In today’s briefing:
- Recruit Holdings Placement – Relatively Small US$520m Deal but Momentum Is Weak
- Seoul Guarantee Insurance IPO Trading – KDIC Stake Overhang Remains, Yield Might Help
- Samsung SDI Capital Raise: A Mega Deal Rarely Seen in the Local Market
Recruit Holdings Placement – Relatively Small US$520m Deal but Momentum Is Weak
- An undisclosed seller is looking to raise around US$520m via selling 0.5% of its stake in Recruit Holdings (6098 JP) .
- We have covered a number of placements in the stock over the past few years, most of which have ended up doing well.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Seoul Guarantee Insurance IPO Trading – KDIC Stake Overhang Remains, Yield Might Help
- Seoul Guarantee Insurance (031210 KS) raised around US$125m in its Korean IPO.
- Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
- We have looked at the firm’s past performance and discussed our thoughts on valuation. In this note, we talk about the trading dynamics.
Samsung SDI Capital Raise: A Mega Deal Rarely Seen in the Local Market
- The discount’s tight, but this near-2-trillion-won raise is a rare mega-deal in Korea, despite the issuance ratio below 20%.
- Samsung Electronics is in for 150 billion won, but plenty of supply remains. A smooth clearance? Unlikely. This could drive stock rights costs lower as price discovery unfolds.
- The optimal approach is to wait for a decline in rights prices and assess hedge costs through single stock futures (or TRS, if doable), given the shorting restrictions.
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