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

Below is the list of the lock-up expirations on KOSPI from April to September.











Name
Ticker
Type
Expiry date
Qty.
% of SO
MC (₩B)


Ottogi Corp
007310
Ord
2021-09-25
66,744
1.82%
2,096.7


Yuyang D&amp;U Co Ltd
011690
Ord
2021-09-19
59,000,000
40.07%
359.3


Orient Bio Inc
002630
Ord
2021-09-04
16,770,970
14.14%
182.6


CItech Co Ltd
004920
Ord
2021-08-14
1,000,000
3.99%
25.4


Hanil Cement Co Ltd
300720
Ord
2021-08-14
2,781,184
40.15%
1,104.7


Industrial Bank of Korea
024110
Ord
2021-08-13
62,192,786
8.42%
6,677.5


CJ CGV Co Ltd
079160
Ord
2021-08-08
2,054,510
5.85%
956.5


Prestige Biopharma Ltd
950210
Ord
2021-08-05
13,446,250
22.37%
1,697.7


SoluM Co Ltd
248070
Ord
2021-08-02
3,037,304
6.19%
1,244.5


Thelma Therapeutics Co Ltd
015540
Ord
2021-07-30
1,100,528
8.18%
86.2


Kiwi Media Group Co Ltd
012170
Ord
2021-07-15
378,036
0.61%
#N/A


Industrial Bank of Korea
024110
Ord
2021-07-10
12,412,204
1.68%
6,677.5


Kyobo Securities Co., Ltd.
030610
Ord
2021-07-09
28,653,296
44.32%
508.8


Kukbo Co Ltd
001140
Ord
2021-07-09
7,299,270
14.36%
112.3


Metalabs Co Ltd
090370
Ord
2021-06-18
286,902
0.45%
75.5


MERITZ SECURITIES CO LTD
008560
Ord
2021-06-17
58,651,026
8.68%
3,048.6


JR Global REIT
348950
Ord
2021-06-16
68,600,000
41.43%
862.8


Metalabs Co Ltd
090370
Ord
2021-06-11
234,208
0.37%
75.5


Myoung Shin Industrial Co Ltd
009900
Ord
2021-06-08
23,844,210
58.47%
1,068.4


IGIS Residence REIT Co Ltd
350520
Ord
2021-06-03
2,640,000
12.82%
101.1


Boryung Pharmaceutical Co., Ltd
003850
Ord
2021-06-01
3,420,000
6.56%
1,099.7


Koramco Energy Plus REIT Co Ltd
357120
Ord
2021-05-30
42,300,000
60.76%
364.1


Jooyon Tech Co Ltd
044380
Ord
2021-05-21
865,565
1.58%
60.6


Feelux Co Ltd
033180
Ord
2021-05-21
3,383,459
2.61%
438.5


A Plus Asset Advisor Co Ltd
244920
Ord
2021-05-20
6,170,440
27.29%
188.3


Industrial Bank of Korea
024110
Ord
2021-05-18
57,523,357
7.79%
6,677.5


BK Tops Co Ltd
030790
Ord
2021-05-15
4,671,077
35.58%
161.5


Kyochon F&amp;B Co Ltd
339770
Ord
2021-05-12
18,519,961
74.13%
448.4


Daiyang Metal Co Ltd
009190
Ord
2021-05-12
7,326,007
24.78%
117.4


Industrial Bank of Korea
024110
Ord
2021-05-11
29,379,034
3.98%
6,677.5


Metalabs Co Ltd
090370
Ord
2021-05-10
112,655
0.18%
75.5


CItech Co Ltd
004920
Ord
2021-04-23
6,000,000
23.93%
25.4


Big Hit Entertainment Co Ltd
352820
Ord
2021-04-15
13,744,816
38.58%
8,656.6


Samyang Corp
145990
Ord
2021-04-14
23,646
0.23%
610.6

Source: KRX KIND

Following are MC&gt;₩1T with a +20% of SO lock-up expiry. The earliest one is Big Hit Ent. (now HYBE) as 38.58% of the SO will newly hit the market on April 15. That is ₩3.34T worth of shares.











Name
Ticker
Type
Expiry date
Qty.
% of SO
MC (₩B)


Hanil Cement Co Ltd
300720
Ord
2021-08-14
2,781,184
40.15%
1,104.7


Prestige Biopharma Ltd
950210
Ord
2021-08-05
13,446,250
22.37%
1,697.7


Myoung Shin Industrial Co Ltd
009900
Ord
2021-06-08
23,844,210
58.47%
1,068.4


Big Hit Entertainment Co Ltd
352820
Ord
2021-04-15
13,744,816
38.58%
8,656.6

Source: KRX KIND

The founder Bang Si-hyuk's 34.74% will end the lock-up, as well as the Well Blink (one of the early investors)'s 2.49%, converted from the RCPS.









Big Hit Ent.
Start
End
Qty.
% of SO


Bang Si-hyuk
2020-10-15
2021-04-14
12,377,337
34.74%


WELL BLINK LIMITED
2020-10-15
2021-04-14
888,784
2.49%


Kim Nam-joon
2020-10-15
2021-04-14
68,385
0.19%


Kim Seok-jin
2020-10-15
2021-04-14
68,385
0.19%


Kim Tae-hyeong
2020-10-15
2021-04-14
68,385
0.19%


Min Yun-ki
2020-10-15
2021-04-14
68,385
0.19%


Park Ji-min
2020-10-15
2021-04-14
68,385
0.19%


Jeon Jeong-kook
2020-10-15
2021-04-14
68,385
0.19%


Jeong Ho-seok
2020-10-15
2021-04-14
68,385
0.19%

Source: KRX KIND



KOSPI Lock-Up Expirations for Apr-Sep, Feat. Big Hit Ent, Now HYBE

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

On 2 April, HYBE (formerly called Big Hit Entertainment) announced that it will merge with Ithaca Holdings, which is a leading US based media company that provides music-related management, record label, publishing, film, and TV shows. Major artists of Ithaca Holdings include Justin Bieber and Ariana Grande. In this deal, HYBE (through its subsidiary Big Hit America) will acquire a 100% stake of Ithaca Holdings for 1.186 trillion won ($1.05 billion).With the merger between HYBE and Ithaca Holdings, the former has tried to catch two birds with one stone in terms of revenue and geographical diversification. It will also try to improve the company's know-how of distribution capabilities in the US music and media markets. In terms of valuation for Ithaca Holdings, although the M&amp;A valuation multiples (in terms of P/S and P/B) are lower than HYBE's current valuations, we do not have enough information about Ithaca's historical financials so we do not know exactly what their growth rates are so there remains some concerns of over payment. Ithaca Holdings had about 20% of HYBE's revenue in 2020. As part of this deal, there will be two rights offering. The first rights offering is worth 440 billion won to the existing shareholders. The second rights offering is worth 182 billion won to the third parties (including Scooter Braun and major artists at Ithaca Holdings). Total share dilution from these two rights offering is 8.7% of total shares outstanding. End of lock-up period for 36% of HYBE's shares in April - In the midst of all this deal making for HYBE and Ithaca Holdings, there is a crucial factor to consider which is that the <a href="https://m.stock.naver.com/index.html#/news/flashnews/view/015/0004522608" target="_blank" rel="noopener">lock-up periods</a> for nearly 36% of HYBE's shares end in 15 April 2021 (6 months after IPO), including 34.7% owned by the largest shareholder Bang Si-Hyuk.<div class="content-highlight">Overall, we have some mixed views about this big deal between HYBE and Ithaca Holdings. While there are some positives about revenues and geographical diversification, there are some concerns about over payment plus there are continued concerns about whether Ithaca Holdings will be able to produce some top music talents as it has been able to do so in the past decade. In addition, the big shares that could be sold starting this month (end of lock-up period) also raises concerns about more shares being potentially sold by HYBE's insiders. Overall, we remain Negative on HYBE (Big Hit Entertainment). </div>

On 2 April, HYBE (formerly called Big Hit Entertainment) announced that it will merge with Ithaca Holdings, which is a leading US based media company that provides music-related management, record label, publishing, film, and TV shows. Major artists of Ithaca Holdings include Justin Bieber and Ariana Grande. In this deal, HYBE (through its subsidiary Big Hit America) will acquire a 100% stake of Ithaca Holdings for 1.186 trillion won ($1.05 billion).With the merger between HYBE and Ithaca Holdings, the former has tried to catch two birds with one stone in terms of revenue and geographical diversification. It will also try to improve the company's know-how of distribution capabilities in the US music and media markets. In terms of valuation for Ithaca Holdings, although the M&amp;A valuation multiples (in terms of P/S and P/B) are lower than HYBE's current valuations, we do not have enough information about Ithaca's historical financials so we do not know exactly what their growth rates are so there remains some concerns of over payment. Ithaca Holdings had about 20% of HYBE's revenue in 2020. As part of this deal, there will be two rights offering. The first rights offering is worth 440 billion won to the existing shareholders. The second rights offering is worth 182 billion won to the third parties (including Scooter Braun and major artists at Ithaca Holdings). Total share dilution from these two rights offering is 8.7% of total shares outstanding. End of lock-up period for 36% of HYBE's shares in April - In the midst of all this deal making for HYBE and Ithaca Holdings, there is a crucial factor to consider which is that the lock-up periods for nearly 36% of HYBE's shares end in 15 April 2021 (6 months after IPO), including 34.7% owned by the largest shareholder Bang Si-Hyuk.Overall, we have some mixed views about this big deal between HYBE and Ithaca Holdings. While there are some positives about revenues and geographical diversification, there are some concerns about over payment plus there are continued concerns about whether Ithaca Holdings will be able to produce some top music talents as it has been able to do so in the past decade. In addition, the big shares that could be sold starting this month (end of lock-up period) also raises concerns about more shares being potentially sold by HYBE's insiders. Overall, we remain Negative on HYBE (Big Hit Entertainment). 

HYBE (Big Hit Entertainment) Merges with Ithaca Holdings - "Stuck With U"

Cross Asset Strategy

<div class="content-highlight">In this insight, we discuss about the winners and losers among the top 100 stocks in KOSPI, especially in the most recent "KOSPI Box trading range" lasting from 8 January to 10 February 2021 (see chart below). Sometimes, finding out what stocks and sectors outperform in a box trading range could lead to some clues in helping to understand what stocks and sectors could outperform in the coming weeks. From 8 January to 10 February, KOSPI has been trading in a box range and its is down slightly (1.6%) in this period. </div>

In this insight, we discuss about the winners and losers among the top 100 stocks in KOSPI, especially in the most recent "KOSPI Box trading range" lasting from 8 January to 10 February 2021 (see chart below). Sometimes, finding out what stocks and sectors outperform in a box trading range could lead to some clues in helping to understand what stocks and sectors could outperform in the coming weeks. From 8 January to 10 February, KOSPI has been trading in a box range and its is down slightly (1.6%) in this period. 

Winners & Losers in the KOSPI Box Trading Range & Return of Money Velocity Post End of Lock Down?

<div class="content-highlight">It was announced on 25 January that Kakao Page and Kakao M held a board meeting to decide on a merger and launch a newco called Kakao Entertainment. The two companies plan to complete the merger on 1 March after the final approval at the shareholders' meeting on 26 January. The merger ratio is calculated as 1 (Kakao Page) to 1.31 (Kakao M).</div>

It was announced on 25 January that Kakao Page and Kakao M held a board meeting to decide on a merger and launch a newco called Kakao Entertainment. The two companies plan to complete the merger on 1 March after the final approval at the shareholders' meeting on 26 January. The merger ratio is calculated as 1 (Kakao Page) to 1.31 (Kakao M).

The Merger of Kakao Page & Kakao M to Create Kakao Entertainment

The KRX announced the KOSPI 200 rebalancing results (biannually).The effective date is December 12, Friday.I put the full list of additions and deletions with volatility, price upside, and liquidity for each stock in the DETAIL section.

The KRX announced the KOSPI 200 rebalancing results (biannually).The effective date is December 12, Friday.I put the full list of additions and deletions with volatility, price upside, and liquidity for each stock in the DETAIL section.

KOSPI 200 Rebalancing Results: List, Volatility, Upside, & Liquidity

South Korea

HYBE Co., Ltd. operates as an entertainment company. The Company provides music production, album distribution, entertainers management, publicity, planning, training, and other services. HYBE also makes television shows.

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

HYBE (352820 KS)

KOSPI Lock-Up Expirations for Apr-Sep, Feat. Big Hit Ent, Now HYBE

This post has the lock-up expirations on KOSPI from April to September and examines how Big Hit major shareholder's lock-up expiration relates to...

Sanghyun Park

HYBE (Big Hit Entertainment) Merges with Ithaca Holdings - "Stuck With U"

On 2 April, HYBE (formerly called Big Hit Entertainment) announced that it will merge with Ithaca Holdings. This marks one of the largest ever...

Douglas Kim

Winners & Losers in the KOSPI Box Trading Range & Return of Money Velocity Post End of Lock Down?

In this insight, we discuss about the winners and losers among the top 100 stocks in KOSPI, especially in the most recent "KOSPI Box trading range"...

Douglas Kim

The Merger of Kakao Page & Kakao M to Create Kakao Entertainment

On 25 January, Kakao Page and Kakao M announced that they held a board meeting to decide on a merger and launch Kakao Entertainment, which would be...

Douglas Kim

KOSPI 200 Rebalancing Results: List, Volatility, Upside, & Liquidity

The KRX announced the KOSPI 200 rebalancing results. This post has the full list of additions and deletions with volatility, price upside, and...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)