consolidation segment experienced revenue growth of 16.9% YoY, but operating profit fell 8.8% YoY due to lower-margin transactions.Other Operational Services segment reported a 9.0% YoY revenue increase, with operating profit rising 29.2% YoY, supported by higher occupancy rates.

Arealink Co Ltd (8914 JP): Q3 FY12/24 flash update

US-EU Index Rebalances / Quantitative Researcher, Ortex

Dimitris Ioannidis

US-EU Index Rebalances / Quantitative Researcher

Global Financial Data and Analytics Platform

Ortex

ORTEX is a global financial data and analytics platform providing real-time securities lending and short interest data, index rebalance data, holdings and insider transactions, trading signals, corporate actions and news,  stock machine learning and factor scores and other analytics. The majority of the data are downloadable and accessible through APIs.

Viking Holdings Ltd operates as a holding company. The Company, through its subsidiaries, specializes in providing offshore recreational travel services by cruise vessel. Viking Holdings serves customers worldwide.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/viking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:44043:1" rel="noopener">Viking Holdings (VIK US)</a> is expected to fail the fcap threshold at the November 2024 review despite a 10% boost in free float from the secondary offering. </li>
<li>
<a href="https://www.smartkarma.com/entities/viking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:44043:1" rel="noopener">Viking Holdings (VIK US)</a> is forecasted to pass eligibility and get added in North America's small-cap segment at the December 2024 review.</li>
<li>Following the Secondary Offering in September 2024, the company now passes voting rights and is expected to get added in the US Top 1000 index at the June 2025 review.</li>
</ul>



Viking Holdings (VIK US) is expected to fail the fcap threshold at the November 2024 review despite a 10% boost in free float from the secondary offering. 

Viking Holdings (VIK US) is forecasted to pass eligibility and get added in North America's small-cap segment at the December 2024 review.
Following the Secondary Offering in September 2024, the company now passes voting rights and is expected to get added in the US Top 1000 index at the June 2025 review.


Viking Holdings (VIK US): Cruising Into US & Global Index Post-Secondary Offering

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

<ul>
<li>As overseas investors continue to account for 30% of shareholdings in the TSE, domestic institutional investors are the main reliance for listed companies to secure voting rights.</li>
<li>Companies with immature management kaizen activities are eager to avoid a change of mind in voting by domestic institutional investors until they are able to generate sufficient corporate value.</li>
<li>By investing 95% of its domestic equity assets in passive funds, the GPIF has not required many companies to make tough management improvements</li>
</ul>


As overseas investors continue to account for 30% of shareholdings in the TSE, domestic institutional investors are the main reliance for listed companies to secure voting rights.
Companies with immature management kaizen activities are eager to avoid a change of mind in voting by domestic institutional investors until they are able to generate sufficient corporate value.
By investing 95% of its domestic equity assets in passive funds, the GPIF has not required many companies to make tough management improvements


Will the Strategy of Trying to Buy Time by Negotiating Directly with Asset Owners Work?

Rights Issues
Corporate rights issuance analysis

Korea Zinc - Rights Offering of 2.5 Trillion Won Is a Display Of "Korea Discount" At Its Worst

MBK Partners Chairman Kim Byung-Joo revealed for the first time on why he is pushing to acquire Korea Zinc. According to MBK Chairman, he mentioned...

Douglas Kim

FSS Briefing on Korea Zinc: Likely to Retract Rights Offering; Set up Trades for Passive Outflows

This post covers today’s FSS briefing on the Korea Zinc rights offering and explores the reasons behind the likely cancellation. It also highlights...

Sanghyun Park

Arealink Co Ltd (8914 JP): Q3 FY12/24 flash update

Arealink's Self-Storage segment saw revenue grow 12.3% YoY, with segment profit rising 15.8% YoY, driven by facility openings. Land Rights...

Shared Research

Viking Holdings (VIK US): Cruising Into US & Global Index Post-Secondary Offering

VIK US is expected to pass public voting rights eligibility following the ~$1bn Secondary Offering and get added in December 2024 and June 2025.

Dimitris Ioannidis

Will the Strategy of Trying to Buy Time by Negotiating Directly with Asset Owners Work?

I would like to discuss the issues on the September 14 Nikkei Shimbun article, “GPIF and Other Public Pensions and Keidanren to Engage in Dialogue...

Metrical Inc

Korea Zinc - Rights Offering of 2.5 Trillion Won Is a Display Of "Korea Discount" At Its Worst

MBK Partners Chairman Kim Byung-Joo revealed for the first time on why he is pushing to acquire Korea Zinc. According to MBK Chairman, he mentioned...

Douglas Kim

FSS Briefing on Korea Zinc: Likely to Retract Rights Offering; Set up Trades for Passive Outflows

This post covers today’s FSS briefing on the Korea Zinc rights offering and explores the reasons behind the likely cancellation. It also highlights...

Sanghyun Park

Arealink Co Ltd (8914 JP): Q3 FY12/24 flash update

Arealink's Self-Storage segment saw revenue grow 12.3% YoY, with segment profit rising 15.8% YoY, driven by facility openings. Land Rights...

Shared Research

Viking Holdings (VIK US): Cruising Into US & Global Index Post-Secondary Offering

​VIK US is expected to pass public voting rights eligibility following the ~$1bn Secondary Offering and get added in December 2024 and June 2025.

Dimitris Ioannidis

Will the Strategy of Trying to Buy Time by Negotiating Directly with Asset Owners Work?

I would like to discuss the issues on the September 14 Nikkei Shimbun article, “GPIF and Other Public Pensions and Keidanren to Engage in Dialogue...

Metrical Inc

VIK US is expected to pass public voting rights eligibility following the ~$1bn Secondary Offering and get added in December 2024 and June 2025.