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>The LG Energy listing will likely distort the overall market flow. One is replacement trading with LG Chem in the local battery ETFs.
</li>
<li>One sure thing is that KODEX and TIGER will do this replacement trading. And these ETF operators will reportedly conduct it for three trading days from February 9-11. 
</li>
<li>LG Chem has recently undergone a significant share price correction, this amount of passive outflow is highly likely to directly impact share price movement during the 3-day rebalancing trading window. 
</li>
</ul>


The LG Energy listing will likely distort the overall market flow. One is replacement trading with LG Chem in the local battery ETFs.

One sure thing is that KODEX and TIGER will do this replacement trading. And these ETF operators will reportedly conduct it for three trading days from February 9-11. 

LG Chem has recently undergone a significant share price correction, this amount of passive outflow is highly likely to directly impact share price movement during the 3-day rebalancing trading window. 



Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

LG Energy Solution / Equity Capital Markets

<ul>
<li>LG Energy Solutions priced its IPO at the top of the range amid massive oversubscription numbers. </li>
<li>If anything it was slightly surprising that pricing was not raised above the range. </li>
<li>Nevertheless, we feel prospects here are mixed even if slightly tilted positive.</li>
</ul>


LG Energy Solutions priced its IPO at the top of the range amid massive oversubscription numbers. 
If anything it was slightly surprising that pricing was not raised above the range. 
Nevertheless, we feel prospects here are mixed even if slightly tilted positive.


LG Energy IPO – What to Watch Leading Into Listing Day

<ul>
<li>Foreign institutions received 60% of the total institutional allocation. They only accounted for 0.58% of the orders applied. Many of these are large foreign institutions with long-term holding tendencies.</li>
<li>The fact that they rarely make lockup pledges due to internal policies is in line with LG Energy's need for an immediate float rate of 10% while having long-term investors.</li>
<li>As a result, the nominal float rate is 8.85%. quite exquisite results as it is just enough to satisfy KOSPI 200's 10% minimum float rate rule.</li>
</ul>


Foreign institutions received 60% of the total institutional allocation. They only accounted for 0.58% of the orders applied. Many of these are large foreign institutions with long-term holding tendencies.
The fact that they rarely make lockup pledges due to internal policies is in line with LG Energy's need for an immediate float rate of 10% while having long-term investors.
As a result, the nominal float rate is 8.85%. quite exquisite results as it is just enough to satisfy KOSPI 200's 10% minimum float rate rule.


LG Energy Allocation Results: Immediate Float Confirmed at 8.8%

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

SGX Asia Currencies and Commodities Insights

<ul>
<li>
 This IPO led to unusually high interest from local active funds. This is evidenced by the order volume</li>
<li>
 Nevertheless, many local institutions must have felt burdened with LG Energy's valuation, so they wanted to avoid setting the offering price above the upper end.</li>
<li>
As for the relatively poor lockup result, the issuer's refusal to incentivize lockup to set the float rate to around 10% may also have played a part.</li>
</ul>



 This IPO led to unusually high interest from local active funds. This is evidenced by the order volume

 Nevertheless, many local institutions must have felt burdened with LG Energy's valuation, so they wanted to avoid setting the offering price above the upper end.

As for the relatively poor lockup result, the issuer's refusal to incentivize lockup to set the float rate to around 10% may also have played a part.


South Korea

LG Chem Ltd. is a chemical manufacturer.  The Company's products include petrochemicals, plastic resins, and engineering plastics.  LG Chem also produces industrial and electronic materials.

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LG Chem Ltd (051910 KS)

LG Chem Passive Outflow Summary

The LG Energy listing will likely distort the overall market flow. One is replacement trading with LG Chem in the local battery ETFs. This post...

Sanghyun Park

LG Energy IPO – What to Watch Leading Into Listing Day

LG Energy Solutions priced its IPO at the top of the range amid massive oversubscription numbers. Nevertheless, we feel prospects here are mixed...

Mio Kato

LG Energy Allocation Results: Immediate Float Confirmed at 8.8%

LG Energy's immediate float rate (on the listing day) and allocation results are officially out. This post details the results and explains what...

Sanghyun Park

SGX Asia Currencies and Commodities Insights

By Macro Hive SGX Asia Currencies Insights Ongoing exports strength is offsetting reduced yield pickup. We remain neutral CNH. We think...

Singapore Exchange Ltd (SGX)

LG Energy Bookbuilding: Detailed Results

This post details the bookbuilding results of LG Energy IPO and discusses noteworthy aspects shown by local institutions.

Sanghyun Park

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