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

HD Hyundai Heavy Industries  / Event-Driven

<ul>
<li>The stocks worth our attention are mostly IPO institutional lockup releases. In particular, LG Energy, Iljin HySolus, and Hyundai Heavy Industries will be of the most interest.</li>
<li>Most of these have undergone significant price corrections. Nevertheless, current prices significantly outperform the offering prices. So, the incentives for IPO institutional investors to realize profits should be pretty intense.</li>
<li>Kakao Pay's volume isn't that much. Even with a heavier release last time, it didn't meet our expectations. Probably it is because it is bottoming out at the current level.</li>
</ul>


The stocks worth our attention are mostly IPO institutional lockup releases. In particular, LG Energy, Iljin HySolus, and Hyundai Heavy Industries will be of the most interest.
Most of these have undergone significant price corrections. Nevertheless, current prices significantly outperform the offering prices. So, the incentives for IPO institutional investors to realize profits should be pretty intense.
Kakao Pay's volume isn't that much. Even with a heavier release last time, it didn't meet our expectations. Probably it is because it is bottoming out at the current level.


KOSPI Lockup Releases: Details & Trading Approaches

<ul>
<li>KOSPI Size Index Series rebalances twice a year in March and September. The base date is February 28. It is a three-month review, so, from December 1 to February 28.</li>
<li>In the KOSPI size index rebalancing, an increase in the buying volume of local institutions for stocks moving from LargeCap to MidCap is generally detected. </li>
<li>14 new MidCap entrants are expected to have a sizable passive impact.</li>
</ul>


KOSPI Size Index Series rebalances twice a year in March and September. The base date is February 28. It is a three-month review, so, from December 1 to February 28.
In the KOSPI size index rebalancing, an increase in the buying volume of local institutions for stocks moving from LargeCap to MidCap is generally detected. 
14 new MidCap entrants are expected to have a sizable passive impact.


KOSPI Size Index Series Rebalancing Screening Results

<ul>
<li>The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.</li>
<li>LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.</li>
<li>F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.</li>
</ul>


The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.
LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.
F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.


KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>In this report, we review our IPO investment research in 2021, including the performance of our calls.</li>
<li>We made 37 investment calls on IPOs this year, of which 28 had positive ratings on the IPOs and 9 had negative ratings.</li>
<li>The 28 stocks (positive ratings) were up 26.1% on average from their IPO prices. The 9 stocks (negative ratings) were up only 4.9% on average from their IPO prices.</li>
</ul>


In this report, we review our IPO investment research in 2021, including the performance of our calls.
We made 37 investment calls on IPOs this year, of which 28 had positive ratings on the IPOs and 9 had negative ratings.
The 28 stocks (positive ratings) were up 26.1% on average from their IPO prices. The 9 stocks (negative ratings) were up only 4.9% on average from their IPO prices.


SubscriptionIljin Hysolus was decided at ₩34,300, which is the upper end of the indicative price band. As a result, Iljin Hysolus raises ₩373.6B through this IPO, with a market cap of ₩1.25T.Aggressive IPO pricing could be expected from a fairly favorable institutional response in the bookbuilding. As the competition rate for institutional subscriptions recorded 1,471 to 1, it was again close to a historical record.Iljin Hysolus also raised more than ₩36T in margin in retail subscriptions. This is by far the highest level among IPOs of this size (around ₩1T).









Subscription by institution type
Institution
%
Demand
%


1. Local publicly raised funds
256
15.89%
1,442,953,000
16.37%


2. Local brokerages/investment advisories
19
1.18%
111,838,000
1.27%


3. Local pensions, funds managing proprietary assets, banks, and insurance companies
225
13.97%
1,198,819,000
13.60%


4. Local others (discretionary investment companies, mostly local hedge funds)
764
47.42%
4,215,805,000
47.83%


5. Foreign (foreign IPO funds &amp; hedge funds)
125
7.76%
674,141,000
7.65%


6. Foreign others (mostly local hot money)
222
13.78%
1,170,285,000
13.28%


Total
1,611
100.00%
8,813,841,000
100.00%


Institutional subscription rate
1,471.01

Source: DART

And virtually all institutions, regardless of institution type, put prices in the upper end of the indicative price band.








Pricing by institution type
Above the upper end + Unspecified
% of total demands
Holding tendencies


1. Local publicly raised funds
94.53%
15.83%
Long-term


2. Local brokerages/investment advisories
89.47%
1.16%
Short-term


3. Local pensions, funds managing proprietary assets, banks, and insurance companies
92.00%
12.84%
Long-term


4. Local others (discretionary investment companies, mostly local hedge funds)
95.68%
46.15%
Short-term


5. Foreign (foreign IPO funds &amp; hedge funds)
98.40%
7.65%
Long or short-term, depends


6. Foreign others (mostly local hot money)
91.44%
11.99%
Short-term

Source: DART

AllocationIn the ESOP subscription, more forfeited shares occurred than expected. As a result, institutional allocation rose to 66.9%, and retail took 30%. Compared to post-IPO SO, institutional investors will hold 20.07%, retail will retain 9%, and ESOP will sit on 0.93%.The allocation ratio among institutional investors is also quite ideal. The proportion of locally publicly raised funds and pension funds with long-term holding tendencies (nearly half of the institutional offering) is also not bad, given its size. In addition, it is a good start for a company of this size by securing foreign ownership of more than 7%, which can be said to be an indicator of increasing external credibility in the initial stage of listing.









Allocation by investor type
Initial allocation
% of the institutional offering
% of the total offering
% of post-IPO SO


Institutional
55.00%
66.90%
66.90%
20.07%


1. Local publicly raised funds
-
36.20%
24.22%
7.26%


2. Local Br/IA
-
1.66%
1.11%
0.33%


3. Local pension, etc.
-
11.20%
7.49%
2.25%


4. Local others
-
15.94%
10.67%
3.20%


5. Foreign
-
34.65%
23.18%
6.95%


6. Foreign, other
-
0.35%
0.23%
0.07%


Retail
25.00%
-
30.00%
9.00%


ESOP
20.00%
-
3.10%
0.93%

Source: DART



Iljin Hysolus IPO: Allocation, Lockups, & Float Schedule

South Korea

Iljin Hysolus Co Ltd operates environmental problem solving businesses. The Company provides hydrogen solutions, CNG solutions, diesel solutions and other services. Iljin Hysolus conducts businesses in South Korea.

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

Iljin Hysolus (271940 KS)

KOSPI Lockup Releases: Details & Trading Approaches

This post details KOSPI lockup releases from February 20 to early May. And it discusses trading approaches for the stocks of the most interest.

Sanghyun Park

KOSPI Size Index Series Rebalancing Screening Results

This post has the screening results of the KOSPI Size Index Series rebalancing: 14 new MidCap entrants are expected to have a sizable passive impact.

Sanghyun Park

KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

This post has the screening results of the KOSPI 200 rebalancing, with a focus on prediction likelihood, special considerations, and passive impacts.

Sanghyun Park

Review of Our IPO Research in 2021

We review our IPO investment research in 2021. The 28 stocks (positive ratings) were up 26.1% (average) from IPO prices. The 9 stocks (negative...

Douglas Kim

Iljin Hysolus IPO: Allocation, Lockups, & Float Schedule

This post summarizes the allocation/lockup results and float schedule of the red hot local IPO, Iljin Hysolus, a hydrogen solution provider.

Sanghyun Park

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)