Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>After the market close on 28 May, it was announced that Stonebridge Capital plans to conduct a block deal sale of a portion of its stake in DS Dansuk.</li>
<li>This deal involves 210,000 to 290,000 shares of DS Dansuk. The block deal price range is from 99,800 won to 101,400 won, which represents 7.06% to 8.52% discount.</li>
<li>After this second block deal, there will be further overhang concerns about additional sales of DS Dansuk by Stonebridge Capital in the coming months. </li>
</ul>


After the market close on 28 May, it was announced that Stonebridge Capital plans to conduct a block deal sale of a portion of its stake in DS Dansuk.
This deal involves 210,000 to 290,000 shares of DS Dansuk. The block deal price range is from 99,800 won to 101,400 won, which represents 7.06% to 8.52% discount.
After this second block deal, there will be further overhang concerns about additional sales of DS Dansuk by Stonebridge Capital in the coming months. 


DS Dansuk: Block Deal Sale by Stonebridge Capital

Equity Capital Markets

<ul>
<li>DS Dansuk reported solid bookbuilding results. DS Dansuk IPO price has been determined at 100,000 won per share, which is 12.4% higher than high end of the IPO price range.</li>
<li>A total of 1,843 institutional investors participated in this IPO book building. The demand ratio was 342 to 1. DS Dansuk IPO will start trading on 22 December.</li>
<li>Given the strong IPO bookbuilding results, we believe shares of DS Dansuk are likely to trade above the high end of the IPO sensitivity analysis (137,877 won). </li>
</ul>


DS Dansuk reported solid bookbuilding results. DS Dansuk IPO price has been determined at 100,000 won per share, which is 12.4% higher than high end of the IPO price range.
A total of 1,843 institutional investors participated in this IPO book building. The demand ratio was 342 to 1. DS Dansuk IPO will start trading on 22 December.
Given the strong IPO bookbuilding results, we believe shares of DS Dansuk are likely to trade above the high end of the IPO sensitivity analysis (137,877 won). 


DS Dansuk IPO Bookbuilding Results Analysis

<ul>
<li>Our base case valuation of DS Dansuk is 113,948 won per share which is 28% higher than the high end of the IPO price range (89,000 won). </li>
<li>We estimate bio energy to account for 64.7% of total sales, followed by battery recycle (21.5%), plastic recycle (6.7%), and others (7.1%) in 2023. </li>
<li>DS Dansuk is an eco-friendly company with three core businesses including bio energy, battery recycling, and plastic recycling.</li>
</ul>


Our base case valuation of DS Dansuk is 113,948 won per share which is 28% higher than the high end of the IPO price range (89,000 won). 
We estimate bio energy to account for 64.7% of total sales, followed by battery recycle (21.5%), plastic recycle (6.7%), and others (7.1%) in 2023. 
DS Dansuk is an eco-friendly company with three core businesses including bio energy, battery recycling, and plastic recycling.


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August. Only 4 trading days to go.</li>
<li>We see 7 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 12 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.</li>
<li>The upward migrations have underperformed the downward migrations over the last month as a few stocks have sold off hard. Some despite being included in global indices.</li>
</ul>


The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August. Only 4 trading days to go.
We see 7 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 12 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
The upward migrations have underperformed the downward migrations over the last month as a few stocks have sold off hard. Some despite being included in global indices.


KOSPI Size Indices: Momentum Stalls; (Some) Upward Migrations Sell-Off

<ul>
<li>The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.</li>
<li>We see 8 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 11 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.</li>
<li>There are a few stocks that are expected to have passive flows from global and local index trackers over the next few months and that will add to the impact.</li>
</ul>


The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
We see 8 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 11 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
There are a few stocks that are expected to have passive flows from global and local index trackers over the next few months and that will add to the impact.


KOSPI Size Indices: Outperformance Slows on Momentum Stalls

South Korea

Operator of a resource recycling company intended to treat waste from industrial activities. The company specializes in resource circulation and engages in bioenergy, battery, and plastic recycling businesses as well as research and development center services, thereby reducing exhaust gas emissions such as fine dust, CO, and HC, which are carcinogens and have biodegradable features.

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DS Dansuk (017860 KS)

DS Dansuk: Block Deal Sale by Stonebridge Capital

After the market close on 28 May, it was announced that Stonebridge Capital plans to conduct a block deal sale of a portion of its stake in DS Dansuk.

Douglas Kim

DS Dansuk IPO Bookbuilding Results Analysis

DS Dansuk reported solid bookbuilding results. DS Dansuk IPO price has been determined at 100,000 won per share, which is 12.4% higher than high...

Douglas Kim

DS Dansuk IPO Valuation Analysis

Our base case valuation of DS Dansuk is 113,948 won per share which is 28% higher than the high end of the IPO price range (89,000 won).

Douglas Kim

KOSPI Size Indices: Momentum Stalls; (Some) Upward Migrations Sell-Off

There could be 41 changes to the KOSPI Size Indices in September. The upward migrations have underperformed the downward migrations over the last...

Brian Freitas

KOSPI Size Indices: Outperformance Slows on Momentum Stalls

There could be 41 stocks migrating between size segments in September. The upward migrations have outperformed the downward migrations but the...

Brian Freitas

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