In today’s briefing:
- Thoughts on Capturing the 7% Doosan Swap Spread
- Peptron: Rights Offering of 120 Billion Won
Thoughts on Capturing the 7% Doosan Swap Spread
- Consider a two-phase strategy: go long on Bobcat spot and short futures until November 1. If Robotics’ price drops significantly, close the setup.
- If things go well, close the Bobcat futures short before November 1 and hold an unhedged Bobcat long until the listing date on November 25.
- Hold an unhedged long position during this trading suspension period because cancellation risk will be gone and Robotics may get stable inflows from MSCI inclusion.
Peptron: Rights Offering of 120 Billion Won
- On 16 August, Peptron (087010 KS) announced that it decided to increase capital through a rights offering worth about 120 billion won, involving 2.64 million shares (12.8% of outstanding shares).
- The expected rights offering price is 45,450 won, which is 22% lower than current price.
- We are negative on Peptron’s rights offering mainly due to much lower expected rights offering price, concerns about additional rights offering next 2-3 years, and continued lack of profitability.
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