In today’s briefing:
- Estimating Participation Rate for Hyundai HS Tender Offer, Currently at a 5% Spread
- HD Hyundai Marine Solution IPO – Peer Comparison – Not Particularly Exciting
- Tender Offer of 25% of Hyundai Home Shopping Shares by Hyundai GF Holdings
Estimating Participation Rate for Hyundai HS Tender Offer, Currently at a 5% Spread
- It is somewhat unusual that there is still a spread of over 5%. This likely reflects concerns about the relatively high intensity of allocation risk.
- Retail: 30%, Institutions: 16% of float shares (46%). Retailers may contribute 20%, institutions 10-15%. Total tender rate: 30-35%.
- In that case, it means that roughly 70% of our holdings could be tendered. And at this level, it seems reasonable enough to target the current spread of 5%.
HD Hyundai Marine Solution IPO – Peer Comparison – Not Particularly Exciting
- HD Hyundai Marine Solution (443060 KS) is looking to raise up to US$555m in its Korean IPO.
- HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship’s life cycle after the delivery of a new ship.
- In our previous note, we talked about the company’s historical performance. In this note, we talk about peer comparison.
Tender Offer of 25% of Hyundai Home Shopping Shares by Hyundai GF Holdings
- On 3 April, it was reported that Hyundai G.F. Holdings will be conducting a tender offer of 3 million shares of Hyundai Home Shopping (25% of outstanding shares).
- The tender offer price is 64,200 won. The main reason for this tender offer is to meet the regulatory requirement of a holding company by 2025.
- We are positive on the tender offer of a 25% stake in Hyundai Home Shopping by Hyundai G.F. Holdings.
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