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

<p>SK Bio, as well expected, began the day with a 100% gain to the offering price and ended at a daily ceiling (+30%), making the total daily gain 160% from the offering price</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Market debut (March 18)"}'>Market debut (March 18)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Close"}'>Close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":169000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩169,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to opening"}'>- % to the opening price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-1]C[0]-R[0]C[1])/R[0]C[1]">30.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to IPO price"}'>- % to the IPO price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.6}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-2]C[0]-R[0]C[1])/R[0]C[1]">160.00%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Again unsurprisingly, it was all about local retail trading.</p><p>Local retail ended with a 176,243 net buy position and accounted for 77% of all trades.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Trade by investor type"}'>Trade by investor type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Retail"}'>Retail</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Inst."}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>Inst.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Foreign"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>Foreign</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Sell"}'>Sell</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":576646}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>576,646</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":102294}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>102,294</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":178783}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>178,783</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Buy"}'>Buy</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":752889}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>752,889</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20300}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>20,300</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":100850}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>100,850</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Net"}'>Net</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":176243}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-1]C[0]-R[-2]C[0]">176,243</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-81994}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-1]C[0]-R[-2]C[0]">-81,994</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-77933}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-1]C[0]-R[-2]C[0]">-77,933</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><div>
<p>Now, KOSPI 200 fast entry?</p>
<p>It now seems a done deal.</p>
<p>The current MC sits at ₩12.9T, the 29th place right behind Amorepacific.</p>
<p>It has to stay within the top 50 ordinary shares on KOSPI for the first 15 trading days.</p>
<p>Given the lockup release schedule, retail-driven trading will likely continue at least for the first 15 trading days, <strong>suggesting a less likelihood of price correction during the fast entry review period</strong>.</p>
<div><div><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"Float schedule"}'>Float schedule</td>
<td style="text-align: right; width: 220px;"><p>Float shares</p></td>
<td style="text-align: right; width: 193px;">% of SO</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"Immediate"}'>Immediate</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":8897510}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-7]C[0]+R[-6]C[0]+R[-5]C[0]">8,897,510</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.1163073202614379}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">11.63%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":9261890}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-9]C[0]">9,261,890</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.12107045751633987}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">12.11%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":12592890}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-12]C[0]">12,592,890</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.1646129411764706}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">16.46%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":15923890}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-13]C[0]">15,923,890</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.2081554248366013}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">20.82%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":72221990}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-15]C[0]+R[-18]C[0]">72,221,990</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.9440783006535948}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">94.41%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"1 year"}'>1 year</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":76712390}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-18]C[0]">76,712,390</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":1.002776339869281}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">100.28%</td>
</tr>
<tr><td colspan="3" style="width: 628px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table></div></div>
</div>

SK Bio, as well expected, began the day with a 100% gain to the offering price and ended at a daily ceiling (+30%), making the total daily gain 160% from the offering price





Market debut (March 18)

Close
₩169,000


- % to the opening price
30.00%


- % to the IPO price
160.00%

Source: KRX

Again unsurprisingly, it was all about local retail trading.Local retail ended with a 176,243 net buy position and accounted for 77% of all trades.








Trade by investor type
Retail
Inst.
Foreign


Sell
576,646
102,294
178,783


Buy
752,889
20,300
100,850


Net
176,243
-81,994
-77,933

Source: KRX


Now, KOSPI 200 fast entry?
It now seems a done deal.
The current MC sits at ₩12.9T, the 29th place right behind Amorepacific.
It has to stay within the top 50 ordinary shares on KOSPI for the first 15 trading days.
Given the lockup release schedule, retail-driven trading will likely continue at least for the first 15 trading days, suggesting a less likelihood of price correction during the fast entry review period.








Float schedule
Float shares
% of SO


Immediate
8,897,510
11.63%


15 days
9,261,890
12.11%


1 month
12,592,890
16.46%


3 months
15,923,890
20.82%


6 months
72,221,990
94.41%


1 year
76,712,390
100.28%

Source: DART




SK Bioscience to KOSPI 200 Is a Done Deal & A Likely Deletion

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sk-bioscience-co-ltd" target="_blank" data-smartkarma-citation="entities:31484:1" rel="noopener">SK Bioscience (302440 KS)</a> IPO is scheduled to be completed this week on March 18th. This IPO was on a near cruise control, scoring big points among many institutional and retail investors in the pre-IPO period. Nonetheless, in the past several days, a new development has taken place with numerous countries, including Germany, France, Italy, and Spain announcing that they will temporarily suspend <a href="https://edition.cnn.com/2021/03/15/europe/italy-lockdown-europe-coronavirus-monday-scli-intl/index.html" target="_blank" rel="noopener">AstraZeneca COVID-19 vaccinations</a> until further notice.</p><div class="content-highlight"><p><em>If we had to take an educated guess, we think that many investors that may have wanted to sell their shares of SK Bioscience at about 150,000 won to 200,000 won per share may now lower their high end expectations so that they may now be trying to sell the stock at about 100,000 won to 150,000 won per share. The high end range of 100,000 won to 150,000 won still represents a healthy upside from the IPO price but still less than the even higher levels that many investors were expecting from this IPO. Our base case price target of SK Bioscience remains 149,000 won per share (129% higher than the IPO price) or 11.5 trillion won in implied market cap.  </em></p></div>

SK Bioscience (302440 KS) IPO is scheduled to be completed this week on March 18th. This IPO was on a near cruise control, scoring big points among many institutional and retail investors in the pre-IPO period. Nonetheless, in the past several days, a new development has taken place with numerous countries, including Germany, France, Italy, and Spain announcing that they will temporarily suspend AstraZeneca COVID-19 vaccinations until further notice.If we had to take an educated guess, we think that many investors that may have wanted to sell their shares of SK Bioscience at about 150,000 won to 200,000 won per share may now lower their high end expectations so that they may now be trying to sell the stock at about 100,000 won to 150,000 won per share. The high end range of 100,000 won to 150,000 won still represents a healthy upside from the IPO price but still less than the even higher levels that many investors were expecting from this IPO. Our base case price target of SK Bioscience remains 149,000 won per share (129% higher than the IPO price) or 11.5 trillion won in implied market cap.  

Germany, France, Italy, & Spain Suspend AstraZeneca COVID-19 Vaccinations: Impact on SK Bioscience

<p>Below is the final allocation.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Type"}'>Type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Initial"}'>Initial</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Subscription"}'>Subscription</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Allocation"}'>Allocation</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4590000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>4,590,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4490400}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>4,490,400</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4490400}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>4,490,400</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1957}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>19.57%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional"}'>Institutional</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12622500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>12,622,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12622500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>12,622,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12622500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>12,622,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.55}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>55.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Retail"}'>Retail</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5737500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>5,737,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1957531110}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,957,531,110</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5837100}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>5,837,100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2543}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>25.43%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":22950000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])">22,950,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1974644010}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,974,644,010</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":22950000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])">22,950,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])">100.00%</td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>Below is the lockup pledge as a % of subscriptions.</p><p>Nearly 60% subscribed without lockup pledge.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 214.545px;" data-sheets-value='{"1":2,"2":"Lockup"}'>Lockup</td>
<td style="text-align: right; width: 185.455px;" data-sheets-value='{"1":2,"2":"Qty."}'>Qty.</td>
<td style="text-align: right; width: 163.636px;" data-sheets-value='{"1":2,"2":"% of subsc"}'>% of subscription</td>
</tr>
<tr>
<td style="width: 214.545px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 185.455px;" data-sheets-value='{"1":3,"3":2194034000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,194,034,000</td>
<td style="text-align: right; width: 163.636px;" data-sheets-value='{"1":3,"3":0.13627910091946424}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R53C2">13.63%</td>
</tr>
<tr>
<td style="width: 214.545px;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
<td style="text-align: right; width: 185.455px;" data-sheets-value='{"1":3,"3":3595764000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,595,764,000</td>
<td style="text-align: right; width: 163.636px;" data-sheets-value='{"1":3,"3":0.22334543814661778}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R53C2">22.33%</td>
</tr>
<tr>
<td style="width: 214.545px;" data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
<td style="text-align: right; width: 185.455px;" data-sheets-value='{"1":3,"3":3246456500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,246,456,500</td>
<td style="text-align: right; width: 163.636px;" data-sheets-value='{"1":3,"3":0.20164873151197776}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R53C2">20.16%</td>
</tr>
<tr>
<td style="width: 214.545px;" data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right; width: 185.455px;" data-sheets-value='{"1":3,"3":610574000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>610,574,000</td>
<td style="text-align: right; width: 163.636px;" data-sheets-value='{"1":3,"3":0.03792487981717738}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R53C2">3.79%</td>
</tr>
<tr>
<td style="width: 214.545px;" data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td style="text-align: right; width: 185.455px;" data-sheets-value='{"1":3,"3":9646828500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>9,646,828,500</td>
<td style="text-align: right; width: 163.636px;" data-sheets-value='{"1":3,"3":0.5991981503952372}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R53C2">59.92%</td>
</tr>
<tr>
<td style="width: 214.545px;" data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right; width: 185.455px;" data-sheets-value='{"1":3,"3":16099563214}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>16,099,563,214</td>
<td style="text-align: right; width: 163.636px;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R53C2">100.00%</td>
</tr>
<tr><td colspan="3" rowspan="1" style="width: 605.455px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>A little surprisingly, 85% of the allocation went to lockup pledgers.</p><p>What can be deducted from it? It indicates that this IPO may have attracted more long-term investors than what we usually see from Korea's local IPOs.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Lockup"}'>Lockup</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty."}'>Qty.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of alloc"}'>% of allocation</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3948100}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,948,100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3127827292533175}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R14C2">31.28%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.05160915032679739}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-2]/R28C2">5.16%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3331000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,331,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2638938403644286}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R14C2">26.39%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.04354248366013072}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-2]/R28C2">4.35%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3118610}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,118,610</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.24706753812636165}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R14C2">24.71%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.040766143790849675}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-2]/R28C2">4.08%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364380}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>364,380</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.02886749851455734}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R14C2">2.89%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.00476313725490196}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-2]/R28C2">0.48%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1860410}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,860,410</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.14738839374133492}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R14C2">14.74%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.02431908496732026}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-2]/R28C2">2.43%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12622500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>12,622,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R14C2">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.165}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-2]/R28C2">16.50%</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>Following is the post-IPO shareholding.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholder"}'>Post-IPO shareholding</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty."}'>Qty.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Lock-up"}'>Lock-up</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Chemical"}'>SK Chemical</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":52350000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>52,350,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6843137254901961}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">68.43%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4490400}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-17]C[2]">4,490,400</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.058698039215686275}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">5.87%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1 year"}'>1 year</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional"}'>Institutional</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12622500}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=sum(R[1]C[0]:R[5]C[0])">12,622,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.165}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">16.50%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - 6 months"}'>- 6 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3948100}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]">3,948,100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.05160915032679739}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">5.16%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - 3 months"}'>- 3 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3331000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]">3,331,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.04354248366013072}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">4.35%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - 1 month"}'>- 1 month</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3118610}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]">3,118,610</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.040766143790849675}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">4.08%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - 15 days"}'>- 15 days</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364380}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]">364,380</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.00476313725490196}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">0.48%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - None"}'>- None</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1860410}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]">1,860,410</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.02431908496732026}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">2.43%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Retail"}'>Retail</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5837100}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-22]C[2]">5,837,100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.07630196078431373}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">7.63%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Other"}'>Other</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1200000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[1]C[0]-R[-9]C[0]-R[-8]C[0]-R[-7]C[0]-R[-1]C[0]">1,200,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.01568627450980392}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">1.57%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":76500000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>76,500,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(R[-10]C[0]:R[-8]C[0])+R[-2]C[0]+R[-1]C[0]">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Below is the final allocation.









Type
Initial
Subscription
Allocation
%


ESOP
4,590,000
4,490,400
4,490,400
19.57%


Institutional
12,622,500
12,622,500
12,622,500
55.00%


Retail
5,737,500
1,957,531,110
5,837,100
25.43%


Total
22,950,000
1,974,644,010
22,950,000
100.00%

Source: DART

Below is the lockup pledge as a % of subscriptions.Nearly 60% subscribed without lockup pledge.







Lockup
Qty.
% of subscription


6 months
2,194,034,000
13.63%


3 months
3,595,764,000
22.33%


1 month
3,246,456,500
20.16%


15 days
610,574,000
3.79%


None
9,646,828,500
59.92%


Total
16,099,563,214
100.00%

Source: DART

A little surprisingly, 85% of the allocation went to lockup pledgers.What can be deducted from it? It indicates that this IPO may have attracted more long-term investors than what we usually see from Korea's local IPOs.








Lockup
Qty.
% of allocation
% of SO


6 months
3,948,100
31.28%
5.16%


3 months
3,331,000
26.39%
4.35%


1 month
3,118,610
24.71%
4.08%


15 days
364,380
2.89%
0.48%


None
1,860,410
14.74%
2.43%


Total
12,622,500
100.00%
16.50%

Source: DART

Following is the post-IPO shareholding.








Post-IPO shareholding
Qty.
%
Lock-up


SK Chemical
52,350,000
68.43%
6 months


ESOP
4,490,400
5.87%
1 year


Institutional
12,622,500
16.50%
-


- 6 months
3,948,100
5.16%
6 months


- 3 months
3,331,000
4.35%
3 months


- 1 month
3,118,610
4.08%
1 month


- 15 days
364,380
0.48%
15 days


- None
1,860,410
2.43%
None


Retail
5,837,100
7.63%
None


Other
1,200,000
1.57%
None


Total
76,500,000
100.00%
-

Source: DART



SK Bioscience IPO: Allocation & Lockup Schedule

SK Biobioscience IPO price hit the ceiling at ₩65,000, raising ₩1.5T with a ₩5T market cap.







Pricing (₩B)
Floor
Ceiling (final)


Price (₩)
₩49,000
₩65,000


Base deal size
1,124.6
1,491.8


- Institutional allotment
618.5
820.5


Implied market cap
3,748.5
4,972.5

Source: DART

Literally, all of the pricing sits at or above the high end.Despite several concerns, many investors must not be complaining about the price level.It is worth noting that foreign funds priced it a little less favorably than local investors.









By investor type
Institution
%
Demand
%


Local PO funds
513
35.04%
5,673,643,000
35.24%


Local BR/IA
32
2.19%
358,760,000
2.23%


Local pension/bank/insurance
281
19.19%
3,056,667,000
18.99%


Local others (hedge funds)
346
23.63%
3,927,753,000
24.40%


Foreign (foreign funds)
130
8.88%
1,150,736,214
7.15%


Foreign others (local hot money)
162
11.07%
1,932,004,000
12.00%


Total
1,464
100.00%
16,099,563,214
100.00%


Subscription rate
1,275.47

Source: DART











By price
Institution
%
Demand
%


Above high end
1,135
77.53%
12,982,935,500
80.64%


75-100% of high end
271
18.51%
2,592,017,714
16.10%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
0
0.00%
0
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
58
3.96%
524,610,000
3.26%


Total
1,464
100.00%
16,099,563,214
100.00%

Source: DART











Local PO funds
Institution
%
Demand
%


Above high end
412
80.31%
4,614,489,000
81.33%


75-100% of high end
55
10.72%
610,783,000
10.77%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
0
0.00%
0
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
46
8.97%
448,371,000
7.90%


Total
513
100.00%
5,673,643,000
100.00%

Source: DART











Local BR/IA
Institution
%
Demand
%


Above high end
23
71.88%
268,023,000
74.71%


75-100% of high end
9
28.13%
90,737,000
25.29%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
0
0.00%
0
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
0
0.00%
0
0.00%


Total
32
100.00%
358,760,000
100.00%

Source: DART











Local pension/bank/insurance
Institution
%
Demand
%


Above high end
233
82.92%
2,553,390,000
83.54%


75-100% of high end
43
15.30%
452,784,000
14.81%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
0
0.00%
0
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
5
1.78%
50,493,000
1.65%


Total
281
100.00%
3,056,667,000
100.00%

Source: DART











Local others (hedge funds)
Institution
%
Demand
%


Above high end
294
84.97%
3,412,833,000
86.89%


75-100% of high end
45
13.01%
489,174,000
12.45%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
0
0.00%
0
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
7
2.02%
25,746,000
0.66%


Total
346
100.00%
3,927,753,000
100.00%

Source: DART











Foreign (foreign funds)
Institution
%
Demand
%


Above high end
22
16.92%
240,862,500
20.93%


75-100% of high end
108
83.08%
909,873,714
79.07%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
0
0.00%
0
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
0
0.00%
0
0.00%


Total
130
100.00%
1,150,736,214
100.00%

Source: DART











Foreign others (local hot money)
Institution
%
Demand
%


Above high end
151
93.21%
1,893,338,000
98.00%


75-100% of high end
11
6.79%
38,666,000
2.00%


50-75% of high end
0
0.00%
0
0.00%


25-50% of high end
0
0.00%
0
0.00%


0-25% of high end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
0
0.00%
0
0.00%


Low end or below
0
0.00%
0
0.00%


Unspecified
0
0.00%
0
0.00%


Total
162
100.00%
1,932,004,000
100.00%

Source: DART



SK Bioscience IPO: Bookbuilding Results & KOSPI 200 Fast Entry

<ul>
<li>SK Bioscience announced an excellent IPO book building results on 8 March. The IPO price has been confirmed at 65,000 won per share, which is at the top of the IPO price range. At the IPO price of 65,000 won, the company's initial market cap will be 5.0 trillion won.</li>
<li>The total demand ratio of the SK Bioscience IPO was 1,275.5 to 1, which is very high. Of these institutional investors, 96.7% of them thought that the value of the company should be 65,000 won or more. Our base case valuation for the company is a market cap of 11.5 trillion won or <strong>149,000 won</strong> per share, which would represent a 129% upside from the IPO price of 65,000 won. </li>
<li>Despite the numerous positives about the SK Bioscience IPO, the biggest near-term and long-term problem of SK Bioscience is whether or not the COVID-19 vaccines of AstraZeneca, NovaVax, and other major global vaccine developers are safe or not.  Since 26 February (when COVID-19 vaccinations started in Korea), there have been <a href="https://blog.naver.com/jijisjungle/222264180891" target="_blank" rel="noopener">11 people</a> that have died in Korea after taking the AstraZeneca COVID-19 vaccines (death rate of 0.003%). For now, the Korean authorities have ruled out any association that may link the deaths of these 11 people with the COVID-19 vaccines.</li>
</ul>


SK Bioscience announced an excellent IPO book building results on 8 March. The IPO price has been confirmed at 65,000 won per share, which is at the top of the IPO price range. At the IPO price of 65,000 won, the company's initial market cap will be 5.0 trillion won.
The total demand ratio of the SK Bioscience IPO was 1,275.5 to 1, which is very high. Of these institutional investors, 96.7% of them thought that the value of the company should be 65,000 won or more. Our base case valuation for the company is a market cap of 11.5 trillion won or 149,000 won per share, which would represent a 129% upside from the IPO price of 65,000 won. 
Despite the numerous positives about the SK Bioscience IPO, the biggest near-term and long-term problem of SK Bioscience is whether or not the COVID-19 vaccines of AstraZeneca, NovaVax, and other major global vaccine developers are safe or not.  Since 26 February (when COVID-19 vaccinations started in Korea), there have been 11 people that have died in Korea after taking the AstraZeneca COVID-19 vaccines (death rate of 0.003%). For now, the Korean authorities have ruled out any association that may link the deaths of these 11 people with the COVID-19 vaccines.


Trading Strategy of SK Bioscience IPO Post Pricing

South Korea

SK Bioscience Co.,Ltd. operates biopharmaceutical businesses. The Company produces vaccines, sky cellflu prefilled syringes, sky cellflu quadrivalent prefilled syringes, varicella drugs, and other related products. SK Bioscience markets its products throughout South Korea.

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SK Bioscience (302440 KS)

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