In today’s briefing:
- What Should We Do About the Futures Basis Spread Caused by Hanwha Ocean’s Rights Offering?
- Nice Holdings: Material Increase in Dividends and Share Cancellations
What Should We Do About the Futures Basis Spread Caused by Hanwha Ocean’s Rights Offering?
- The day the basis spread disappears is this Friday, the 24th of November. This mirrors a comparable pattern observed during Korean Air’s rights offering in 2020.
- If the spot price does not fall below the futures price of our entry until this Friday, we could potentially be in a profitable range.
- There has been a notable pattern where the spread continues to exist until just before the moment when new share selling becomes feasible.
Nice Holdings: Material Increase in Dividends and Share Cancellations
- On 21 November, Nice Holdings (034310 KS) announced new shareholder return policies that included material increase in dividends and share cancellations.
- First, Nice Holdings has decided to raise dividends by more than 10% every year for the next three years. Nice Holdings paid dividend per share of 410 won last year.
- Nice Holdings also announced that it will cancel more than 1% of total outstanding shares every year for the next three years.
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