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>This December’s KOSPI 200 shuffle will highlight stocks likely to see strong passive flows from changes in float rates.</li>
<li>Ecopro Materials sees BRV offloading shares, weakening its major shareholder status. Korea Zinc might mirror the Hankook &amp; Company scenario, bundling both families' stakes and treasury for non-float rate calculations.</li>
<li>The passive impacts may be small compared to constituent changes, but less dilution from proactive positioning means the price impact could be more noticeable as the effective date approaches.</li>
</ul>


This December’s KOSPI 200 shuffle will highlight stocks likely to see strong passive flows from changes in float rates.
Ecopro Materials sees BRV offloading shares, weakening its major shareholder status. Korea Zinc might mirror the Hankook &amp; Company scenario, bundling both families' stakes and treasury for non-float rate calculations.
The passive impacts may be small compared to constituent changes, but less dilution from proactive positioning means the price impact could be more noticeable as the effective date approaches.


KRX Float Rates for KOSPI 200 Constituents as of Today: Watch the Float Change Stocks

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price range.</li>
<li>A total of 2,216 institutions participated in the IPO demand forecast and the competition rate was 734 to 1.</li>
<li>According to our valuation analysis, it suggests a base case implied price of 40,230 won, which is 18% higher than the IPO price. </li>
</ul>


The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price range.
A total of 2,216 institutions participated in the IPO demand forecast and the competition rate was 734 to 1.
According to our valuation analysis, it suggests a base case implied price of 40,230 won, which is 18% higher than the IPO price. 


The Born Korea IPO Book Building Results Analysis

<ul>
<li> According to our valuation analysis, it suggests an implied price of 34,365 won, which is 27% higher than the high end of the IPO price range. </li>
<li>We estimate The Born Korea to generate sales of 467.7 billion won (up 13.1% YoY) and operating profit of 31.4 billion won (up 22.8% YoY) in 2024.</li>
<li>We believe a premium to comps' valuation is appropriate for The Born Korea mainly due to its higher sales growth, higher ROE, stronger balance sheet, and higher profit margins. </li>
</ul>


 According to our valuation analysis, it suggests an implied price of 34,365 won, which is 27% higher than the high end of the IPO price range. 
We estimate The Born Korea to generate sales of 467.7 billion won (up 13.1% YoY) and operating profit of 31.4 billion won (up 22.8% YoY) in 2024.
We believe a premium to comps' valuation is appropriate for The Born Korea mainly due to its higher sales growth, higher ROE, stronger balance sheet, and higher profit margins. 


<ul>
<li>The Born Korea is getting ready to complete its IPO in Korea in November. The total IPO offering is expected to range from 69 billion won to 84 billion won. </li>
<li>Based on the bankers' valuation, the expected market cap of the company ranges from 357 billion won to 419 billion won. </li>
<li>The Born Korea was founded by Baek Jong-Won, the most famous celebrity chef in Korea. </li>
</ul>


The Born Korea is getting ready to complete its IPO in Korea in November. The total IPO offering is expected to range from 69 billion won to 84 billion won. 
Based on the bankers' valuation, the expected market cap of the company ranges from 357 billion won to 419 billion won. 
The Born Korea was founded by Baek Jong-Won, the most famous celebrity chef in Korea. 


<ul>
<li>The momentum for getting ahead on positions with KOSPI 200 rebalancing is holding steady. With around 60% of the screening period behind us, it’s time to start preparing our positions.</li>
<li>The current rebalancing's screened changes have a relatively lower price volatility, suggesting a stronger chance for more aggressive position build-up now compared to previous rebalancings.</li>
<li>Trading volumes vary greatly among these changes, affecting their passive impact sizes. Consider using different weights in basket trading instead of equal weights.</li>
</ul>


The momentum for getting ahead on positions with KOSPI 200 rebalancing is holding steady. With around 60% of the screening period behind us, it’s time to start preparing our positions.
The current rebalancing's screened changes have a relatively lower price volatility, suggesting a stronger chance for more aggressive position build-up now compared to previous rebalancings.
Trading volumes vary greatly among these changes, affecting their passive impact sizes. Consider using different weights in basket trading instead of equal weights.


KOSPI 200 December Rebalancing: Key Points to Watch for in Proactive Position Build-Up

South Korea

Daesang Corporation manufactures food seasonings, fermentations, sweeteners, starches, coffee, fodder, and bulk pharmaceutical ingredients.  The Company also constructs commercial buildings, infrastructures, and environmental facilities.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Daesang Corporation (001680 KS)

KRX Float Rates for KOSPI 200 Constituents as of Today: Watch the Float Change Stocks

KOSPI 200 December Rebalancing: Constituent changes are as predicted, but it's important to pay attention to the stocks with float changes.

Sanghyun Park

The Born Korea IPO Book Building Results Analysis

The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price...

Douglas Kim

The Born Korea IPO Valuation Analysis

According to our valuation analysis, it suggests an implied price of 34,365 won, which is 27% higher than the high end of the IPO price range.

Douglas Kim

The Born Korea IPO Preview

Founded by Baek Jong-Won, the most famous celebrity chef in Korea, The Born Korea is getting ready to complete its IPO in Korea. The total IPO...

Douglas Kim

KOSPI 200 December Rebalancing: Key Points to Watch for in Proactive Position Build-Up

This post previews the KOSPI 200 December rebalancing and discusses key points for proactive position build-up, now that 60% of the screening...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)