Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>The EGM for Korea Zinc (010130 KS) is expected to be held on 23 January 2025. Accordingly, the shareholder registry is expected to be closed around 19 - 23 December. </li>
<li>By better analyzing the timeline of the M&amp;A of SM Entertainment, we may be able to get better clues to Korea Zinc's price movement in the next several weeks. </li>
<li>Notice the double top share price formation of SM Entertainment in 2023 versus the potential double top formation of Korea Zinc in 2024. These trading formations look eerily similar.</li>
</ul>


The EGM for Korea Zinc (010130 KS) is expected to be held on 23 January 2025. Accordingly, the shareholder registry is expected to be closed around 19 - 23 December. 
By better analyzing the timeline of the M&amp;A of SM Entertainment, we may be able to get better clues to Korea Zinc's price movement in the next several weeks. 
Notice the double top share price formation of SM Entertainment in 2023 versus the potential double top formation of Korea Zinc in 2024. These trading formations look eerily similar.


A Comparison of Korea Zinc's M&A in 2024 Vs SM Entertainment's M&A in 2023 in the 9th Inning

Equity Capital Markets

<ul>
<li>In this insight, we review the major rights offerings/capital raises that were announced in Korea in 2024.</li>
<li>In general, the major rights offerings/capital raises tend to result in lower share prices one month, three months, and over a longer time frame. </li>
<li>There are some exceptions. Peptron and ABL Bio experienced higher share prices even after their capital raise announcements, especially after a longer time frame (3 months or more).</li>
</ul>


In this insight, we review the major rights offerings/capital raises that were announced in Korea in 2024.
In general, the major rights offerings/capital raises tend to result in lower share prices one month, three months, and over a longer time frame. 
There are some exceptions. Peptron and ABL Bio experienced higher share prices even after their capital raise announcements, especially after a longer time frame (3 months or more).


A Review of Rights Offerings/Capital Raise Announcements in Korea in 2024

<ul>
<li><em><strong>There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025. </strong></em></li>
<li>Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).</li>
<li>FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.</li>
</ul>


There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025. 
Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).
FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.


A Proxy Fight for Korea Zinc in January 2025

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>Korea Zinc's free float is dropping from 52% to 31%, a 21%p cut.</li>
<li>Despite rising volume, retail still dominates. With this trend continuing, the 80,000-share sell volume is unlikely to get buried without triggering noticeable price moves.</li>
<li>Ahead of big one-day flow events, shorts are loaded, causing a dip. On rebalance day, traders buy back, triggering a bounce. This event is likely to follow the same pattern.</li>
</ul>


Korea Zinc's free float is dropping from 52% to 31%, a 21%p cut.
Despite rising volume, retail still dominates. With this trend continuing, the 80,000-share sell volume is unlikely to get buried without triggering noticeable price moves.
Ahead of big one-day flow events, shorts are loaded, causing a dip. On rebalance day, traders buy back, triggering a bounce. This event is likely to follow the same pattern.


Flow Trading Setup Triggered by Korea Zinc’s 21%p Float Rate Cut in KOSPI 200

<ul>
<li>Lee Bok-hyun, head of the Financial Supervisory Service, unexpectedly voiced concerns about MBK winning Korea Zinc's management battle, catching everyone off guard.</li>
<li>The key question is how Michael ByungJu Kim will handle government pressure, with MBK possibly aligning with the opposition if the Democratic Party pushes for commercial law reform.</li>
<li>Korea Zinc now becomes a proxy war over governance reform. Watch MBK’s political stance, as it could drive the stock higher, especially if Michael teams up with the opposition.</li>
</ul>


Lee Bok-hyun, head of the Financial Supervisory Service, unexpectedly voiced concerns about MBK winning Korea Zinc's management battle, catching everyone off guard.
The key question is how Michael ByungJu Kim will handle government pressure, with MBK possibly aligning with the opposition if the Democratic Party pushes for commercial law reform.
Korea Zinc now becomes a proxy war over governance reform. Watch MBK’s political stance, as it could drive the stock higher, especially if Michael teams up with the opposition.


Korea Zinc Saga Turning into a Comedy Show: MBK’s Speculative Move & How It’s Shaping Our Trades

South Korea

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.

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Korea Zinc (010130 KS)

A Comparison of Korea Zinc's M&A in 2024 Vs SM Entertainment's M&A in 2023 in the 9th Inning

December 18th is the last day to secure voting rights for Korea Zinc. MBK claims intrinsic value of Korea Zinc is 14 trillion won (680,000 won per...

Douglas Kim

A Review of Rights Offerings/Capital Raise Announcements in Korea in 2024

We review the major rights offerings/capital raises that were announced in Korea in 2024. In general, the major rights offerings/capital raises...

Douglas Kim

A Proxy Fight for Korea Zinc in January 2025

MBK mentioned that Korea Zinc should conduct a stock split instead of a capital increase to increase shares trading liquidity. MBK stated that if...

Douglas Kim

Flow Trading Setup Triggered by Korea Zinc’s 21%p Float Rate Cut in KOSPI 200

This post takes a closer look at the flow trading setup created by the 21%p float rate cut of Korea Zinc in the KOSPI 200 and how it’s likely to...

Sanghyun Park

Korea Zinc Saga Turning into a Comedy Show: MBK’s Speculative Move & How It’s Shaping Our Trades

Korea Zinc confirmed its EGM for January 23rd, 9 a.m. Shareholder cutoff is December 20th, with ex-rights on December 19th. Last chance to secure...

Sanghyun Park

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