Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>After the market close today, it was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block deal.</li>
<li>The block deal price ranges are at 6 to 9 percent discount to current prices of Celltrion and Celltrion Healthcare.</li>
<li>We would take this take this deal due to settling of the accounting issue, more reasonable valuations, and sizeable block deal discount range. </li>
</ul>


After the market close today, it was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block deal.
The block deal price ranges are at 6 to 9 percent discount to current prices of Celltrion and Celltrion Healthcare.
We would take this take this deal due to settling of the accounting issue, more reasonable valuations, and sizeable block deal discount range. 


Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment

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>Temasek aims to raise around US$450m+ via selling 1.7% of <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <a href="https://www.smartkarma.com/entities/celltrion-healthcare" target="_blank" data-smartkarma-citation="entities:23641:1" rel="noopener">Celltrion Healthcare (091990 KS)</a> each.</li>
<li>We have looked at its two previous sell downs in 2018 and 2020.</li>
<li>In this note, we will run the deal through our ECM framework and talk about the recent updates.</li>
</ul>


Temasek aims to raise around US$450m+ via selling 1.7% of Celltrion Inc (068270 KS) and Celltrion Healthcare (091990 KS) each.
We have looked at its two previous sell downs in 2018 and 2020.
In this note, we will run the deal through our ECM framework and talk about the recent updates.


Celltrion and Celltrion Health Placement - Past Deals Have Been Mixed

Equity Bottom-Up

<ul>
<li>On 11 March 2022, the Celltrion Group was acquitted of intentional accounting fraud by the Korean financial authorities after more than four years of investigation.</li>
<li>This is likely to result in a major positive boost on the shares of Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm in the next several weeks.</li>
<li>We note that the decision about the Celltrion Group was announced on 11 March, one day after Yoon Suk-Yeol was declared to become the next President of South Korea.</li>
</ul>


On 11 March 2022, the Celltrion Group was acquitted of intentional accounting fraud by the Korean financial authorities after more than four years of investigation.
This is likely to result in a major positive boost on the shares of Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm in the next several weeks.
We note that the decision about the Celltrion Group was announced on 11 March, one day after Yoon Suk-Yeol was declared to become the next President of South Korea.


Celltrion Inc: Acquitted of Intentional Accounting Fraud by the Korean Financial Authorities

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>I filtered 42 buybacks currently in progress at KOSPI/KOSDAQ, which have a market cap of over 200 billion won.</li>
<li>Of these, 15 buybacks have their buyback volume exceeding 1% compared to SO, and buyback completion % is currently below 50% at present.</li>
<li>Among these, we should pay attention to those whose buybacks are being completed relatively early. These names also show a good correlation with stock prices.</li>
</ul>


I filtered 42 buybacks currently in progress at KOSPI/KOSDAQ, which have a market cap of over 200 billion won.
Of these, 15 buybacks have their buyback volume exceeding 1% compared to SO, and buyback completion % is currently below 50% at present.
Among these, we should pay attention to those whose buybacks are being completed relatively early. These names also show a good correlation with stock prices.


Buybacks in Progress at KOSPI/KOSDAQ: Stocks to Watch From a Trading Perspective

<ul>
<li>For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.</li>
<li>Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).</li>
<li>In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.</li>
</ul>


For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.
Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).
In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.


KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

South Korea

Celltrion Healthcare Co.,Ltd develops and manufactures pharmaceutical biologics and chemically synthesized drugs. The Company specializes in the development of drugs for breast cancer, arthritis, leukemia, psoriasis, human rabies prevention, and influenza. Celltrion Healthcare markets its products to customers internationally.

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Celltrion Healthcare (091990 KS)

Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment

It was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block...

Douglas Kim

Celltrion and Celltrion Health Placement - Past Deals Have Been Mixed

Temasek aims to raise around US$450m+ via selling 1.7% of Celltrion Inc (068270 KS) and Celltrion Healthcare (091990 KS) each.

Sumeet Singh

Celltrion Inc: Acquitted of Intentional Accounting Fraud by the Korean Financial Authorities

On 11 March 2022, the Celltrion Group was acquitted of intentional accounting fraud by the Korean financial authorities after more than four years...

Douglas Kim

Buybacks in Progress at KOSPI/KOSDAQ: Stocks to Watch From a Trading Perspective

This post screens those buybacks in progress at KOSPI/KOSDAQ, which are worth noting from a short-term trading perspective.

Sanghyun Park

KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

The KRX K-New Deal Index's screening period ended last Friday. This post updates the screening results and passive impacts.

Sanghyun Park

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