Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Private Capital Markets

<ul>
<li>Kakao Mobility provides taxi, car chauffeur, navigation, and delivery services in Korea. Kakao Mobility's Kakao T app is the number one mobility company in Korea with 31 million members.</li>
<li>Kakao Mobility is considering both an IPO and a strategic sale of the company. MBK Partners is in discussions with Kakao Mobility for a controlling 40% stake in the company. </li>
<li>The company has achieved excellent growth in sales and profits. Kakao Mobility had sales of 546.5 billion won (up 95.1% YoY) and operating profit of 12.6 billion won in 2021.</li>
</ul>


Kakao Mobility provides taxi, car chauffeur, navigation, and delivery services in Korea. Kakao Mobility's Kakao T app is the number one mobility company in Korea with 31 million members.
Kakao Mobility is considering both an IPO and a strategic sale of the company. MBK Partners is in discussions with Kakao Mobility for a controlling 40% stake in the company. 
The company has achieved excellent growth in sales and profits. Kakao Mobility had sales of 546.5 billion won (up 95.1% YoY) and operating profit of 12.6 billion won in 2021.


Kakao Mobility: Number One Mobility Company in Korea

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A double dose of StubWorld this week, as <strong><a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a></strong>'s NAV discount narrowing looks to have run its course.</li>
<li>Preceding my comments on LG Copr are the current setup/unwind tables for Asia-Pacific Holdcos. </li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


A double dose of StubWorld this week, as LG Corp (003550 KS)'s NAV discount narrowing looks to have run its course.
Preceding my comments on LG Copr are the current setup/unwind tables for Asia-Pacific Holdcos. 
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


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

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.

<ul>
<li>Flows from the ETFs/index funds serve as a minimal flow for rebalancing trading at the close on June 9. The total AUM is ₩18.9T: ETFs ₩15.0T and index funds ₩3.9T.</li>
<li>There are only three trading days left until the rebalancing trading. At this point, a setup aimed at the NPS/Insurance's preemptive trading seems a bit off, timing-wise.</li>
<li>It seems more appropriate at this point to design a day basket-trading based on the minimal flow size on the day of rebalancing trading, June 9.</li>
</ul>


Flows from the ETFs/index funds serve as a minimal flow for rebalancing trading at the close on June 9. The total AUM is ₩18.9T: ETFs ₩15.0T and index funds ₩3.9T.
There are only three trading days left until the rebalancing trading. At this point, a setup aimed at the NPS/Insurance's preemptive trading seems a bit off, timing-wise.
It seems more appropriate at this point to design a day basket-trading based on the minimal flow size on the day of rebalancing trading, June 9.


KOSPI 200 Rebalancing Minimal Flow at the Close on June 9 For Day Basket-Trading

<ul>
<li>The question now is whether this event can lead to a structural uptrend in LG Corp. I am skeptical about this.</li>
<li>LG Corp took a preemptive action to increase its attractiveness as a dividend stock to prevent a share price decline ahead of the listing of LG CNS.</li>
<li>However, this measure does not address the root cause of LG Corp's massive NAV discount. So, I would consider a short position setup for LG Corp.</li>
</ul>


The question now is whether this event can lead to a structural uptrend in LG Corp. I am skeptical about this.
LG Corp took a preemptive action to increase its attractiveness as a dividend stock to prevent a share price decline ahead of the listing of LG CNS.
However, this measure does not address the root cause of LG Corp's massive NAV discount. So, I would consider a short position setup for LG Corp.


Short LG Corp on the Unsustainable Price Spike

South Korea

LG Corp. is a holding company, which operates subsidiaries including LG Electronics, LG Household & Health Care, LG Chem Ltd., and Dacom Corp. The Company's main business areas are electronics, chemicals, and household products manufacturing and telecommunications services.

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LG Corp (003550 KS)

Kakao Mobility: Number One Mobility Company in Korea

Kakao Mobility provides taxi, car chauffeur, navigation, and delivery services in Korea. Kakao Mobility's Kakao T app is the number one mobility...

Douglas Kim

StubWorld: LG Corp In Unwind Territory

If you had set up the stub, unwind here. The future listing of LG CNS will only add another layer to the structure, one which will not help narrow...

David Blennerhassett

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

KOSPI 200 Rebalancing Minimal Flow at the Close on June 9 For Day Basket-Trading

This post gathers the combined AUM of the local ETFs/index funds mirroring the KOSPI 200 and estimates the minimal passive flow on the rebalancing...

Sanghyun Park

Short LG Corp on the Unsustainable Price Spike

This post discusses why LG Corp's 10% price surge on Monday, driven by the improved shareholder return policies, should be a good entry point for a...

Sanghyun Park

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