Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>SNT Holdings (036530 KS) is issuing convertible bonds (CB) and exchangeable bonds (EB) totalling 148 billion won to improve its financial structure and secure funds for new business investments. </li>
<li>The investor in this CB and EB is IMM Credit &amp; Solution (ICS), which will acquire the entire amount through a private placement.</li>
<li><em><strong>This additional capital raise could result in S&amp;T Holdings potentially increasing its stake in Smec Co Ltd (099440 KS). </strong></em></li>
</ul>


SNT Holdings (036530 KS) is issuing convertible bonds (CB) and exchangeable bonds (EB) totalling 148 billion won to improve its financial structure and secure funds for new business investments. 
The investor in this CB and EB is IMM Credit &amp; Solution (ICS), which will acquire the entire amount through a private placement.
This additional capital raise could result in S&amp;T Holdings potentially increasing its stake in Smec Co Ltd (099440 KS). 


SNT Holdings: Issuing CB and EB Totalling 148 Billion Won

<ul>
<li>On 24 November, the SNT Group formalized its hostile takeover of Smec. S&amp;T Holdings  disclosed that it acquired an additional 5.46% stake in SMEC, raising its stake to 13.65%.</li>
<li>S&amp;T Holdings and SNT Group Chairman Choi combined own a 20.2% stake in SMEC. In comparison, the SMEC CEO Choi Young-seop owns a 9.75% stake in SMEC.</li>
<li>In our view, this is likely to lead to a potential fight for the control of SMEC's management rights, pushing up the share price of SMEC even further.</li>
</ul>


On 24 November, the SNT Group formalized its hostile takeover of Smec. S&amp;T Holdings  disclosed that it acquired an additional 5.46% stake in SMEC, raising its stake to 13.65%.
S&amp;T Holdings and SNT Group Chairman Choi combined own a 20.2% stake in SMEC. In comparison, the SMEC CEO Choi Young-seop owns a 9.75% stake in SMEC.
In our view, this is likely to lead to a potential fight for the control of SMEC's management rights, pushing up the share price of SMEC even further.


SNT Group - Formalizes a Hostile Takeover of SMEC

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Jul 18th. The aggregated short interest was USD9.4bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Kakaopay, Korzinc, SK Hynix, Samsung Sds, Hanwha Aerospace, Woori Financial, Alteogen, Samsung H.I..</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Jul 18th. The aggregated short interest was USD9.4bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Kakaopay, Korzinc, SK Hynix, Samsung Sds, Hanwha Aerospace, Woori Financial, Alteogen, Samsung H.I..


KRX Short Interest Weekly (Jul 18th): Kakaopay, Korzinc, SK Hynix, Samsung Sds, Hanwha Aerospace

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Feb 14th which has an aggregated short interest worth USD3.7bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in SK Hynix, Hanwha Ocean.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Feb 14th which has an aggregated short interest worth USD3.7bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in SK Hynix, Hanwha Ocean.


KRX Short Interest Weekly (Feb 14th): SK Hynix, Hanwha Ocean

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Index Rebalance

<ul>
<li>Early position buildup has minimal price impact, and even after the announcement, only a few stocks with a larger passive impact see significant movement.</li>
<li>Since these KRX sector indices include many small to mid-cap stocks, the price impact of constituent changes on ETF rebalancing day was quite noticeable.</li>
<li>Due to potential learning effects, build positions in predictable high-impact stocks before the announcement, then monitor flows and impacts to decide on targeting the ETF rebalancing trading day.</li>
</ul>


Early position buildup has minimal price impact, and even after the announcement, only a few stocks with a larger passive impact see significant movement.
Since these KRX sector indices include many small to mid-cap stocks, the price impact of constituent changes on ETF rebalancing day was quite noticeable.
Due to potential learning effects, build positions in predictable high-impact stocks before the announcement, then monitor flows and impacts to decide on targeting the ETF rebalancing trading day.


KRX Sector Indexes' Rebalancing Event, Often off Traders' Radar but with Significant Price Impacts

South Korea

S&T Motiv Co., Ltd. manufactures and markets a variety of automobile parts. The Company's products include motors, suspension modules, fuel rails, air bags, shock absorbers, and transmissions.  S&T Daewoo also produces car televisions, car navigation systems, and alarm systems.

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S&T Motiv (064960 KS)

SNT Holdings: Issuing CB and EB Totalling 148 Billion Won

SNT Holdings is issuing CB and EB totalling 148 billion won. This additional capital raise could result in S&T Holdings potentially increasing its...

Douglas Kim

SNT Group - Formalizes a Hostile Takeover of SMEC

On 2 December, it was announced that Smec Co Ltd (099440 KS)'s CEO Choi Young-seop purchased a total of 0.68mn shares (0.99% stake) in SMEC,...

Douglas Kim

KRX Short Interest Weekly (Jul 18th): Kakaopay, Korzinc, SK Hynix, Samsung Sds, Hanwha Aerospace

We analyzed KRX short interest report for the past week and highlighted short interest changes in Kakaopay, Korzinc, SK Hynix, Samsung Sds, Hanwha...

Ke Yan, CFA, FRM

KRX Short Interest Weekly (Feb 14th): SK Hynix, Hanwha Ocean

We analyzed KRX short interest report for the past week and highlighted short interest changes in SK Hynix, Hanwha Ocean.

Ke Yan, CFA, FRM

KRX Sector Indexes' Rebalancing Event, Often off Traders' Radar but with Significant Price Impacts

This post discusses KRX Sector Index rebalancing trading opportunities, which, due to being off traders' radar for two reasons, paradoxically lead...

Sanghyun Park

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