Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Equity Capital Markets

Doosan Fuel Cell   / Equity Capital Markets

The major shareholder put up a total of 19.7% stake in block deals.But only half of the target went through despite a hefty discount. That is, 5.6M shares out of 10.9M found buyers. 4M went to overseas institutions, and the remaining 1.6M found local investors.The offering price was fixed at the lower end of the suggested price band (₩35,465), so the final discount was 18% to the previous closing price.The major shareholder is now left with 5.3M shares (9.6%).<table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Overview"}'>Block deal terms &amp; outcome</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44109}' data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}'>October 5, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target"}'>Target</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Doosan Fuel Cell Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Doosan Fuel Cell Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"336260"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="336260"'>336260</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Seller"}'>Seller</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"The major shareholder"}'>The major shareholder</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offer size"}'>Offer size</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10927270}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>10,927,270</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}'>- % of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.19691000744840959}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-3]C[0], "shares")'>19.69%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value"}'>Value (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":387.53563055}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-2]C[0]*R[4]C[0]/1000000000">387.5</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Last close"}'>Last close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":43250}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩43,250</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Indicative price - ceiling"}'>Indicative price - ceiling</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":37628}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩37,628</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to last close"}'>- % to the last close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1299884393063584}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-2]C[0]-R[-1]C[0])/R[-2]C[0]">13.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Indicative price - Floor"}'>Indicative price - Floor</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35465}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩35,465</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to last close"}'>- % to the last close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.18}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-4]C[0]-R[-1]C[0])/R[-4]C[0]">18.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final price"}'>Final price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35465}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩35,465</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final quantity (sold)"}'>Final quantity (sold)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5600000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>5,600,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Overseas"}'>- Overseas</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4000000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>4,000,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Local"}'>- Local</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1600000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]"> 1,600,000</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: Hankyung &amp; FnGuide"}'>Source: Hankyung &amp; FnGuide</td></tr>
</tbody>
</table>

The major shareholder put up a total of 19.7% stake in block deals.But only half of the target went through despite a hefty discount. That is, 5.6M shares out of 10.9M found buyers. 4M went to overseas institutions, and the remaining 1.6M found local investors.The offering price was fixed at the lower end of the suggested price band (₩35,465), so the final discount was 18% to the previous closing price.The major shareholder is now left with 5.3M shares (9.6%).





Block deal terms &amp; outcome

Date
October 5, 2020


Target
Doosan Fuel Cell Co Ltd


Ticker
336260


Seller
The major shareholder


Offer size
10,927,270


- % of SO
19.69%


Value (₩B)
387.5


Last close
₩43,250


Indicative price - ceiling
₩37,628


- % to the last close
13.00%


Indicative price - Floor
₩35,465


- % to the last close
18.00%


Final price
₩35,465


Final quantity (sold)
5,600,000


- Overseas
4,000,000


- Local
 1,600,000

Source: Hankyung &amp; FnGuide



Doosan Fuelcell: Block Deals Outcome on Rights Offer

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

It was announced after the market close today that <a href="https://www.smartkarma.com/entities/doosan-fuel-cell-co-ltd" target="_blank" data-smartkarma-citation="entities:29252:1" rel="noopener">Doosan Fuel Cell Co Ltd (336260 KS)</a> will conduct a big block deal of 10.927 million shares. Doosan Fuel Cell currently has 55.493 million shares so the block deal would represent <a href="https://finance.naver.com/news/news_read.nhn?article_id=0004426670&amp;office_id=015&amp;mode=LSS2D&amp;type=0&amp;section_id=101&amp;section_id2=258&amp;section_id3=&amp;date=20201005&amp;page=1" target="_blank" rel="noopener">19.7%</a> of total shares outstanding. About 10 major shareholders (including Doosan Corp, Doosan Group Chairman Park Jung-Won, and Doosan Heavy Industries Chairman Park Ji-Won) are selling part of their shares in this block deal. <div class="content-highlight">
We would take this block deal due to the following three main reasons:
1) Big discount&amp; reduced valuations
2) A leading, profitable player in the fuel cell industry in Korea
3) Inclusion in BBIG and Korean New Deal Funds
</div>

It was announced after the market close today that Doosan Fuel Cell Co Ltd (336260 KS) will conduct a big block deal of 10.927 million shares. Doosan Fuel Cell currently has 55.493 million shares so the block deal would represent 19.7% of total shares outstanding. About 10 major shareholders (including Doosan Corp, Doosan Group Chairman Park Jung-Won, and Doosan Heavy Industries Chairman Park Ji-Won) are selling part of their shares in this block deal. 
We would take this block deal due to the following three main reasons:
1) Big discount&amp; reduced valuations
2) A leading, profitable player in the fuel cell industry in Korea
3) Inclusion in BBIG and Korean New Deal Funds


Doosan Fuel Cell Big Block Deal Placement

Cross Asset Strategy

<h2>Review of Top 10 Issues Related to Korean Stock Market, Economy, &amp; Politics in September 2020</h2><ul>
<li><div class="content-highlight">Value &amp; GARP outperforming Growth</div></li>
<li>Big Hit Entertainment IPO </li>
<li>Kakao Games IPO </li>
<li>IPOs of Kakao Pay, Kakao Bank, &amp; Kakao Page in 2021 </li>
<li>A merger of the three Celltrion companies </li>
<li>LG Chem's carve-out of its rechargeable battery business </li>
<li>Big rights offerings by Doosan Heavy Industries &amp; Doosan Fuel Cell </li>
<li>HDC Hyundai Development gives up on Asiana Airlines </li>
<li>Nikola's founder resigns - Impact on Hanwha Solutions</li>
<li>Samsung Electronics (Dividends) </li>
</ul>

Review of Top 10 Issues Related to Korean Stock Market, Economy, &amp; Politics in September 2020
Value &amp; GARP outperforming Growth
Big Hit Entertainment IPO 
Kakao Games IPO 
IPOs of Kakao Pay, Kakao Bank, &amp; Kakao Page in 2021 
A merger of the three Celltrion companies 
LG Chem's carve-out of its rechargeable battery business 
Big rights offerings by Doosan Heavy Industries &amp; Doosan Fuel Cell 
HDC Hyundai Development gives up on Asiana Airlines 
Nikola's founder resigns - Impact on Hanwha Solutions
Samsung Electronics (Dividends) 


Korea Stock Market Monthly Recap #52 (September 2020)

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Vedanta, Cardinal Res., Japan Retail Fund, HSBC, Opticomm, Tiffany/LVMH

<div class="content-highlight">It has been reported in the past few days that <a href="http://www.koreaninvestors.com/?p=12175" target="_blank" rel="noopener">NPS</a> is likely to put a greater emphasis on ESG (environmental, social, &amp; governance) based investing for Korean stocks and bonds starting 2021. NPS has currently given a mandate to a company to help NPS to apply ESG based investment system. The ESG evaluations are expected to aid NPS to actively exercise shareholder rights and also to carry out negative screening of stocks.</div><h3>Implications of NPS Incorporating More ESG Criteria on Domestic Investments (Bonds &amp; Stocks)</h3><ul>
<li>Negative Impact on VICE industries </li>
<li>Positive Impact on Renewable Energy Industries</li>
<li>Negative Impact on Coal &amp; Oil Industries</li>
<li>Greater Representation of Women in Senior Management Team/BOD</li>
</ul>

It has been reported in the past few days that NPS is likely to put a greater emphasis on ESG (environmental, social, &amp; governance) based investing for Korean stocks and bonds starting 2021. NPS has currently given a mandate to a company to help NPS to apply ESG based investment system. The ESG evaluations are expected to aid NPS to actively exercise shareholder rights and also to carry out negative screening of stocks.Implications of NPS Incorporating More ESG Criteria on Domestic Investments (Bonds &amp; Stocks)
Negative Impact on VICE industries 
Positive Impact on Renewable Energy Industries
Negative Impact on Coal &amp; Oil Industries
Greater Representation of Women in Senior Management Team/BOD


NPS - Greater Emphasis of ESG Based Investing for Korean Stocks & Bonds Starting 2021

South Korea

Doosan Enerbility Co., Ltd. manufactures and distributes construction machines. The Company produces gas turbines, engines, turbine generators, boilers, power plant equipment, and other related products. Doosan Enerbility also offers energy solutions for thermal power, nuclear power, and renewable energy.

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Doosan Enerbility (034020 KS)

Doosan Fuelcell: Block Deals Outcome on Rights Offer

???

Sanghyun Park

Doosan Fuel Cell Big Block Deal Placement

It was announced after the market close today that Doosan Fuel Cell Co Ltd (336260 KS) will conduct a big block deal of 10.927 million shares....

Douglas Kim

Korea Stock Market Monthly Recap #52 (September 2020)

Review of Top 10 Issues Related to Korean Stock Market, Economy, Politics in September 2020

Douglas Kim

Last Week in Event SPACE: Vedanta, Cardinal Res., Japan Retail Fund, HSBC, Opticomm, Tiffany/LVMH

Last Week in Event SPACE ... Plus, other events, CCASS movements and Mood Spins. (This insight covers specific insights & comments...

David Blennerhassett

NPS - Greater Emphasis of ESG Based Investing for Korean Stocks & Bonds Starting 2021

It has been reported in the past few days that NPS is likely to put a greater emphasis on ESG (environmental, social, & governance) based...

Douglas Kim

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