Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/17600" target="_blank" data-smartkarma-citation="entities:17600:1">New Pride Corp (900100 KS)</a> announced a ₩36.2bil rights offer. This is a public offering, so there won't be subscription rights to trade. Pricing will be done as 3-day VWAP on Jan 9~11 at a 30% discount.</li>
<li>Supposedly, we can have ample opportunity to arb trade. This may be what the company is hoping. Simply, we wait until Jan 16~17 (subscription period) and see the spread. At this much discount, there must be a huge spread opening.</li>
<li>Proration risk can be much more annoying than a usual stockholder offering. In the previous public offering event by New Pride, subscription rate went as high as 370 to 1. It should be way much lower this time. But still this is risky enough.</li>
</ul>



New Pride Corp (900100 KS) announced a ₩36.2bil rights offer. This is a public offering, so there won't be subscription rights to trade. Pricing will be done as 3-day VWAP on Jan 9~11 at a 30% discount.
Supposedly, we can have ample opportunity to arb trade. This may be what the company is hoping. Simply, we wait until Jan 16~17 (subscription period) and see the spread. At this much discount, there must be a huge spread opening.
Proration risk can be much more annoying than a usual stockholder offering. In the previous public offering event by New Pride, subscription rate went as high as 370 to 1. It should be way much lower this time. But still this is risky enough.


New Pride Rights Offer: Tempting but Tricky

United States

New Pride Corp manufactures and distributes tires for intermodal transports. The Company products includes OEM and retread tires, and also provdies inspection service for intermodal transport related.

Price Gauge
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Dividend (Yield)	0.00

New Pride Rights Offer: Tempting but Tricky

New Pride Corp (900100 KS) announced a ₩36.2bil rights offer. This is a public offering, so there won't be subscription rights to trade. Pricing...

Sanghyun Park