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 IE Tech's 5-day daily average market cap (May 11~17) is <span data-sheets-value='{"1":3,"3":10338.15084}' data-sheets-userformat='{"2":14529,"3":{"1":2,"2":"₩#,##0.0B","3":1},"9":2,"10":1,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=average(R[-5]C[0]:R[-1]C[0])*Terms!R[12]C[-9]/1000000000"><strong>₩10,338.2B</strong>, placing it at the <strong>35th spot</strong> among KOSPI's largest market cap ordinary shares. The 50th spot (CJ Cheiljedang) has a 5-day daily average market cap of ₩6,870.7B, 33.54% below where SK IE Tech sits. </span></p><div>
<p>SK IE Tech finally bounces back today with a 4.5% gain as I'm writing this post. We still have 10 more trading sessions to confirm SK IE Tech's fast entry into KOSPI 200. The last review day falls on May 31. <strong>But it seems to me that it is a done deal as a 33.54% gap is a pretty comfortable cushion.</strong> </p>
<p>The KRX will likely announce SK IET's entry on <strong>June 1</strong>, right after the 15-trading day review period. The inclusion should then occur on <strong>June 11</strong>.</p>
<div class="content-highlight"><em><strong>KOSPI 200 fast entry rule for an IPO stock</strong>: A newly listed stock in the <strong>top 50 ordinary shares</strong> in the KOSPI market by market capitalization is subject to index inclusion. The market capitalization refers to the <strong>average daily market capitalization for 15 trading days</strong> from the listing day.</em></div>
<hr>
<h2>Non-float and free float</h2>
<p>As filed at the <a href="http://find.krx.co.kr/p/Fids0207/" target="_blank" rel="noopener">KRX FIND</a>, SK Innovation and Premier Superior (the early investor) have a combined 71.00%. Adding the ESOP-owned 3.96% raises the total non-float shares to <strong>73.96%</strong>.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"Non-float"}'>Non-float</td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":2,"2":"Shareholding %"}'>Shareholding %</td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"Lockup period"}'>Lockup period</td>
<td style="text-align: right; width: 114.545px;">Last filed</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"SK Innovation"}'><strong>SK Innovation</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":43633432}' data-sheets-numberformat='[null,2,"#,##0",1]'>43,633,432</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.6119902618871055}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>61.20%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 114.545px;">2021. 5. 13</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"Premier Superior Ltd."}'><strong>Premier Superior Ltd.</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":6274160}' data-sheets-numberformat='[null,2,"#,##0",1]'>6,274,160</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.08799960593339534}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>8.80%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 114.545px;">2021. 5. 12</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"ESOP"}'><strong>ESOP</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":2823956}' data-sheets-numberformat='[null,2,"#,##0",1]'>2,823,956</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.03960801368999951}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>3.96%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"1 year"}'>1 year</td>
<td style="text-align: right; width: 114.545px;">-</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"Total"}'><strong>Total</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":52731548}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>52,731,548</strong></td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.7395978815105004}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>73.96%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right; width: 114.545px;"><strong>-</strong></td>
</tr>
<tr>
<td colspan="4" style="width: 588.182px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td>
<td style="width: 114.545px;"></td>
</tr>
</tbody>
</table>
<p>So, the eventual free float rate should be <strong>26.04%</strong>, of which <strong>11.00%</strong> are voluntary lockups from 15 days to 6 months by the IPO institutional shareholders.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Free float"}'>Free float</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":"Shareholding %"}'>Shareholding %</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Lockup period"}'>Lockup period</td>
</tr>
<tr>
<td colspan="1" rowspan="4" data-sheets-value='{"1":2,"2":"IPO voluntary lockup"}'><div>IPO voluntary lockup</div></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3020988}' data-sheets-numberformat='[null,2,"#,##0",1]'>3,020,988</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0423715291815185}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">4.24%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
</tr>
<tr>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2087672}' data-sheets-numberformat='[null,2,"#,##0",1]'>2,087,672</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.02928110110647215}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">2.93%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
</tr>
<tr>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2700264}' data-sheets-numberformat='[null,2,"#,##0",1]'>2,700,264</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.037873144439436325}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">3.79%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
</tr>
<tr>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35922}' data-sheets-numberformat='[null,2,"#,##0",1]'>35,922</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0005038318825690495}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">0.05%</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":"IPO institutional"}'><strong>IPO institutional</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4304198}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>4,304,198</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.06036947222565385}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>6.04%</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":"IPO retail"}'><strong>IPO retail</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6417000}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>6,417,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09000303965384975}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>9.00%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
<p>But SK IE Tech's free float rate for the KOSPI 200 index should be 26.04% as the KRX considers institutional voluntary lockups as free float shares instead of non-float. The KRX then rounds it up to the nearest 1%. So, it will be <strong>27.00</strong>%.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Free float schedule"}'>Free float schedule</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":"Shareholding %"}'>Shareholding %</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Date"}'>Release date</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"6 months"}'><strong>6 months</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18566044}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]"><strong>18,566,044</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2604021184894996}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>26.04%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44511}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'><strong>11. 11</strong></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":15545056}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]">15,545,056</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2180305893079811}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">21.80%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44419}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>8. 11</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":13457384}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]">13,457,384</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.18874948820150897}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">18.87%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44358}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>6. 11</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":10757120}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]">10,757,120</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.15087634376207265}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">15.09%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44342}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>5. 26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Immediate"}'>Immediate</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10721198}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=sum(R[-9]C[0]:R[-8]C[0])">10,721,198</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1503725118795036}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">15.04%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44327}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>5. 11</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
<h2>Passive inflow estimation</h2>
<p>The 5-day daily average float-adjusted market cap arrives at <strong><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">₩2,791.3B with a free float rate of 27.00%, giving an estimated weight of 0.22% in the KOSPI 200. </span></strong><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">We realistically estimate total passive funds mirroring KOSPI 200 at ₩80T, 0.22% of which spits out ₩178.7B flowing into SK IE Tech.</span></p>
<p><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">How many shares? ₩178.7B at the 5-day VWAP (volume-weighted average price) translates into <strong>1,117,477 shares</strong>, representing <strong>10.42%</strong> of the immediate free float shares. The current daily trade volume (TV) hovers around 1M shares. So, it is equivalent to one full-day TV.</span></p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"KOSPI 200 estimated passive inflow"}' data-sheets-numberformat='[null,2,"#,##0.0"]'>Passive inflow estimation for SK IE Tech</td></tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"5-day daily average market cap"}'>5-day daily average market cap</td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":10338.2}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩10,338.2B</td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Index free float"}'>Index free float</td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":0.2604}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>27.00%</td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"5-day daily average float-adj market cap"}'><strong>5-day daily average float-adj market cap</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":2692.06728}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"><strong><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">₩2,791.3B</span></strong></td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Weight in KOSPI 200"}'><strong>Estimated weight in KOSPI 200</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":0.0022}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>0.22%</strong></td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Estimated passive inflow"}'><strong>Estimated passive inflow</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":178.7}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩178.7B</strong></td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Passive inflow: amount of shares at the 5-day volume-weighted average price"}'>Passive inflow: the number of shares at the 5-day volume-weighted average price</td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":1117476.9164515114}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-1]C[0]*1000000000/R[-1]C[1]">1,117,477 shares</td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":" - % of the immediate float (26.04%)"}'><strong>- % of the immediate free float shares (15.04%)</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":0.10388253700353918}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-11]C[0]"><strong>10.42%</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>
<p></p>
</div>

SK IE Tech's 5-day daily average market cap (May 11~17) is ₩10,338.2B, placing it at the 35th spot among KOSPI's largest market cap ordinary shares. The 50th spot (CJ Cheiljedang) has a 5-day daily average market cap of ₩6,870.7B, 33.54% below where SK IE Tech sits. 
SK IE Tech finally bounces back today with a 4.5% gain as I'm writing this post. We still have 10 more trading sessions to confirm SK IE Tech's fast entry into KOSPI 200. The last review day falls on May 31. But it seems to me that it is a done deal as a 33.54% gap is a pretty comfortable cushion. 
The KRX will likely announce SK IET's entry on June 1, right after the 15-trading day review period. The inclusion should then occur on June 11.
KOSPI 200 fast entry rule for an IPO stock: A newly listed stock in the top 50 ordinary shares in the KOSPI market by market capitalization is subject to index inclusion. The market capitalization refers to the average daily market capitalization for 15 trading days from the listing day.

Non-float and free float
As filed at the KRX FIND, SK Innovation and Premier Superior (the early investor) have a combined 71.00%. Adding the ESOP-owned 3.96% raises the total non-float shares to 73.96%.









Non-float
Shares
Shareholding %
Lockup period
Last filed


SK Innovation
43,633,432
61.20%
6 months
2021. 5. 13


Premier Superior Ltd.
6,274,160
8.80%
6 months
2021. 5. 12


ESOP
2,823,956
3.96%
1 year
-


Total
52,731,548
73.96%
-
-


Source: DART




So, the eventual free float rate should be 26.04%, of which 11.00% are voluntary lockups from 15 days to 6 months by the IPO institutional shareholders.









Free float
Shares
Shareholding %
Lockup period


IPO voluntary lockup
3,020,988
4.24%
6 months


2,087,672
2.93%
3 months


2,700,264
3.79%
1 month


35,922
0.05%
15 days


IPO institutional
4,304,198
6.04%
-


IPO retail
6,417,000
9.00%
-

Source: DART


But SK IE Tech's free float rate for the KOSPI 200 index should be 26.04% as the KRX considers institutional voluntary lockups as free float shares instead of non-float. The KRX then rounds it up to the nearest 1%. So, it will be 27.00%.









Free float schedule
Shares
Shareholding %
Release date


6 months
18,566,044
26.04%
11. 11


3 months
15,545,056
21.80%
8. 11


1 month
13,457,384
18.87%
6. 11


15 days
10,757,120
15.09%
5. 26


Immediate
10,721,198
15.04%
5. 11

Source: DART


Passive inflow estimation
The 5-day daily average float-adjusted market cap arrives at ₩2,791.3B with a free float rate of 27.00%, giving an estimated weight of 0.22% in the KOSPI 200. We realistically estimate total passive funds mirroring KOSPI 200 at ₩80T, 0.22% of which spits out ₩178.7B flowing into SK IE Tech.
How many shares? ₩178.7B at the 5-day VWAP (volume-weighted average price) translates into 1,117,477 shares, representing 10.42% of the immediate free float shares. The current daily trade volume (TV) hovers around 1M shares. So, it is equivalent to one full-day TV.






Passive inflow estimation for SK IE Tech

5-day daily average market cap
₩10,338.2B


Index free float
27.00%


5-day daily average float-adj market cap
₩2,791.3B


Estimated weight in KOSPI 200
0.22%


Estimated passive inflow
₩178.7B


Passive inflow: the number of shares at the 5-day volume-weighted average price
1,117,477 shares


- % of the immediate free float shares (15.04%)
10.42%

Source: KRX





SK IE Tech KOSPI 200 Fast Entry: Estimated Passive Inflow & Ongoing Local Passive Buying

Equity Capital Markets

SK IE Technology   / Equity Capital Markets

<p>Tomorrow is SK IE Tech's market debut day.</p><p>The offering price of ₩105,000 gives a market cap of ₩7.48T. It is pretty much the same as the 50th largest market cap ordinary share: Hyundai Glovis having a market cap of ₩74.81T as of today.</p><p>The local market expects a "Double Crown" (a base price set at a +200% premium to the offering price and a further +30% premium to the base price for the closing price) for SK IE Tech on the IPO day. A likely 19.46T market cap will greet us right in the first trading session. Yes, it is comfortably above the threshold to make KOPSI 200 through a fast entry.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'>Market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Offering price"}'>Offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"IPO day base price at a 200% premium to the offering price"}'>IPO day base price at a 200% premium to the offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"IPO day close price at a 30% premium to the base price"}'>IPO day close price at a 30% premium to the base price</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering price"}'>Offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩105,000"}'>₩105,000</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩210,000"}'>₩210,000</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩273,000"}'>₩273,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'><strong>Market cap</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩7.48T"}'><strong>₩7.48T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩14.97T"}'><strong>₩14.97T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩19.46T"}'><strong>₩19.46T</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Here is the condition for KOSPI 200 fast entry of a new listing:</p><ul>
<li>A newly listed stock in the top 50 common shares in the KOSPI market by market capitalization is subject to index inclusion. The company can be selected before rebalancing considering sectoral balance and liquidity. The market capitalization refers to the average daily market capitalization for 15 trading days from the listing day.</li>
<li>When selected for index inclusion, the newly listed stock replaces a company with the smallest market capitalization at the most recent rebalancing.</li>
</ul>

Tomorrow is SK IE Tech's market debut day.The offering price of ₩105,000 gives a market cap of ₩7.48T. It is pretty much the same as the 50th largest market cap ordinary share: Hyundai Glovis having a market cap of ₩74.81T as of today.The local market expects a "Double Crown" (a base price set at a +200% premium to the offering price and a further +30% premium to the base price for the closing price) for SK IE Tech on the IPO day. A likely 19.46T market cap will greet us right in the first trading session. Yes, it is comfortably above the threshold to make KOPSI 200 through a fast entry.








Market cap
Offering price
IPO day base price at a 200% premium to the offering price
IPO day close price at a 30% premium to the base price


Offering price
₩105,000
₩210,000
₩273,000


Market cap
₩7.48T
₩14.97T
₩19.46T

Source: KRX

Here is the condition for KOSPI 200 fast entry of a new listing:
A newly listed stock in the top 50 common shares in the KOSPI market by market capitalization is subject to index inclusion. The company can be selected before rebalancing considering sectoral balance and liquidity. The market capitalization refers to the average daily market capitalization for 15 trading days from the listing day.
When selected for index inclusion, the newly listed stock replaces a company with the smallest market capitalization at the most recent rebalancing.


SK IE Tech KOSPI 200 Fast Entry Month Issue: June or September?

<p>SK IET's institutional lockup results are out. The final percentage of the locked shares allocated to the institutional investors is <strong>66.68%</strong> of the institutional allocation. </p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Institutional investors pledging lockups"}'>Institutional investors pledging lockups</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":3020988}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,020,988</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.25678847379829145}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">25.68%</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":2087672}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,087,672</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.17745522546644563}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">17.75%</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":2700264}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,700,264</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.22952645671299243}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">22.95%</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":36172}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>36,172</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0030746738067916183}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">0.31%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Total"}'><strong>- Total</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7845096}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=sum(R[-4]C[0]:R[-1]C[0])"><strong>7,845,096</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6668448297845211}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2"><strong>66.68%</strong></td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: SED"}'>Source: SED</td></tr>
</tbody>
</table><p>So, the immediate float shares come down to 10.72M shares, including the ones owned by the major shareholder, representing <strong>15.04%</strong> of the post-IPO total shares.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" style="text-align: left;" data-sheets-value='{"1":2,"2":"Immediate float shares"}'><div><div>Immediate float shares</div></div></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1 year"}'>1 year</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2823956}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-15]C[0]">2,823,956</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":52928580}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-18]C[0]+R[-17]C[0]+R[-9]C[0]">52,928,580</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":2087672}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-9]C[0]">2,087,672</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":2700264}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-9]C[0]">2,700,264</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":36172}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-9]C[0]">36,172</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Immediate float shares"}'><strong>Immediate float shares</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10720948}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-23]C[0]-sum(R[-5]C[0]:R[-1]C[0])"><strong>10,720,948</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of post-IPO total shares"}'><strong>- % of post-IPO total shares</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.15036900544972123}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-24]C[0]"><strong>15.04%</strong></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: SED"}'>Source: SED</td></tr>
</tbody>
</table><p>The ESOP spit out substantial forfeited shares, representing 2.04% of the post-IPO total shares. These forfeited shares went to the local retail subscribers, bringing up the final allocation to <strong>9.54%</strong>, while the institutional allocation remains at <strong>16.50%</strong>.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholder"}'>Shareholder</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":"Shareholding %"}'>Shareholding %</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Lockup period"}'>Lockup period</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Post-IPO shares outstanding"}'>Post-IPO total shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":71297592}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=Terms!R[8]C[0]">71,297,592</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]/R10C2">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Innovation"}'>SK Innovation</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":43633432}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>43,633,432</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6119902618871055}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R10C2">61.20%</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":"Premier Superior Ltd."}'>Premier Superior Ltd.</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6274160}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>6,274,160</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.08799960593339534}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R10C2">8.80%</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":2823956}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,823,956</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.03960801368999951}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R10C2">3.96%</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":"IPO"}'>IPO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18566044}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-4]C[0]-R[-3]C[0]-R[-2]C[0]-R[-1]C[0]">18,566,044</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2604021184894996}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R10C2">26.04%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"?"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Institutional"}'><strong>- Institutional</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11764500.000000002}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>11,764,500</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.16500557269872454}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R10C2"><strong>16.50%</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":" - Retail"}'><strong>- Retail</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6801543.999999998}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]"><strong>6,801,544</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09539654579077507}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R10C2"><strong>9.54%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

SK IET's institutional lockup results are out. The final percentage of the locked shares allocated to the institutional investors is 66.68% of the institutional allocation. 






Institutional investors pledging lockups

6 months
3,020,988
25.68%


3 months
2,087,672
17.75%


1 month
2,700,264
22.95%


15 days
36,172
0.31%


- Total
7,845,096
66.68%

Source: SED

So, the immediate float shares come down to 10.72M shares, including the ones owned by the major shareholder, representing 15.04% of the post-IPO total shares.





Immediate float shares

1 year
2,823,956


6 months
52,928,580


3 months
2,087,672


1 month
2,700,264


15 days
36,172


Immediate float shares
10,720,948


- % of post-IPO total shares
15.04%

Source: SED

The ESOP spit out substantial forfeited shares, representing 2.04% of the post-IPO total shares. These forfeited shares went to the local retail subscribers, bringing up the final allocation to 9.54%, while the institutional allocation remains at 16.50%.








Shareholder
Shares
Shareholding %
Lockup period


Post-IPO total shares
71,297,592
100.00%
-


SK Innovation
43,633,432
61.20%
6 months


Premier Superior Ltd.
6,274,160
8.80%
6 months


ESOP
2,823,956
3.96%
1 year


IPO
18,566,044
26.04%
-


- Institutional
11,764,500
16.50%
-


- Retail
6,801,544
9.54%
-

Source: DART



SK IE Technology: Immediate Float 15.04% & KOSPI 200 Index Float 21.80%

<p>This is a 21.4M offering, of which 11.8M (55%) go to institutional investors.</p><p>Again, the demand far exceeds what is allocated. 22.2B demands were put on the table by a total of 1,734 institutions, bumping up the subscription rate to 1,882.88 to 1. Of course, this is a new record, easily beating the previous record-holder Kakao Games (1,478.50 to 1).</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 197.5px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 121.667px;" data-sheets-value='{"1":2,"2":"IPO date"}'>IPO date</td>
<td style="text-align: right; width: 117.5px;" data-sheets-value='{"1":2,"2":"Offering size (₩B)"}'>Offering size (₩B)</td>
<td style="text-align: right; width: 125px;" data-sheets-value='{"1":2,"2":"Book-building"}'>Bookbuilding subscription rate</td>
</tr>
<tr>
<td style="width: 197.5px;">SK IE Technology</td>
<td style="text-align: right; width: 79.1667px;">361610</td>
<td style="text-align: right; width: 121.667px;">TBA</td>
<td style="text-align: right; width: 117.5px;">2,246.0</td>
<td style="text-align: right; width: 125px;">1,882.88 to 1</td>
</tr>
<tr>
<td style="width: 197.5px;" data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}'>SK Bioscience Co Ltd</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":302440}'>302440</td>
<td style="text-align: right; width: 121.667px;" data-sheets-value='{"1":2,"2":"2021.03.18"}'>2021.03.18</td>
<td style="text-align: right; width: 117.5px;" data-sheets-value='{"1":3,"3":1491.8}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>1,491.8</td>
<td style="text-align: right; width: 125px;" data-sheets-value='{"1":3,"3":1274.5}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>1,274.50 to 1</td>
</tr>
<tr>
<td style="width: 197.5px;" data-sheets-value='{"1":2,"2":"HYBE Co Ltd"}'>HYBE Co Ltd</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":352820}'>352820</td>
<td style="text-align: right; width: 121.667px;" data-sheets-value='{"1":2,"2":"2020.10.15"}'>2020.10.15</td>
<td style="text-align: right; width: 117.5px;" data-sheets-value='{"1":3,"3":962.6}'>962.6</td>
<td style="text-align: right; width: 125px;" data-sheets-value='{"1":3,"3":1117}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>1,117.00 to 1</td>
</tr>
<tr>
<td style="width: 197.5px;" data-sheets-value='{"1":2,"2":"Kakao Games Corp"}'>Kakao Games Corp</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":293490}'>293490</td>
<td style="text-align: right; width: 121.667px;" data-sheets-value='{"1":2,"2":"2020.09.10"}'>2020.09.10</td>
<td style="text-align: right; width: 117.5px;" data-sheets-value='{"1":3,"3":384}'>384.0</td>
<td style="text-align: right; width: 125px;" data-sheets-value='{"1":3,"3":1478.5}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>1,478.50 to 1</td>
</tr>
<tr>
<td style="width: 197.5px;" data-sheets-value='{"1":2,"2":"SK Biopharmaceuticals Co Ltd"}'>SK Biopharmaceuticals Co Ltd</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":326030}'>326030</td>
<td style="text-align: right; width: 121.667px;" data-sheets-value='{"1":2,"2":"2020.07.02"}'>2020.07.02</td>
<td style="text-align: right; width: 117.5px;" data-sheets-value='{"1":3,"3":959.3}'>959.3</td>
<td style="text-align: right; width: 125px;" data-sheets-value='{"1":3,"3":835}'>835.00 to 1</td>
</tr>
<tr><td colspan="5" style="width: 724.167px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>Interestingly, local hedge funds, supposedly short-term oriented, demanded much more than usual (43%). On the other hand, local public-offering funds, relatively longer-term compared with local hedge funds, demanded less than usual.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"By investor type"}'>By investor type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Institution"}'>Institution</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Demand"}'>Demand</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Local public-offering funds"}'>Local public-offering funds</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":251}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[39]C[0]">251</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1447520184544406}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C2">14.48%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3409256000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[39]C[0]">3,409,256,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1539085203049312}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C4">15.39%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Local brokerages and investment advisories"}'>Local brokerages and investment advisories</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":27}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[54]C[0]">27</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.015570934256055362}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C2">1.56%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":391425000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[54]C[0]">391,425,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.017670612755497885}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C4">1.77%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Local pension/bank/insurance"}'>Local pension/bank/insurance</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":276}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[69]C[0]">276</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.15916955017301038}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C2">15.92%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3843923000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[69]C[0]">3,843,923,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.17353126344753578}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C4">17.35%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Local others (hedge funds)"}'><strong>Local others (hedge funds)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":666}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[84]C[0]"><strong>666</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.38408304498269896}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C2"><strong>38.41%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9465091000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[84]C[0]"><strong>9,465,091,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4272950316319812}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C4"><strong>42.73%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Foreign (foreign funds)"}'>Foreign (foreign funds)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":276}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[99]C[0]">276</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.15916955017301038}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C2">15.92%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1635889309}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[99]C[0]">1,635,889,309</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.07385109916381943}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C4">7.39%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Foreign others (local hot money)"}'>Foreign others (local hot money)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":238}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[114]C[0]">238</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.13725490196078433}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C2">13.73%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3405600000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[114]C[0]">3,405,600,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1537434726962345}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R8C4">15.37%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1734}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=SUM(R[-6]C[0]:R[-1]C[0])">1,734</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=SUM(R[-6]C[0]:R[-1]C[0])">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":22151184309}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=SUM(R[-6]C[0]:R[-1]C[0])">22,151,184,309</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=SUM(R[-6]C[0]:R[-1]C[0])">100.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Subscription rate"}'>Subscription rate</td>
<td colspan="4" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":1882.8836167282925}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[-1]C[2]/(Terms!R[-1]C[0]*Terms!R[3]C[0])">1,882.88</td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>The "Unspecified" category usually indicates that they want the shares above the high end. With that in mind, 83.3% must have priced at the high end or above. The remaining 16.7% isn't that far either. All of the remaining 16.7% went for a 75-100% of the high end. </p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"By price"}'>By price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Institution"}' data-sheets-formula="=R1C2">Institution</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"%"}' data-sheets-formula="=R1C3">%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Demand"}' data-sheets-formula="=R1C4">Demand</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"%"}' data-sheets-formula="=R1C5">%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Above high end"}'>Above high end</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1089}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[16]C[0]+R[32]C[0]+R[48]C[0]+R[64]C[0]+R[80]C[0]+R[96]C[0]">1,089</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6280276816608996}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C2">62.80%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15998522000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[16]C[0]+R[32]C[0]+R[48]C[0]+R[64]C[0]+R[80]C[0]+R[96]C[0]">15,998,522,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7222422863187419}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C4">72.22%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"75-100% of high end"}'>75-100% of high end</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":290}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[16]C[0]+R[32]C[0]+R[48]C[0]+R[64]C[0]+R[80]C[0]+R[96]C[0]">290</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.16724336793540945}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C2">16.72%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3633268838}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[16]C[0]+R[32]C[0]+R[48]C[0]+R[64]C[0]+R[80]C[0]+R[96]C[0]">3,633,268,838</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.16402142600221187}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C4">16.40%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Unspecified"}'>Unspecified</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":355}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[16]C[0]+R[32]C[0]+R[48]C[0]+R[64]C[0]+R[80]C[0]+R[96]C[0]">355</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20472895040369088}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C2">20.47%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2519393471}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[16]C[0]+R[32]C[0]+R[48]C[0]+R[64]C[0]+R[80]C[0]+R[96]C[0]">2,519,393,471</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11373628767904628}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C4">11.37%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1734}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=SUM(R[-12]C[0]:R[-1]C[0])">1,734</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C2">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":22151184309}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=SUM(R[-12]C[0]:R[-1]C[0])">22,151,184,309</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R25C4">100.00%</td>
</tr>
<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

This is a 21.4M offering, of which 11.8M (55%) go to institutional investors.Again, the demand far exceeds what is allocated. 22.2B demands were put on the table by a total of 1,734 institutions, bumping up the subscription rate to 1,882.88 to 1. Of course, this is a new record, easily beating the previous record-holder Kakao Games (1,478.50 to 1).









Name
Ticker
IPO date
Offering size (₩B)
Bookbuilding subscription rate


SK IE Technology
361610
TBA
2,246.0
1,882.88 to 1


SK Bioscience Co Ltd
302440
2021.03.18
1,491.8
1,274.50 to 1


HYBE Co Ltd
352820
2020.10.15
962.6
1,117.00 to 1


Kakao Games Corp
293490
2020.09.10
384.0
1,478.50 to 1


SK Biopharmaceuticals Co Ltd
326030
2020.07.02
959.3
835.00 to 1

Source: DART

Interestingly, local hedge funds, supposedly short-term oriented, demanded much more than usual (43%). On the other hand, local public-offering funds, relatively longer-term compared with local hedge funds, demanded less than usual.









By investor type
Institution
%
Demand
%


Local public-offering funds
251
14.48%
3,409,256,000
15.39%


Local brokerages and investment advisories
27
1.56%
391,425,000
1.77%


Local pension/bank/insurance
276
15.92%
3,843,923,000
17.35%


Local others (hedge funds)
666
38.41%
9,465,091,000
42.73%


Foreign (foreign funds)
276
15.92%
1,635,889,309
7.39%


Foreign others (local hot money)
238
13.73%
3,405,600,000
15.37%


Total
1,734
100.00%
22,151,184,309
100.00%


Subscription rate
1,882.88

Source: DART

The "Unspecified" category usually indicates that they want the shares above the high end. With that in mind, 83.3% must have priced at the high end or above. The remaining 16.7% isn't that far either. All of the remaining 16.7% went for a 75-100% of the high end. 









By price
Institution
%
Demand
%


Above high end
1,089
62.80%
15,998,522,000
72.22%


75-100% of high end
290
16.72%
3,633,268,838
16.40%


Unspecified
355
20.47%
2,519,393,471
11.37%


Total
1,734
100.00%
22,151,184,309
100.00%

Source: DART



Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p>SK IET announced its IPO book building results today. The IPO price of SK IET has been determined at 105,000 won, which is at the high end of the IPO price range. There were 1,734 institutions that participated in this IPO survey and the demand was very strong at 1,883 to 1.</p><p>Our base case valuation of SK IET is 143,413 won, which represents a 37% upside from the high end of the IPO price range of 105,000 won. Our high end valuation range of the company is 201,864 won, which represents a 92% upside from 105,000 won IPO price.</p><p>Given the strong book building results, we believe that there is a high probability that the share price of SK IET reaches close to our high-end IPO valuation case (201,864 won per share or 14.4 trillion won market cap) in the first two days of trading post IPO. Nonetheless, we believe that over a 6-12 months view, we maintain our base case valuation of 143,413 won per share (10.2 trillion won market cap). In other words, we believe many institutional investors may be looking to take some partial profits in the first two days of trading at about 200,000 won level. </p>

SK IET announced its IPO book building results today. The IPO price of SK IET has been determined at 105,000 won, which is at the high end of the IPO price range. There were 1,734 institutions that participated in this IPO survey and the demand was very strong at 1,883 to 1.Our base case valuation of SK IET is 143,413 won, which represents a 37% upside from the high end of the IPO price range of 105,000 won. Our high end valuation range of the company is 201,864 won, which represents a 92% upside from 105,000 won IPO price.Given the strong book building results, we believe that there is a high probability that the share price of SK IET reaches close to our high-end IPO valuation case (201,864 won per share or 14.4 trillion won market cap) in the first two days of trading post IPO. Nonetheless, we believe that over a 6-12 months view, we maintain our base case valuation of 143,413 won per share (10.2 trillion won market cap). In other words, we believe many institutional investors may be looking to take some partial profits in the first two days of trading at about 200,000 won level. 

SK IET: Trading Strategy Post IPO Pricing

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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