In today’s briefing:
- Spotlight on Trading Prospects Arising from ETFs as Short Selling Workarounds in Korea
- Ecoeye IPO Book Building Results Analysis
Spotlight on Trading Prospects Arising from ETFs as Short Selling Workarounds in Korea
- During the previous period of short-selling restrictions, a pattern was observed in which ETFs were utilized as a workaround for short-selling.
- We should anticipate more substantial price impacts this time. Of particular significance is the possibility of utilizing not only the MSCI Korea ETF but also sector ETFs for similar purposes.
- This calls for our attention to the possibility that this short-selling workaround could generate a significantly wider range of trading opportunities in the spot market compared to three years ago.
Ecoeye IPO Book Building Results Analysis
- Ecoeye announced that the IPO price has been determined at 34,700 won, which is at the high end of the IPO price range. The demand ratio was 75 to 1.
- An 81.1% of the IPO shares applied thought that the company’s value is more than 34,700 won per share. The IPO offering amount is 72 billion won.
- Our base case valuation of Ecoeye IPO is 45,421 won per share (31% higher than the IPO price). Given the solid upside, we have a positive view of Ecoeye IPO.
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