In today’s briefing:
- Trading Strategy of APR on the First Day of IPO
- KOSPI Size Indices – Potential Migrations as Focus Is on Price to Book
Trading Strategy of APR on the First Day of IPO
- In this insight, we discuss a trading strategy for APR (278470 KS) which starts trading on 27 February. APR is the most anticipated IPO in Korea so far in 2024.
- Our base case (6 months – 1 year) target price of APR is 370,809 won, which is 48% higher than the IPO price.
- We recommend investors to take some profits off the table (30%-50%) if the share price shoots higher by 100% to 200%+ from the IPO price on the first day.
KOSPI Size Indices – Potential Migrations as Focus Is on Price to Book
- The review period for the March rebalance of the KOSPI Size Indices started 1 December and will end 29 February. The changes will be implemented at the close 14 March.
- We see 3 migrations from MidCap to LargeCap, 4 new adds to LargeCap, 7 migrations from LargeCap to MidCap, and 11 migrations from SmallCap to MidCap.
- On average, stocks migrating from SmallCap to MidCap have the lowest price to book value and have historically outperformed stocks migrating between other categories.
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