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

<ul>
<li>Hankyung, published an article that GIC (the Government of Singapore Investment Corp) is in the process of buying a stake in LG Energy from LG Chem.</li>
<li>Hankyung is one of the two most well-established economic daily newspapers in Korea, along with Maekyung. So, we must see that this article has considerable credibility.</li>
<li>GIC will likely close the deal before an additional passive flow event kicks in. LG Chem is also highly likely to prefer to close the deal as soon as possible.</li>
</ul>


Hankyung, published an article that GIC (the Government of Singapore Investment Corp) is in the process of buying a stake in LG Energy from LG Chem.
Hankyung is one of the two most well-established economic daily newspapers in Korea, along with Maekyung. So, we must see that this article has considerable credibility.
GIC will likely close the deal before an additional passive flow event kicks in. LG Chem is also highly likely to prefer to close the deal as soon as possible.


GIC Buying in LG Energy Solution? According to Hankyung

<ul>
<li>If short-selling accounts for more than 30% of total daily trade volume, it will be newly designated as an overheated short-selling stock, resulting in a one-day short-selling ban.</li>
<li>If the stock price falls by more than 5% on the day of the short-selling restriction, the restriction period is automatically extended by one more day.</li>
<li>We should pay attention to a possible increase in the trading volume of single-stock futures (SSF) due to short-selling bans, which can result in a more significant basis distortion.</li>
</ul>


If short-selling accounts for more than 30% of total daily trade volume, it will be newly designated as an overheated short-selling stock, resulting in a one-day short-selling ban.
If the stock price falls by more than 5% on the day of the short-selling restriction, the restriction period is automatically extended by one more day.
We should pay attention to a possible increase in the trading volume of single-stock futures (SSF) due to short-selling bans, which can result in a more significant basis distortion.


Revised Rules on Short Selling Restriction in Korea: Effective 3Q This Year

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO.</li>
<li>WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries</li>
<li>In this note, we talk about the recent refiling updates, peer comparison and valuations.</li>
</ul>


WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO.
WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries
In this note, we talk about the recent refiling updates, peer comparison and valuations.


WCP IPO - Peer Comparison and Valuation - Needs a Price Cut Not a Timeline Extension

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Sebit Chem had excellent IPO book building results. The demand ratio from the institutional investors was 1,671 to 1. </li>
<li>The IPO price has been determined at 35,000 won, which is higher than the high end of the IPO price range (25,000 won to 30,000 won).</li>
<li>Our base case valuation is implied market cap of 256 billion won or target price of 50,775 won per share (45% higher than the IPO price of 35,000 won). </li>
</ul>


Sebit Chem had excellent IPO book building results. The demand ratio from the institutional investors was 1,671 to 1. 
The IPO price has been determined at 35,000 won, which is higher than the high end of the IPO price range (25,000 won to 30,000 won).
Our base case valuation is implied market cap of 256 billion won or target price of 50,775 won per share (45% higher than the IPO price of 35,000 won). 


<ul>
<li>Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range. </li>
<li>Sebit Chem's business is now mainly composed of recycling waste rechargeable batteries and waste acid (mostly from semiconductor and LCD related products).</li>
<li>Our base case valuation is based on 23.7x P/E (comps' average) using our estimated net profit of 10.8 billion won in 2023. </li>
</ul>


Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range. 
Sebit Chem's business is now mainly composed of recycling waste rechargeable batteries and waste acid (mostly from semiconductor and LCD related products).
Our base case valuation is based on 23.7x P/E (comps' average) using our estimated net profit of 10.8 billion won in 2023. 


South Korea

LG Chem Ltd. is a chemical manufacturer. The Company's products include petrochemicals, plastic resins, and engineering plastics. LG Chem also produces industrial and electronic materials.

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LG Chem (051915 KS)

GIC Buying in LG Energy Solution? According to Hankyung

This post discusses the article published by Hankyung, a top-tier daily economic newspaper in Korea, about the ongoing negotiation of a block deal...

Sanghyun Park

Revised Rules on Short Selling Restriction in Korea: Effective 3Q This Year

This post details the new rules of short-selling restrictions announced today by the Financial Services Commission of Korea.

Sanghyun Park

WCP IPO - Peer Comparison and Valuation - Needs a Price Cut Not a Timeline Extension

WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO. In this note we talk about the refiling...

Sumeet Singh

Sebit Chem IPO Book Building Results

Sebit Chem had excellent IPO book building results. The demand ratio from the institutional investors was 1,671 to 1. The IPO price has been...

Douglas Kim

Sebit Chem Valuation Analysis

Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range.

Douglas Kim

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