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>The KRX has just confirmed SK IE Tech's fast entry into KOSPI 200 for June 11.</p><p>As pre-announced, SK IE Technology replaces HDC Holdings for its entry into KOSPI 200. As for KRX 100, it replaces Kolmar Korea.</p><table class="table table-striped">
<colgroup>
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<col width="100">
<col width="100">
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<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KODEX 200"}'>KODEX 200</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"Addition"}'>Addition</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"Deletion"}'>Deletion</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 200"}'><strong>KOSPI 200</strong></td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>SK IE Technology Co Ltd</strong></td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'><strong>361610</strong></td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"HDC Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>HDC Holdings Co Ltd</strong></td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"012630"}' data-sheets-formula='="012630"'><strong>012630</strong></td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 200 Energy Chemical"}'>KOSPI 200 Energy &amp; Chemicals</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK IE Technology Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'>361610</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 200 Construction"}'>KOSPI 200 Constructions</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"HDC Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>HDC Holdings Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"012630"}' data-sheets-formula='="012630"'>012630</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 200 Mid &amp; Small Cap"}'>KOSPI 200 MidSmallCap</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"Hyundai Marine &amp; Fire Insurance Co., Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyundai Marine &amp; Fire</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"001450"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="001450"'>001450</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"HDC Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>HDC Holdings Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"012630"}' data-sheets-formula='="012630"'>012630</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI ex KOSPI 200"}'>KOSPI 200 ex-KOSPI</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"HDC Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>HDC Holdings Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"012630"}' data-sheets-formula='="012630"'>012630</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK IE Technology Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'>361610</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 200 ex mega cap"}'>KOSPI 200 ex-TOP</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK IE Technology Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'>361610</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"HDC Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>HDC Holdings Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"012630"}' data-sheets-formula='="012630"'>012630</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 200 Factor-Weighted Series"}'>KOSPI 200 Factor Tilt Series</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK IE Technology Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'>361610</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 100"}'>KOSPI 100</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK IE Technology Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'>361610</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"Hyundai Marine &amp; Fire Insurance Co., Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyundai Marine &amp; Fire</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"001450"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="001450"'>001450</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KOSPI 50"}'>KOSPI 50</td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK IE Technology Co Ltd</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'>361610</td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"Amorepacific Group"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Amorepacific Group</td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"002790"}' data-sheets-formula='="002790"'>002790</td>
</tr>
<tr>
<td style="width: 172.727px;" data-sheets-value='{"1":2,"2":"KRX 100"}'><strong>KRX 100</strong></td>
<td style="width: 151.818px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>SK IE Technology Co Ltd</strong></td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='="361610"'><strong>361610</strong></td>
<td style="width: 159.091px;" data-sheets-value='{"1":2,"2":"Kolmar Korea Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Kolmar Korea Co Ltd</strong></td>
<td style="width: 78.1818px;" data-sheets-value='{"1":2,"2":"161890"}' data-sheets-formula='="161890"'><strong>161890</strong></td>
</tr>
<tr><td colspan="5" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p><a href="http://global.krx.co.kr/board/GLB0501070000/bbs#view=20417" target="_blank" rel="noopener">Here is the link to the KRX announcement.</a></p>

The KRX has just confirmed SK IE Tech's fast entry into KOSPI 200 for June 11.As pre-announced, SK IE Technology replaces HDC Holdings for its entry into KOSPI 200. As for KRX 100, it replaces Kolmar Korea.









KODEX 200
Addition
Ticker
Deletion
Ticker


KOSPI 200
SK IE Technology Co Ltd
361610
HDC Holdings Co Ltd
012630


KOSPI 200 Energy &amp; Chemicals
SK IE Technology Co Ltd
361610
None
-


KOSPI 200 Constructions
None
-
HDC Holdings Co Ltd
012630


KOSPI 200 MidSmallCap
Hyundai Marine &amp; Fire
001450
HDC Holdings Co Ltd
012630


KOSPI 200 ex-KOSPI
HDC Holdings Co Ltd
012630
SK IE Technology Co Ltd
361610


KOSPI 200 ex-TOP
SK IE Technology Co Ltd
361610
HDC Holdings Co Ltd
012630


KOSPI 200 Factor Tilt Series
SK IE Technology Co Ltd
361610
None
-


KOSPI 100
SK IE Technology Co Ltd
361610
Hyundai Marine &amp; Fire
001450


KOSPI 50
SK IE Technology Co Ltd
361610
Amorepacific Group
002790


KRX 100
SK IE Technology Co Ltd
361610
Kolmar Korea Co Ltd
161890

Source: KRX

Here is the link to the KRX announcement.

SK IE Tech KOSPI 200 Fast-Entry Confirmed for June 11

What would be a real-world passive money size tracking KOSPI 200?My latest estimation is ₩80 trillion, and here is a breakdown of my estimation.ETFsWe currently have 17 local ETFs mirroring KOSPI 200, including KODEX 200 (₩5.5T) and TIGER 200 (₩2.3T). Their combined market value amounts to ₩16.5T.







Local ETFs directly mirroring KOSPI 200
Ticker
Market cap as of today (June 1, 2021)


YURIE TREX 200 ETF
108590
₩13.0B


Kiwoom KOSEF200 Total Return ETF
294400
₩493.3B


Kyobo AXA Power K200 ETF
152870
₩28.6B


Samsung KODEX 200 Total Return ETF
278530
₩1,470.5B


Mirae Asset TIGER Leverage ETF
123320
₩32.1B


KIM KINDEX Leverage ETF
152500
₩11.1B


HANWHA Arirang 200 ETF
152100
₩853.6B


Samsung KODEX 200 ETF
069500
₩5,446.8B


Kiwoom KOSEF200 ETF
069660
₩542.8B


Mirae Asset TIGER200 ETF
102110
₩2,283.6B


KIM KINDEX 200 ETF
105190
₩751.7B


Samsung KODEX Leverage Derivatives ETF
122630
₩1,722.2B


KB KBSTAR 200 Securities ETF
148020
₩1,168.8B


NH-Amundi HANARO 200 ETF
293180
₩655.5B


NH-Amundi HANARO 200TR ETF
332930
₩222.4B


KIM KINDEX 200TotalReturn ETF
332500
₩340.5B


Shinhan SMART 200 Total Return ETF
295040
₩449.9B


- Total
-
₩16,486.4B

Source: KRX

Index funds39 local index funds are currently tracking KOSPI 200, including the Kyobo AXA Power Index with an AUM of ₩1.3T. Their combined AUM totals ₩3.7T.






Local Index funds directly mirroring KOSPI 200
Assets under management as of today (June 1, 2021)


Kiwoom New Frontier Index Plus αF- 1 [Equity-Derivative] A1
₩17.5B


Kiwoom e-Alpha Index 1 [Equity]
₩11.0B


Kiwoom Korea Index 1 [Equity] C-e
₩28.1B


Kiwoom Korea Happy Pension Index 1 [Equity]
₩16.6B


Korea Investment Index Plus 1 [Equity-Derivative] (A)
₩28.4B


BNKK200 Index (Equity-Derivative) ClassA
₩25.4B


KB Star Power Index Korea [Equity-Derivative] C-E
₩18.3B


Hungkuk Index Alpha [Equity-Derivative] C-f
₩17.9B


Daishin Index Value [Equity] ClassC-F
₩130.5B


Mirae Asset Market Plus [Equity] Type F
₩11.8B


Consus Moebius 1 200 Index (Equity-Derivative) Class C
₩11.0B


IBKKOSPI200 Index 1 [Equity] Type A
₩39.8B


Truston Index Alpha s [Equity-Derivative] C
₩14.5B


Hyundai KOSPI 200 Index Type C-f
₩10.2B


DGB Index Plus 1 [Equity-Derivative] A
₩27.6B


Woori KOSPI200 Index 1 (Equity-Derivative) ClassC-e
₩49.1B


Kyobo AXA Power Index 2 [Equity] ClassA1
₩22.5B


East Spring Korea Index [Equity] Class C-F
₩207.0B


Mirae KOSPI 200 Index 1 [Equity] Type C-e
₩164.0B


Kyobo AXA Power Index 1 [Equity] Class A 1
₩332.0B


Kyobo AXA Power Index 3 [Equity] ClassA
₩12.6B


Daishin KOSPI200 Index [Equity-Derivative] ClassC1
₩64.1B


Kyobo AXA Power Index 1 (Equity-Derivative) ClassA
₩1,277.0B


DB Index Haeohreum Alpha [Equity-Derivative] ClassA
₩15.5B


Hana UBS Umbrella New Index K- 1 [Equity-Derivative] ClassC
₩12.9B


Samsung Retirement Pension Index 1 [Equity] C
₩138.7B


Korea Investment &amp; Cruise F2.8 Index [Equity] (A)
₩14.1B


KB Index Annuity [Equity] C
₩20.6B


Samsung Index Alpha 1 [Equity-Derivative] (A)
₩18.6B


Samsung Pension Korea Index [Equity-Derivative]
₩34.6B


Samsung Classic Index Pensions 1 [Equity] _C
₩180.6B


KB Star Korea Index [Equity] C-E class
₩88.8B


Samsung Premium Index A [Equity-Derivative]
₩74.2B


Hanwha Smart ++ Index [Equity] C / C2β
₩240.4B


Feynman Index Premium 2 [Equity-Derivative]
₩18.8B


Samsung Index Plus 1 [Equity-Derivative] (C 1)
₩49.7B


KB Star Korea Index [Equity-Derivative] C
₩54.1B


NH-Amundi Premier Index [Equity-Derivative] ClassA
₩26.7B


Hyundai Investment Index 1 Alpha [Equity-Derivative] C-I
₩135.5B


- Total
₩3,660.7B

Source: KG Zeroin

National Pension Service (NPS)Now, we need to add NPS. In 2019, the internal (direct) management accounted for 54.15% of the domestic equity, whereas the external (consignment) management was responsible for 45.85%. Only the internal management operates passive funds, which accounted for 33.75% of the total domestic equity.The total domestic equity at March-end of this year was ₩178.7T. Assuming the same 33.75% weight for the passive in the domestic equity churns out ₩60.3T for the local passive funds within the NPS. An assumed 70% of this ₩60.3T would be ₩42.2T, supposedly tracking KOSPI 200. 70% should be a conservative assumption as their BM index for domestic equity is KOSPI.









NPS asset allocation
FY2019, amount
FY2019, weight
FY2021 March, amount
Directly mirroring KOSPI 200 at an assumed 70% of the total passive funds


Internal (direct) management
₩71,612.1B





- Active
₩26,976.9B
20.40%




- Passive
₩44,635.2B
33.75%
₩60,301.4B
₩42,211.0B


External (consignment) management
₩60,641.9B





- Active
₩60,641.9B
45.85%




- Passive
₩0.0B
0.00%




Total domestic Equity
₩132,254.0B

₩178,673.0B


Source: NPS

Variable insurance index fundsLastly, we have variable insurance index funds. A vast majority of the local variable insurance index funds are tracking KOSPI 200. I don't have the latest figure, but the FY2019 year-end data (compiled by YONHAP INFOMAX) shows that the combined AUM of these funds amounted to about ₩17~18T.Given the relatively flat yearly growth among the local insurance companies, I don't expect to see a substantial change in the combined AUM last year. So, ₩18T would be a safe estimate.Adding all four spits out ₩80.4T, supposedly total local passive money mirroring KOSPI 200 at this point.
₩80T estimation breakdown

ETFs
₩16.5T


Index funds
₩3.7T


National Pension Service - Passive
₩42.2T


Variable Insurance Index funds
₩18.0T


 - Total
₩80.4T

Source: KG Zeroin, KRX, NPS, &amp; YONHAP INFOMAX


Why I Estimate Total Local Passive Money Tracking KOSPI 200 at ₩80T? Here Is a Breakdown

<p>This morning, we had another interesting piece of data, exclusively put out by a local news outlet named eDaily.</p><p>eDaily got the local and foreign institutional breakdown of the SK IE Tech's post-IPO lockup releases.</p><p><a href="https://www.edaily.co.kr/news/read?newsId=01082406629054496&amp;mediaCodeNo=257" target="_blank" rel="noopener">Here is the link to the news report.</a></p><p>The regulatory filing contains only the aggregate data of the post-IPO institutional lockup release schedule. Even the institutional allocation data doesn't contain a breakdown between local and foreign institutions.</p><p>Then, where did eDaily get the breakdown data? eDaily got it from one of the national assembly members (Yu Eui-dong, the People Power party), who made a special request to the local authority.</p><hr><h2>Breakdown</h2><p>12.15M shares went to institutional allocation, representing 17.04% of the outstanding shares. 4.3M shares had no lockup, meaning 7.84M shares (11% of the SO) carry lockups from 15 days to 6 months.</p><table class="table table-striped">
<colgroup>
<col width="250">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Float estimation"}'>Float estimation</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"Last filed"}'>Last filed</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"Release date"}'>Release date</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Major shareholder"}'>Major shareholder</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":49907592}' data-sheets-formula="=43633432+6274160">49,907,592</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.6999898678205009}' data-sheets-formula="=R[0]C[-1]/R2C5">70.00%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44327}'>11-May-21</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Executives"}'>Executives</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0}'>0</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0}' data-sheets-formula="=R[0]C[-1]/R2C5">0.00%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":2823956}'>2,823,956</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.03960801368999951}' data-sheets-formula="=R[0]C[-1]/R2C5">3.96%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":" - Non float"}'>- Non-float</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":52731548}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])">52,731,548</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.7395978815105004}' data-sheets-formula="=R[0]C[-1]/R2C5">73.96%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 6 months"}'><strong>Institutional lockups - 6 months</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":3020988}'><strong>3,020,988</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.0423715291815185}' data-sheets-formula="=R[0]C[-1]/R2C5"><strong>4.24%</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44511}'>11-Nov-21</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 3 months"}'><strong>Institutional lockups - 3 months</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":2087672}'><strong>2,087,672</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.02928110110647215}' data-sheets-formula="=R[0]C[-1]/R2C5"><strong>2.93%</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44419}'>11-Aug-21</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 1 month"}'><strong>Institutional lockups - 1 month</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":2700264}'><strong>2,700,264</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.037873144439436325}' data-sheets-formula="=R[0]C[-1]/R2C5"><strong>3.79%</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":43993}'>11-Jun-20</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 15 days"}'><strong>Institutional lockups - 15 days</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":35922}'><strong>35,922</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.0005038318825690495}' data-sheets-formula="=R[0]C[-1]/R2C5"><strong>0.05%</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44342}'>26-May-21</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional - no lockup"}'><strong>Institutional - no lockup</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":4304198}'><strong>4,304,198</strong></td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.06036947222565385}' data-sheets-formula="=R[0]C[-1]/R2C5"><strong>6.04%</strong></td>
<td style="text-align: right; width: 93.6364px;">-</td>
<td style="text-align: right; width: 93.6364px;">-</td>
</tr>
<tr>
<td style="width: 265.455px;"><strong> - Total institutional allocation</strong></td>
<td style="text-align: right; width: 93.6364px;"><strong>12,149,044</strong></td>
<td style="text-align: right; width: 93.6364px;"><strong>17.04%</strong></td>
<td style="text-align: right; width: 93.6364px;">-</td>
<td style="text-align: right; width: 93.6364px;">-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Float, excl. inst lockups"}'>Float, excl. inst lockups</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":10721198}' data-sheets-formula="=R[-12]C[3]-R[-6]C[0]-sum(R[-5]C[0]:R[-2]C[0])">10,721,198</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.1503725118795036}' data-sheets-formula="=R[0]C[-1]/R2C5">15.04%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Float, incl. inst lockups"}'>Float, incl. inst lockups</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":18566044}' data-sheets-formula="=R[-1]C[0]+sum(R[-6]C[0]:R[-3]C[0])">18,566,044</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.2604021184894996}' data-sheets-formula="=R[0]C[-1]/R2C5">26.04%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;"> - Total retail allocation</td>
<td style="text-align: right; width: 93.6364px;">6,417,000</td>
<td style="text-align: right; width: 93.6364px;">9.00%</td>
<td style="text-align: right; width: 93.6364px;">-</td>
<td style="text-align: right; width: 93.6364px;">-</td>
</tr>
<tr><td colspan="5" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; DART"}'>Source: KRX FIND &amp; DART</td></tr>
</tbody>
</table><p>Now, it is a bit shocking. Of the 17.04% institutional allocation, a whopping 9.05% went to foreign institutions. The remaining 7.99% found local institutions as their owners. It is not common to see local institutional allocation falls below 50% of the total institutional allocation.</p><p>Most local institutions have a 3~6 month lockup, whereas more than half of the foreign institutions had no lockup. Nearly all the foreign institutions having lockups fall on a 1-month lockup, which expires on June 11, the same day as the KOSPI 200 application date.</p><table class="table table-striped">
<colgroup>
<col width="250">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Institutional voluntary lockups"}'>Institutional voluntary lockups</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":2,"2":"Local institutions, as a % of SO"}'>Local institutions, as a % of SO</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":2,"2":"Foreign institutions, as a % of SO"}'>Foreign institutions, as a % of SO</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.040516750942849435}' data-sheets-formula="=R[0]C[2]/R2C5">4.05%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.0018547746422366302}' data-sheets-formula="=R[0]C[2]/R2C5">0.19%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.02896254440021176}' data-sheets-formula="=R[0]C[2]/R2C5">2.90%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.000430572684804932}' data-sheets-formula="=R[0]C[2]/R2C5">0.04%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"1 month"}'><strong>1 month</strong></td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.007471720230905694}' data-sheets-formula="=R[0]C[2]/R2C5"><strong>0.75%</strong></td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.030405055742379047}' data-sheets-formula="=R[0]C[2]/R2C5"><strong>3.04%</strong></td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.00007702804361758446}' data-sheets-formula="=R[0]C[2]/R2C5">0.01%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.000430572684804932}' data-sheets-formula="=R[0]C[2]/R2C5">0.04%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"No lockup"}'><strong>No lockup</strong></td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.0028765659442251484}' data-sheets-formula="=R[0]C[2]/R2C5"><strong>0.29%</strong></td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.057373493519614724}' data-sheets-formula="=R[0]C[2]/R2C5"><strong>5.74%</strong></td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Total"}'><strong> - Total, as a % of SO</strong></td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.07990460956180961}' data-sheets-formula="=R[0]C[2]/R2C5"><strong>7.99%</strong></td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.09049446927384026}' data-sheets-formula="=R[0]C[2]/R2C5"><strong>9.05%</strong></td>
</tr>
<tr><td colspan="3" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; DART"}'>Source: KRX FIND &amp; DART</td></tr>
</tbody>
</table><p>The foreign institutions-owned immediately available shares amount to about 4M. The foreign net trade on May 11~28 is 2.8M shares. At least nearly three-fourths of these 4M shares must have flowed into the market right after the IPO.</p><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/210/141/original/Daily+foreign+net+trade+%281%29.png?1622436583" class="editor-image img-responsive" data-smartkarma-image-id="210141"></figure></section></section>

This morning, we had another interesting piece of data, exclusively put out by a local news outlet named eDaily.eDaily got the local and foreign institutional breakdown of the SK IE Tech's post-IPO lockup releases.Here is the link to the news report.The regulatory filing contains only the aggregate data of the post-IPO institutional lockup release schedule. Even the institutional allocation data doesn't contain a breakdown between local and foreign institutions.Then, where did eDaily get the breakdown data? eDaily got it from one of the national assembly members (Yu Eui-dong, the People Power party), who made a special request to the local authority.Breakdown12.15M shares went to institutional allocation, representing 17.04% of the outstanding shares. 4.3M shares had no lockup, meaning 7.84M shares (11% of the SO) carry lockups from 15 days to 6 months.









Float estimation
Shares
% of SO
Last filed
Release date


Major shareholder
49,907,592
70.00%
11-May-21
-


Executives
0
0.00%
-
-


ESOP
2,823,956
3.96%
-
-


- Non-float
52,731,548
73.96%
-
-


Institutional lockups - 6 months
3,020,988
4.24%
-
11-Nov-21


Institutional lockups - 3 months
2,087,672
2.93%
-
11-Aug-21


Institutional lockups - 1 month
2,700,264
3.79%
-
11-Jun-20


Institutional lockups - 15 days
35,922
0.05%
-
26-May-21


Institutional - no lockup
4,304,198
6.04%
-
-


 - Total institutional allocation
12,149,044
17.04%
-
-


Float, excl. inst lockups
10,721,198
15.04%
-
-


Float, incl. inst lockups
18,566,044
26.04%
-
-


 - Total retail allocation
6,417,000
9.00%
-
-

Source: KRX FIND &amp; DART

Now, it is a bit shocking. Of the 17.04% institutional allocation, a whopping 9.05% went to foreign institutions. The remaining 7.99% found local institutions as their owners. It is not common to see local institutional allocation falls below 50% of the total institutional allocation.Most local institutions have a 3~6 month lockup, whereas more than half of the foreign institutions had no lockup. Nearly all the foreign institutions having lockups fall on a 1-month lockup, which expires on June 11, the same day as the KOSPI 200 application date.







Institutional voluntary lockups
Local institutions, as a % of SO
Foreign institutions, as a % of SO


6 months
4.05%
0.19%


3 months
2.90%
0.04%


1 month
0.75%
3.04%


15 days
0.01%
0.04%


No lockup
0.29%
5.74%


 - Total, as a % of SO
7.99%
9.05%

Source: KRX FIND &amp; DART

The foreign institutions-owned immediately available shares amount to about 4M. The foreign net trade on May 11~28 is 2.8M shares. At least nearly three-fourths of these 4M shares must have flowed into the market right after the IPO.

SK IE Tech Post-IPO Lockup Releases: Local & Foreign Institutional Breakdown

<p>The KRX confirmed that</p><ul>
<li>If SK IE Technology satisfies the requirements for an exceptional addition of newly listed large-scale companies, it replaces HDC in the upcoming June rebalancing.</li>
<li>The KRX will post the replacement on the KRX index website on June 2.</li>
</ul><p>SK IE Tech's fast entry into KOSPI 200 should be a done deal as its 10-day average daily market cap of ₩10.26T puts it at the 35th spot right behind Korean Air Lines.</p><p>The 50th spot is CJ Cheiljedang, with a 10-day average daily market cap of ₩6.85T, requiring SK IE Tech to plunge 33.23% to fall below CJ Cheiljedang.</p><h2>Free float estimation</h2><p>SK IE Tech's non-float is 73.96%. The immediate float sits at 15.04%, with an 11.00% stake residing in the institutional lockups. <strong>The KRX includes institutional voluntary lockups in the float shares for the index calculation. </strong>So, <strong>26.04%</strong> should be our index float for KOSPI 200.</p><table class="table table-striped">
<colgroup>
<col width="250">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Float estimation"}'>Float estimation</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Last filed"}'>Last filed</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Release date"}'>Release date</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Major shareholder"}'>Major shareholder</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":49907592}' data-sheets-formula="=43633432+6274160">49,907,592</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6999898678205009}' data-sheets-formula="=R[0]C[-1]/R2C6">70.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44327}'>11-May-21</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Executives"}'>Executives</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}'>0</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-formula="=R[0]C[-1]/R2C6">0.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</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":2823956}'>2,823,956</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.03960801368999951}' data-sheets-formula="=R[0]C[-1]/R2C6">3.96%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Non float"}'><strong>- Non-float</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":52731548}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>52,731,548</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7395978815105004}' data-sheets-formula="=R[0]C[-1]/R2C6"><strong>73.96%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional lockups - 6 months"}'>Institutional lockups - 6 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3020988}'>3,020,988</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0423715291815185}' data-sheets-formula="=R[0]C[-1]/R2C6">4.24%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44511}'>11-Nov-21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional lockups - 3 months"}'>Institutional lockups - 3 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2087672}'>2,087,672</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.02928110110647215}' data-sheets-formula="=R[0]C[-1]/R2C6">2.93%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44419}'>11-Aug-21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional lockups - 1 months"}'>Institutional lockups - 1 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2700264}'>2,700,264</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.037873144439436325}' data-sheets-formula="=R[0]C[-1]/R2C6">3.79%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":43993}'>11-Jun-20</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional lockups - 15 days"}'>Institutional lockups - 15 days</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35922}'>35,922</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0005038318825690495}' data-sheets-formula="=R[0]C[-1]/R2C6">0.05%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44342}'>26-May-21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Float, excl. inst lockups"}'><strong>Float, excl. inst lockups</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10721198}' data-sheets-formula="=R[-11]C[4]-R[-5]C[0]-sum(R[-4]C[0]:R[-1]C[0])"><strong>10,721,198</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1503725118795036}' data-sheets-formula="=R[0]C[-1]/R2C6"><strong>15.04%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Float, incl. inst lockups"}'><strong>Float, incl. inst lockups</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18566044}' data-sheets-formula="=R[-1]C[0]+sum(R[-5]C[0]:R[-2]C[0])"><strong>18,566,044</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2604021184894996}' data-sheets-formula="=R[0]C[-1]/R2C6"><strong>26.04%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; DART"}'>Source: KRX FIND &amp; DART</td></tr>
</tbody>
</table><h2>Passive flow impact</h2><p>SK IE Tech will likely enjoy an estimated passive inflow of ₩168.5B, requiring 0.45 days to buy. On the other hand, HDC Holdings requires 1.90 days to cover an estimated passive outflow of ₩20.5B.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 337.5px;" data-sheets-value='{"1":2,"2":"KOSPI 200 adds - passive inflow"}'>Passive flow impact</td>
<td style="text-align: right; width: 104.167px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 115px;" data-sheets-value='{"1":2,"2":"Estimated passive inflow"}'>Estimated passive flow</td>
<td style="text-align: right; width: 105px;" data-sheets-value='{"1":2,"2":"Days to buy"}'>Days to buy/cover</td>
</tr>
<tr>
<td style="width: 337.5px;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK IE Technology Co Ltd </td>
<td style="text-align: right; width: 104.167px;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-formula='="361610"'>361610</td>
<td style="text-align: right; width: 115px;" data-sheets-value='{"1":3,"3":168.45645052857597}' data-sheets-formula="=Guide!R32C2*R[0]C[4]"><strong>+₩168.5B</strong></td>
<td style="text-align: right; width: 105px;" data-sheets-value='{"1":3,"3":0.45175219778441594}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-2], "volumeavg")*average(index(googlefinance(R[0]C[-2], "price", today()-30, today()), 0, 2))/1000000000)'><strong>0.45x</strong></td>
</tr>
<tr>
<td style="width: 337.5px;">HDC Holdings Co Ltd</td>
<td style="text-align: right; width: 104.167px;">012630</td>
<td style="text-align: right; width: 115px;"><strong>-₩20.5B </strong></td>
<td style="text-align: right; width: 105px;"><strong>1.90x </strong></td>
</tr>
<tr><td colspan="4" style="width: 724.167px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide"}'>Source: KRX &amp; FnGuide</td></tr>
</tbody>
</table><h2>Short interest</h2><p>HDC Holdings' short interest sits at 0.96% of the float shares, taking only 0.34 days to cover. But the market seems to be waiting to short the shares as its loan balance to float shares has risen to 10.10%, translating into 3.53 times the average daily trade value.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<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":"KOSPI 200 deletes - short interest"}'>Short interest</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Short interest to float shares"}'>Short interest to float shares</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Days to cover"}'>Days to cover</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Loan balance to float shares"}'>Loan balance to float shares</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Loan balance to ADTV"}'>Loan balance to ADTV</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"30-day average daily trade value"}'>30-day average daily trade value</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"HDC Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>HDC Holdings Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"012630"}' data-sheets-formula='="012630"'>012630</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0096}'><strong>0.96%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"0.34x"}'><strong>0.34x</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.101}'><strong>10.10%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"3.53x"}'><strong>3.53x</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10.749360631578947}' data-sheets-formula='=(googlefinance(R[0]C[-5], "volumeavg")*average(index(googlefinance(R[0]C[-5], "price", today()-30, today()), 0, 2))/1000000000)'>₩10.7B</td>
</tr>
<tr><td colspan="7" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

The KRX confirmed that
If SK IE Technology satisfies the requirements for an exceptional addition of newly listed large-scale companies, it replaces HDC in the upcoming June rebalancing.
The KRX will post the replacement on the KRX index website on June 2.
SK IE Tech's fast entry into KOSPI 200 should be a done deal as its 10-day average daily market cap of ₩10.26T puts it at the 35th spot right behind Korean Air Lines.The 50th spot is CJ Cheiljedang, with a 10-day average daily market cap of ₩6.85T, requiring SK IE Tech to plunge 33.23% to fall below CJ Cheiljedang.Free float estimationSK IE Tech's non-float is 73.96%. The immediate float sits at 15.04%, with an 11.00% stake residing in the institutional lockups. The KRX includes institutional voluntary lockups in the float shares for the index calculation. So, 26.04% should be our index float for KOSPI 200.









Float estimation
Shares
% of SO
Last filed
Release date


Major shareholder
49,907,592
70.00%
11-May-21
-


Executives
0
0.00%
-
-


ESOP
2,823,956
3.96%
-
-


- Non-float
52,731,548
73.96%
-
-


Institutional lockups - 6 months
3,020,988
4.24%
-
11-Nov-21


Institutional lockups - 3 months
2,087,672
2.93%
-
11-Aug-21


Institutional lockups - 1 months
2,700,264
3.79%
-
11-Jun-20


Institutional lockups - 15 days
35,922
0.05%
-
26-May-21


Float, excl. inst lockups
10,721,198
15.04%
-
-


Float, incl. inst lockups
18,566,044
26.04%
-
-

Source: KRX FIND &amp; DART

Passive flow impactSK IE Tech will likely enjoy an estimated passive inflow of ₩168.5B, requiring 0.45 days to buy. On the other hand, HDC Holdings requires 1.90 days to cover an estimated passive outflow of ₩20.5B.








Passive flow impact
Ticker
Estimated passive flow
Days to buy/cover


SK IE Technology Co Ltd 
361610
+₩168.5B
0.45x


HDC Holdings Co Ltd
012630
-₩20.5B 
1.90x 

Source: KRX &amp; FnGuide

Short interestHDC Holdings' short interest sits at 0.96% of the float shares, taking only 0.34 days to cover. But the market seems to be waiting to short the shares as its loan balance to float shares has risen to 10.10%, translating into 3.53 times the average daily trade value.











Short interest
Ticker
Short interest to float shares
Days to cover
Loan balance to float shares
Loan balance to ADTV
30-day average daily trade value


HDC Holdings Co Ltd
012630
0.96%
0.34x
10.10%
3.53x
₩10.7B

Source: KRX



SK IE Tech In & HDC Out Offers A Clear-Cut Long/Short Setup

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>The KRX has announced the list of inclusions and exclusions to 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> today. The rebalance is effective after the close of trading on 10 June.</p><p>There are 5 inclusions and 7 exclusions at the June 2021 review. If <a href="https://www.smartkarma.com/entities/sk-ie-technology" target="_blank" data-smartkarma-citation="entities:29207:1" rel="noopener">SK IE Technology (361610 KS)</a> meets the criteria for index Fast Entry, then <a href="https://www.smartkarma.com/entities/hdc-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7699:1" rel="noopener">HDC Holdings (012630 KS)</a> will be deleted and the announcement will be made on 2 June.</p><p>So, there could be a total of 6 inclusions and 8 exclusions at the review with a one-way turnover of 0.77%.</p><p>The inclusions and exclusions are:</p><table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td colspan="2" style="text-align: center; width: 222pt;"><h3>Inclusions</h3></td>
<td colspan="2" style="text-align: center; width: 273pt;"><h3>Exclusions</h3></td>
</tr>
<tr>
<td><strong>Code</strong></td>
<td><strong>Name</strong></td>
<td><strong>Code</strong></td>
<td><strong>Name</strong></td>
</tr>
<tr>
<td>302440.KS</td>
<td>SK Bioscience Co Ltd</td>
<td>005180.KS</td>
<td>Binggrae Co Ltd</td>
</tr>
<tr>
<td>006040.KS</td>
<td>Dongwon Industries Co Ltd</td>
<td>005610.KS</td>
<td>SPC Samlip Co Ltd</td>
</tr>
<tr>
<td>298050.KS</td>
<td>Hyosung Advanced Materials Corp</td>
<td>006390.KS</td>
<td>Hanil Hyundai Cement Co Ltd</td>
</tr>
<tr>
<td>298020.KS</td>
<td>Hyosung TNC Corp</td>
<td>008350.KS</td>
<td>Namsun Aluminium Co Ltd</td>
</tr>
<tr>
<td><em><strong>361610.KS</strong></em></td>
<td><em><strong>SK IE Technology Co Ltd</strong></em></td>
<td>009410.KS</td>
<td>Taeyoung Engineering &amp; Construction Co Ltd</td>
</tr>
<tr>
<td>001440.KS</td>
<td>Taihan Electric Wire Co Ltd</td>
<td>018250.KS</td>
<td>Aekyung Industrial Co Ltd</td>
</tr>
<tr>
<td></td>
<td></td>
<td>145990.KS</td>
<td>Samyang Corp</td>
</tr>
<tr>
<td></td>
<td></td>
<td><em><strong>012630.KS</strong></em></td>
<td><em><strong>HDC Holdings Co Ltd</strong></em></td>
</tr>
</tbody>
</table><p>There are 12 trading days to implementation of the changes and there are a lot of deletions that have over 1 day of ADV to trade. The impact on the inclusions is smaller but there will be a lot of active funds looking to buy the stocks so they don't deviate too much from their benchmark.</p><p>With short selling limited to the constituents of 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>, shorting the inclusions will be tough while selling/shorting the deletions is a lot easier since they are current index constituents. The inclusions could outperform the deletions till a couple of days before implementation date, while there could be a high risk/reward reverse trade if the outperformance is significant.</p>

The KRX has announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is effective after the close of trading on 10 June.There are 5 inclusions and 7 exclusions at the June 2021 review. If SK IE Technology (361610 KS) meets the criteria for index Fast Entry, then HDC Holdings (012630 KS) will be deleted and the announcement will be made on 2 June.So, there could be a total of 6 inclusions and 8 exclusions at the review with a one-way turnover of 0.77%.The inclusions and exclusions are:








Inclusions
Exclusions


Code
Name
Code
Name


302440.KS
SK Bioscience Co Ltd
005180.KS
Binggrae Co Ltd


006040.KS
Dongwon Industries Co Ltd
005610.KS
SPC Samlip Co Ltd


298050.KS
Hyosung Advanced Materials Corp
006390.KS
Hanil Hyundai Cement Co Ltd


298020.KS
Hyosung TNC Corp
008350.KS
Namsun Aluminium Co Ltd


361610.KS
SK IE Technology Co Ltd
009410.KS
Taeyoung Engineering &amp; Construction Co Ltd


001440.KS
Taihan Electric Wire Co Ltd
018250.KS
Aekyung Industrial Co Ltd




145990.KS
Samyang Corp




012630.KS
HDC Holdings Co Ltd


There are 12 trading days to implementation of the changes and there are a lot of deletions that have over 1 day of ADV to trade. The impact on the inclusions is smaller but there will be a lot of active funds looking to buy the stocks so they don't deviate too much from their benchmark.With short selling limited to the constituents of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX), shorting the inclusions will be tough while selling/shorting the deletions is a lot easier since they are current index constituents. The inclusions could outperform the deletions till a couple of days before implementation date, while there could be a high risk/reward reverse trade if the outperformance is significant.

South Korea

SK IE Technology Co., Ltd operates as a material solution provider. The Company provides information material solutions, electronic materials solutions, and other products. SK IE Technology conducts businesses across worldwide.

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SK IE Technology (361610 KS)

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