Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>Hyundai Motors Securities announced a rights offering worth nearly 200 billion won involving a 49% shares dilution. </li>
<li><em><strong>The amount of shares dilution is excessive which is likely to result in a share price weakness in Hyundai Motor Securities in the coming weeks. </strong></em></li>
<li>The expected rights offering price for now is 6,640 won per share which is 24.5% discount to the closing price on 26 November.</li>
</ul>


Hyundai Motors Securities announced a rights offering worth nearly 200 billion won involving a 49% shares dilution. 
The amount of shares dilution is excessive which is likely to result in a share price weakness in Hyundai Motor Securities in the coming weeks. 
The expected rights offering price for now is 6,640 won per share which is 24.5% discount to the closing price on 26 November.


Hyundai Motor Securities Announces a Rights Offering Involving a 49% Shares Dilution

<ul>
<li>On 27 November, Hyundai Motor (005380 KS) announced that it plans to buy back 1 trillion won worth of its shares (700 billion won to be cancelled).</li>
<li>Trump's aggressive tariff policy has been one of the major factors negatively impacting Hyundai Motor's share price in the past several months. </li>
<li>Hyundai Motor's valuation has become more attractive.  There are also other investments such as its stakes in Boston Dynamics and Hyundai Motor India that could be valued higher. </li>
</ul>


On 27 November, Hyundai Motor (005380 KS) announced that it plans to buy back 1 trillion won worth of its shares (700 billion won to be cancelled).
Trump's aggressive tariff policy has been one of the major factors negatively impacting Hyundai Motor's share price in the past several months. 
Hyundai Motor's valuation has become more attractive.  There are also other investments such as its stakes in Boston Dynamics and Hyundai Motor India that could be valued higher. 


Hyundai Motor: Share Buyback of 1 Trillion Won and Trump's Tariffs

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Horizon Construction Development / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/horizon-construction-development" target="_blank" data-smartkarma-citation="entities:35117:1" rel="noopener">Horizon Construction Development (1887128D HK)</a> raised around US$210m in its Hong Kong IPO.</li>
<li>HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.</li>
<li>In this note, we will talk about the trading dynamics and valuation.</li>
</ul>



Horizon Construction Development (1887128D HK) raised around US$210m in its Hong Kong IPO.
HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.
In this note, we will talk about the trading dynamics and valuation.


Horizon Construction Dev IPO Trading - Subscription Rates Still Weak, Despite Cornerstone Support

Cross Asset Strategy

<ul>
<li>On 28 November, the Korean FSC made a public presentation of potential changes to regulations related to dividends, IPOs, and foreign investors registration which could reduce the long-term "Korea Discount." </li>
<li>FSC has announced that it will improve the dividend payment process of listed Korean companies by benchmarking more advanced countries such as the United States.</li>
<li>With regards to IPOs in Korea, the potential expansion of the price limit on the first day of trading post IPO from 90-200% (current) to 60-400% (revised) has been proposed.</li>
</ul>


On 28 November, the Korean FSC made a public presentation of potential changes to regulations related to dividends, IPOs, and foreign investors registration which could reduce the long-term "Korea Discount." 
FSC has announced that it will improve the dividend payment process of listed Korean companies by benchmarking more advanced countries such as the United States.
With regards to IPOs in Korea, the potential expansion of the price limit on the first day of trading post IPO from 90-200% (current) to 60-400% (revised) has been proposed.


Korean Financial Regulators Propose Changes to Dividends, IPOs, & Foreign Investor Registration

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>There are 7 adds and 7 deletes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> rebalance to be implemented at the close on 9 June.</li>
<li>There are also a bunch of stocks that will have changes applied to their free float. There were announced last week and are much less tracked.</li>
<li>The flows and impact on some of the float change names are significant and pre-positioning and passive flows could move the stocks over the next few days.</li>
</ul>


There are 7 adds and 7 deletes for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) rebalance to be implemented at the close on 9 June.
There are also a bunch of stocks that will have changes applied to their free float. There were announced last week and are much less tracked.
The flows and impact on some of the float change names are significant and pre-positioning and passive flows could move the stocks over the next few days.


KOSPI200 Index Rebalance: Float Changes, Flows & Trades

South Korea

Hyundai Motor Securities Co. Ltd. provides securities dealing, brokerage, and underwriting services to its clients.  The Company also offers other financial services, such as futures and options trading, loans, beneficial certificates, mutual funds, and online trading.

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Hyundai Motor Securities (001500 KS)

Hyundai Motor Securities Announces a Rights Offering Involving a 49% Shares Dilution

Hyundai Motors Securities announced a rights offering worth nearly 200 billion won involving a 49% shares dilution which is likely to drive its...

Douglas Kim

Horizon Construction Dev IPO Trading - Subscription Rates Still Weak, Despite Cornerstone Support

Horizon Construction Development (1887128D HK) raised around US$210m in its Hong Kong IPO. In this note, we will talk about the trading dynamics...

Ethan Aw

Korean Financial Regulators Propose Changes to Dividends, IPOs, & Foreign Investor Registration

The Korean FSC made a public presentation of potential changes to regulations related to dividends, IPOs, and foreign investors registration which...

Douglas Kim

KOSPI200 Index Rebalance: Float Changes, Flows & Trades

There are significant flows and impact on some stocks that have float changes at the upcoming KOSPI2 rebalance. With over 5 days ADV to buy,...

Brian Freitas

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