Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>After the market close today, Ecopro BM announced a rights offering worth 500 billion won as well as a bonus issue of three new shares for one existing share.</li>
<li>The tentative rights offering price is 310,300 won, which is 27% lower than current price of 423,800 won.</li>
<li>Ecopro BM's valuations remain stretched with its shares trading at high multiples and we believe there could be some further weakness in its share price in the coming weeks. </li>
</ul>


After the market close today, Ecopro BM announced a rights offering worth 500 billion won as well as a bonus issue of three new shares for one existing share.
The tentative rights offering price is 310,300 won, which is 27% lower than current price of 423,800 won.
Ecopro BM's valuations remain stretched with its shares trading at high multiples and we believe there could be some further weakness in its share price in the coming weeks. 


Ecopro BM Rights Offering Worth 500 Billion Won

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>
<strong>The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly.</strong> Also, the rebalancing trading takes place for three trading days instead of one trading day.</li>
<li>
<strong>This passive impact will be different from the previous rebalancing.</strong> LG Energy and SK Innovation will likely experience a significant passive outflow. Then, most small-cap constituents will receive an inflow. </li>
<li>
<strong>Among the top weighting stocks, Samsung SDI and SKIET deserve attention</strong>. Sangsin Energy, E&amp;D, and TSI will face exclusion, while C&amp;I, Sang-A Frontec, and Enchem will likely join the ETF.</li>
</ul>



The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. Also, the rebalancing trading takes place for three trading days instead of one trading day.

This passive impact will be different from the previous rebalancing. LG Energy and SK Innovation will likely experience a significant passive outflow. Then, most small-cap constituents will receive an inflow. 

Among the top weighting stocks, Samsung SDI and SKIET deserve attention. Sangsin Energy, E&amp;D, and TSI will face exclusion, while C&amp;I, Sang-A Frontec, and Enchem will likely join the ETF.


KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing

<h2>Pro-ration results</h2>
<p>As suggested in the previous insight <a href="https://www.smartkarma.com/insights/ecopro-tender-event-pro-ration-risk-analysis-arb-spread-widening-possibilities" target="_blank" data-smartkarma-citation="insights:59265" rel="noopener">Ecopro Tender Event: Pro-Ration Risk Analysis &amp; Arb Spread Widening Possibilities</a>, Ecopro's final subscription rate fell short of hitting the target. The final rate was 74.41%, issuing only 5.27M new Ecopro shares. The forfeited shares are 1.81M, and these will not be issued.</p>
<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/239/790/original/Screen+Shot+2021-11-02+at+10.31.05+PM.png?1636073811" class="editor-image img-responsive" data-smartkarma-image-id="239790"></figure>
</section>
<div class="content-caption">(<a href="https://engkind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptNo=20211102000129&amp;docno=&amp;formProcsCd=070&amp;language=english" target="_blank" rel="noopener">Source: KRX KIND</a>)</div>
<p>As a result, Ecopro's number of issued shares will increase by 5.27M from <span data-sheets-value='{"1":3,"3":18701387}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"#,##0","3":1},"9":2,"10":1,"12":0,"14":{"1":2,"2":0},"15":"Courier New","16":9}' data-sheets-formula='=googlefinance(R[-1]C[0], "shares")'>18.7M to 24.0M, representing a capital increase rate of 28.2% at a shareholding dilution of 22.0% </span></p>
<table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr>
<td colspan="2" data-sheets-value='{"1":2,"2":"Swap results"}'>Swap results</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Type"}'>Type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Exchange offer"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Exchange offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target"}'>Target</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7087918}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>7,087,918</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":": Capital increase rate"}'>: Capital increase rate</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.37900493690655135}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-2]C[1], "shares")'>37.90%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":": Dilution"}'>: Dilution</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.27483943440895364}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]/(R[-2]C[0]+R[-2]C[1])">27.48%</td>
</tr>
<tr>
<td colspan="2"></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Actual tendered"}'><strong>Actual tendered</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5274285}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>5,274,285</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":": Capital increase rate"}'><strong>: Capital increase rate</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.282026407987814}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-4]C[1]"><strong>28.20%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":": Dilution"}'><strong>: Dilution</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.21998486632616596}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]/(R[-2]C[0]+R[-5]C[1])"><strong>22.00%</strong></td>
</tr>
<tr>
<td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td>
</tr>
</tbody>
</table>
<p>Since October 8, when the swap price ratio was finally confirmed, the swap arb spread has risen to a little above 3%. During the 20-day arb trading period, the spread had fluctuated pretty much at a 2-3% range. During this period, the relatively tight arb spread appears to be due to active arb trading, believing that pro-ration risk shouldn't be high.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/239/791/original/image_84768239521636074386606.png?1636074388" class="editor-image img-responsive" data-smartkarma-image-id="239791"></figure>

Pro-ration results
As suggested in the previous insight Ecopro Tender Event: Pro-Ration Risk Analysis &amp; Arb Spread Widening Possibilities, Ecopro's final subscription rate fell short of hitting the target. The final rate was 74.41%, issuing only 5.27M new Ecopro shares. The forfeited shares are 1.81M, and these will not be issued.



(Source: KRX KIND)
As a result, Ecopro's number of issued shares will increase by 5.27M from 18.7M to 24.0M, representing a capital increase rate of 28.2% at a shareholding dilution of 22.0% 







Swap results


Type
Exchange offer


Target
7,087,918


: Capital increase rate
37.90%


: Dilution
27.48%





Actual tendered
5,274,285


: Capital increase rate
28.20%


: Dilution
22.00%


Source: DART



Since October 8, when the swap price ratio was finally confirmed, the swap arb spread has risen to a little above 3%. During the 20-day arb trading period, the spread had fluctuated pretty much at a 2-3% range. During this period, the relatively tight arb spread appears to be due to active arb trading, believing that pro-ration risk shouldn't be high.


Ecopro Tender: Pro-Ration Results, KOSDAQ 150 Corporate Action & Est. Passive Impact

<p>The Ecopro tender spread is still compressed at the 2% level. The current arb yield stands at 2.54% at the last close. </p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap gain"}'>Swap gain</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"Ecopro Co., Ltd."}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=Terms!R[-10]C[0]">Ecopro Co., Ltd.</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"Ecopro HN Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=Terms!R[-6]C[-1]">Ecopro HN Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"086520"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=Terms!R[-10]C[0]">086520</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"383310"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=Terms!R[-6]C[-1]">383310</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current price"}'>Current price</td>
<td style="text-align: center;" data-sheets-value='{"1":3,"3":98400}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula='=googlefinance(Terms!R[-11]C[0], "price")'>₩98,400</td>
<td style="text-align: center;" data-sheets-value='{"1":3,"3":111100}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula='=googlefinance(Terms!R[-7]C[-1], "price")'>₩111,100</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap price"}'>Swap price</td>
<td style="text-align: center;" data-sheets-value='{"1":3,"3":95441}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=Terms!R[-10]C[0]">₩95,441</td>
<td style="text-align: center;" data-sheets-value='{"1":3,"3":110500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=Terms!R[-6]C[-1]">₩110,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap ratio"}'>Swap ratio</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":1.157783342588615}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula="=R[-1]C[1]/R[-1]C[0]">1.1577833</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Price for 100 shares of the target company"}'>Price for 100 shares of the target company</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":11110000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-3]C[1]*100">₩11,110,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Number of new shares of the acquiring company"}'>Number of new shares of the acquiring company</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":115.7783342588615}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula="=100*R[-2]C[0]">115.7783343</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of the new shares at the current price"}'>Value of the new shares at the current price</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":11392588.091071973}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-1]C[0]*R[-5]C[0]">₩11,392,588</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap gain"}'>Swap gain</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":0.0254354717436519}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-1]C[0]-R[-3]C[0])/R[-3]C[0]">2.54%</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART &amp; KRX"}'>Source: DART &amp; KRX</td></tr>
</tbody>
</table><p>The spread has not exceeded 3% since October 8, when short-selling restrictions were lifted and arb trading became possible.</p><div class="content-highlight"><p><strong>The main reason the spread is not widening is that the share price of Ecopro HN has risen, which paradoxically shows that short-term purchases for arb trading are influencing it strongly.</strong></p></div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/236/519/original/image_27181164221634749642433.png?1634749643" class="editor-image img-responsive" data-smartkarma-image-id="236519"></figure><hr><p><strong>This tender event is briefly summarized as follows:</strong></p><ul>
<li>Acquirer: Ecopro Co., Ltd.</li>
<li>Stocks subject to purchase: Ecopro HN registered common stock (6,121,973 shares)</li>
<li>Payment method: Grant of new common stock of Ecopro Co., Ltd. (cash payment for fraction stocks)</li>
<li>Tendering period: October 13 ~ November 1, 2021</li>
<li>Tendering price: ₩110,500 per share</li>
<li>Ecopro Co., Ltd. issuance price of new shares: ₩95,441 per share</li>
<li>Stock exchange ratio: 1.1577833 (Ecopro 1.1577833 shares exchanged per 1 Ecopro HN share)</li>
<li>Stock settlement date and cash payment date (for fractional shares): November 4, 2021</li>
<li>Listing date: November 19, 2021</li>
<li>Subscription channel: must physically visit a Daishin Securities branch (+82 1588-4488)</li>
</ul><hr><p>The most active arb-trading institutional investors in stock swap events in the Korean local market are local brokerages/investment advisories. Since October 8, they have significantly increased their stock purchases of Ecopro HN. In other words, this proves that a significant level of arb trading is taking place in this event.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/236/527/original/Screen+Shot+2021-10-20+at+4.30.59+PM.png?1634761895" class="editor-image img-responsive" data-smartkarma-image-id="236527"></figure><p>Short-selling on Ecopro Co., Ltd. also increased significantly from October 8. For reference, October 12 was the day when Ecopro Co was shorting-restricted. By the way, we see a significant discrepancy on October 8 between local brokerages/investment advisories' net buying of Ecopro HN and the short-selling on Ecopro Co. It seems to be because those investors had bought Ecopro HN during the short-selling ban period short-sold Ecopro Co., Ltd on this day.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/236/535/original/Screen+Shot+2021-10-20+at+4.31.17+PM.png?1634765907" class="editor-image img-responsive" data-smartkarma-image-id="236535"></figure></section>

The Ecopro tender spread is still compressed at the 2% level. The current arb yield stands at 2.54% at the last close. 







Swap gain
Ecopro Co., Ltd.
Ecopro HN Co Ltd


Ticker
086520
383310


Current price
₩98,400
₩111,100


Swap price
₩95,441
₩110,500


Swap ratio
1.1577833


Price for 100 shares of the target company
₩11,110,000


Number of new shares of the acquiring company
115.7783343


Value of the new shares at the current price
₩11,392,588


Swap gain
2.54%

Source: DART &amp; KRX

The spread has not exceeded 3% since October 8, when short-selling restrictions were lifted and arb trading became possible.The main reason the spread is not widening is that the share price of Ecopro HN has risen, which paradoxically shows that short-term purchases for arb trading are influencing it strongly.This tender event is briefly summarized as follows:
Acquirer: Ecopro Co., Ltd.
Stocks subject to purchase: Ecopro HN registered common stock (6,121,973 shares)
Payment method: Grant of new common stock of Ecopro Co., Ltd. (cash payment for fraction stocks)
Tendering period: October 13 ~ November 1, 2021
Tendering price: ₩110,500 per share
Ecopro Co., Ltd. issuance price of new shares: ₩95,441 per share
Stock exchange ratio: 1.1577833 (Ecopro 1.1577833 shares exchanged per 1 Ecopro HN share)
Stock settlement date and cash payment date (for fractional shares): November 4, 2021
Listing date: November 19, 2021
Subscription channel: must physically visit a Daishin Securities branch (+82 1588-4488)
The most active arb-trading institutional investors in stock swap events in the Korean local market are local brokerages/investment advisories. Since October 8, they have significantly increased their stock purchases of Ecopro HN. In other words, this proves that a significant level of arb trading is taking place in this event.Short-selling on Ecopro Co., Ltd. also increased significantly from October 8. For reference, October 12 was the day when Ecopro Co was shorting-restricted. By the way, we see a significant discrepancy on October 8 between local brokerages/investment advisories' net buying of Ecopro HN and the short-selling on Ecopro Co. It seems to be because those investors had bought Ecopro HN during the short-selling ban period short-sold Ecopro Co., Ltd on this day.

Ecopro Tender Event: Pro-Ration Risk Analysis & Arb Spread Widening Possibilities

<h2>Swap ratio finalized</h2><p>Ecopro (acquirer) finalized the swap price at ₩95,441 on October 7. It was based on the VWAP for the three trading days from October 5 to 7. The discount rate applied in this case was 0%.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/192/original/1.png?1633700911" class="editor-image img-responsive" data-smartkarma-image-id="234192"></figure><p></p></section><div>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/196/original/4.png?1633703258" class="editor-image img-responsive" data-smartkarma-image-id="234196"></figure><p>FYI, Ecopro HN (the target company)'s swap price was finalized at ₩110,500 based on the formula below.</p>
</div><div><ul style="list-style-type: disc;">
<li>September 3 is the reference date.</li>
<li>It was calculated through Min [Close on September 3, Average(Close on September 3, 1W VWAP, 1M VWAP)].</li>
<li>It is in accordance with the regulations of KRX.</li>
</ul></div><section><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/193/original/image?1633701146" class="editor-image img-responsive" data-smartkarma-image-id="234193"></figure></section><div>
<div class="content-highlight"><p><strong>So, the swap ratio got finalized at 1.1577833, meaning that you will swap your one share of Ecopro HN with 1.1577833 shares of Ecopro. The target number of shares remains the same at 6,121,973 shares, worth ₩676.5B.</strong></p></div>
<table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Acquirer"}'>Acquirer</td>
<td data-sheets-value='{"1":2,"2":"Ecopro Co., Ltd."}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Ecopro Co., Ltd. (086520)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Qty."}'>- Qty.</td>
<td data-sheets-value='{"1":3,"3":7087918}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>7,087,918</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Swap price"}'><strong>- Swap price</strong></td>
<td data-sheets-value='{"1":3,"3":95441}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩95,441</strong></td>
</tr>
<tr><td colspan="2"><strong> </strong></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target company"}'>Target company</td>
<td data-sheets-value='{"1":2,"2":"Ecopro HN Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Ecopro HN Co Ltd (383310)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Qty."}'><strong>- Qty.</strong></td>
<td data-sheets-value='{"1":3,"3":6121973}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>6,121,973</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Swap price"}'><strong>- Swap price</strong></td>
<td data-sheets-value='{"1":3,"3":110500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩110,500</strong></td>
</tr>
<tr><td colspan="2"></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap ratio"}'><strong>Swap ratio</strong></td>
<td data-sheets-value='{"1":3,"3":1.1577833}'><strong>1.1577833</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target volume as % of SO"}'>Target volume as % of SO</td>
<td data-sheets-value='{"1":3,"3":0.400000013067683}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-3]C[0]/googlefinance(R[-4]C[0], "shares")'>40.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target value"}'><strong>Target value</strong></td>
<td data-sheets-value='{"1":3,"3":676477981838}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-8]C[0]*R[-7]C[0]"><strong>₩676,477,981,838</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Banker"}'>Banker</td>
<td data-sheets-value='{"1":2,"2":"Daishin"}'>Daishin</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
</div>

Swap ratio finalizedEcopro (acquirer) finalized the swap price at ₩95,441 on October 7. It was based on the VWAP for the three trading days from October 5 to 7. The discount rate applied in this case was 0%.
FYI, Ecopro HN (the target company)'s swap price was finalized at ₩110,500 based on the formula below.

September 3 is the reference date.
It was calculated through Min [Close on September 3, Average(Close on September 3, 1W VWAP, 1M VWAP)].
It is in accordance with the regulations of KRX.

So, the swap ratio got finalized at 1.1577833, meaning that you will swap your one share of Ecopro HN with 1.1577833 shares of Ecopro. The target number of shares remains the same at 6,121,973 shares, worth ₩676.5B.






Overview

Acquirer
Ecopro Co., Ltd. (086520)


- Qty.
7,087,918


- Swap price
₩95,441

 

Target company
Ecopro HN Co Ltd (383310)


- Qty.
6,121,973


- Swap price
₩110,500



Swap ratio
1.1577833


Target volume as % of SO
40.00%


Target value
₩676,477,981,838


Banker
Daishin

Source: DART




Ecopro Tender: Swap Ratio Finalized, Still Juicy Spread, & We Can Buy/Tender Now

South Korea

Ecopro Co., Ltd. specializes in developing chemical absorbent and NDC (Nano Carbon Ball) in the field of environmental materials for the prevention of air pollution.  The Company's products include environment-related chemical filters, second battery materials, and CO catalyst.

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Ecopro Co Ltd (086520 KS)

Ecopro BM Rights Offering Worth 500 Billion Won

After the market close today, Ecopro BM announced a rights offering worth 500 billion won as well as a bonus issue of three new shares for one...

Douglas Kim

KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing

The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. This post previews the upcoming rebalancing...

Sanghyun Park

Ecopro Tender: Pro-Ration Results, KOSDAQ 150 Corporate Action & Est. Passive Impact

This post details the pro-ration results of the Ecopro tender event. In addition, it explains the corporate actions of KOSDAQ 150 and estimates the...

Sanghyun Park

Ecopro Tender Event: Pro-Ration Risk Analysis & Arb Spread Widening Possibilities

This post analyzes the pro-ration risk and examines the arb spread widening possibilities in the Ecopro tender offer event.

Sanghyun Park

Ecopro Tender: Swap Ratio Finalized, Still Juicy Spread, & We Can Buy/Tender Now

This post is a follow-up on the Ecopro stock swap event, whose swap ratio got finalized yesterday. We are currently seeing a heavy arb trading at a...

Sanghyun Park

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