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>Unlike typical Korean stock rights arbitrage, LG Display's significant equity offering and active stock futures trading anticipate a spread opening, akin to the recent Hanwha Ocean scenario.</li>
<li>In contrast to Hanwha Ocean, the absence of major sellers, like KDB, sets this event apart. LG Electronics, the major shareholder with a 37.9% stake, intends to participate.</li>
<li>Despite differences from Hanwha Ocean, LG Display's high retail shareholder presence implies a substantial likelihood of stock rights overhang, even without players like KDB.</li>
</ul>


Unlike typical Korean stock rights arbitrage, LG Display's significant equity offering and active stock futures trading anticipate a spread opening, akin to the recent Hanwha Ocean scenario.
In contrast to Hanwha Ocean, the absence of major sellers, like KDB, sets this event apart. LG Electronics, the major shareholder with a 37.9% stake, intends to participate.
Despite differences from Hanwha Ocean, LG Display's high retail shareholder presence implies a substantial likelihood of stock rights overhang, even without players like KDB.


Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. </li>
<li>The rights offering capital raise involves 142 million shares, which represent 39.7% of its existing outstanding shares. </li>
<li>We believe this rights offering will have a negative impact on LG Display's share price as it will significantly dilute existing shareholders. </li>
</ul>


LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. 
The rights offering capital raise involves 142 million shares, which represent 39.7% of its existing outstanding shares. 
We believe this rights offering will have a negative impact on LG Display's share price as it will significantly dilute existing shareholders. 


LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

<ul><li>Luxembourg startup seeks EUR30M to expand global 5G IoT satellite operations, aiming for increased connectivity worldwide.</li><li>South Korea focuses on utilizing nuclear power to boost exports and ensure energy security for the nation's future.</li><li>Next-generation iPhone 17 models will feature LTPO OLED panels from Samsung and LG Display, enhancing display quality for users.</li></ul>

Luxembourg startup seeks EUR30M to expand global 5G IoT satellite operations, aiming for increased connectivity worldwide.South Korea focuses on utilizing nuclear power to boost exports and ensure energy security for the nation's future.Next-generation iPhone 17 models will feature LTPO OLED panels from Samsung and LG Display, enhancing display quality for users.

Tech Supply Chain Tracker (02-Nov-2024): Luxembourg startup needs EUR30M for 5G IoT satellites.

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>While the short-selling ban for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> will remain in place until the first months of 2025, that does not prevent the index from pulling back.</li>
<li>Pullbacks, in this context, are an opportunity to buy, in the hope the index will rise higher from its current position.</li>
<li>Our models right now are showing a short-term WEEKLY OVERBOUGHT scenario coming in the next 2 weeks. Keep reading for more details.</li>
</ul>


While the short-selling ban for the KOSPI 200 INDEX will remain in place until the first months of 2025, that does not prevent the index from pulling back.
Pullbacks, in this context, are an opportunity to buy, in the hope the index will rise higher from its current position.
Our models right now are showing a short-term WEEKLY OVERBOUGHT scenario coming in the next 2 weeks. Keep reading for more details.


Taiwan Tech Focused Senior Analyst

Patrick Liao

Novatek Microelectronics Corp / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a> will initially use Novatek's DDIC (Display Driver IC) for the iPhone 16, but it will soon being replaced largely.</li>
<li>In 4Q24, there is a possibility of experiencing a decline, with a potential quarter-over-quarter decrease of approximately 5-10%.</li>
<li>The Chinese panel market continues to be a key battleground, and Novatek must navigate these challenges to remain competitive.</li>
</ul>



Apple (AAPL US) will initially use Novatek's DDIC (Display Driver IC) for the iPhone 16, but it will soon being replaced largely.
In 4Q24, there is a possibility of experiencing a decline, with a potential quarter-over-quarter decrease of approximately 5-10%.
The Chinese panel market continues to be a key battleground, and Novatek must navigate these challenges to remain competitive.


Novatek (3034.TT): To Utilizing on IPhone 16 DDIC Will Soon Be Largely Replaced by Korean Fabless.

South Korea

LG Display Co., Ltd. develops and manufactures digital display products.  The Company's products include thin film transistor-liquid crystal displays (TFT-LCD) for notebook and desktop computer monitors, TVs, mobile phones, and medical equipment.  LG Display provides its products mainly to overseas markets.

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LG Display (034220 KS)

Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering

This post offers a basic guide to arbitrage trading using stock rights in Korean equity offerings, with LG Display's recent announcement as an...

Sanghyun Park

LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. We believe this will have a negative...

Douglas Kim

Tech Supply Chain Tracker (02-Nov-2024): Luxembourg startup needs EUR30M for 5G IoT satellites.

Luxembourg startup seeks funding for global 5G IoT satellite expansion, South Korea boosts nuclear power for exports, iPhone 17 to feature LTPO...

Tech Supply Chain Tracker

EQD | KOSPI 200 May Pullback Soon...

Pullbacks on the KOSPI 200 INDEX are currently a buy opportunity, given the short-selling ban still in place. We predict a short-term WEEKLY...

Nico Rosti

Novatek (3034.TT): To Utilizing on IPhone 16 DDIC Will Soon Be Largely Replaced by Korean Fabless.

In 4Q24, Novatek faces potential decline in Chinese panel market, with a potential QoQ decrease of approximately 5-10%, and the demand may start...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering

This post offers a basic guide to arbitrage trading using stock rights in Korean equity offerings, with LG Display's recent announcement as an...

Sanghyun Park

LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. We believe this will have a negative...

Douglas Kim

Tech Supply Chain Tracker (02-Nov-2024): Luxembourg startup needs EUR30M for 5G IoT satellites.

Luxembourg startup seeks funding for global 5G IoT satellite expansion, South Korea boosts nuclear power for exports, iPhone 17 to feature LTPO...

Tech Supply Chain Tracker

EQD | KOSPI 200 May Pullback Soon...

Pullbacks on the KOSPI 200 INDEX are currently a buy opportunity, given the short-selling ban still in place. We predict a short-term WEEKLY...

Nico Rosti

Novatek (3034.TT): To Utilizing on IPhone 16 DDIC Will Soon Be Largely Replaced by Korean Fabless.

​In 4Q24, Novatek faces potential decline in Chinese panel market, with a potential QoQ decrease of approximately 5-10%, and the demand may start...

Patrick Liao

In 4Q24, Novatek faces potential decline in Chinese panel market, with a potential QoQ decrease of approximately 5-10%, and the demand may start...