In today’s briefing:
- K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback
- Need a Game Plan to Tackle Korea Zinc’s Buyback Tender with a 20% Proration Risk
- Align Partners Goes Activist on Doosan Bobcat
K-Bank’s IPO Cancellation: What Led to This Move and Plan for a Comeback
- The institutional demand forecasts were much worse than expected, leading to the company’s blunt admission in the latest filing that the book-building flopped, prompting them to cancel the IPO.
- Bankers NH and KB suggested an offering price below 8,500 KRW, but pre-IPO backers like Bain Capital and MBK strongly opposed, unhappy with shrinking proceeds, pushing for cancellation.
- K-Bank plans to regroup and adjust the heavy 50% secondary share portion to retry the IPO in six months before their prelim review window expires.
Need a Game Plan to Tackle Korea Zinc’s Buyback Tender with a 20% Proration Risk
- NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.
- We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.
- MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura’s talks
Align Partners Goes Activist on Doosan Bobcat
- On 18 October, a local activist fund Align Partners Asset Management started its “corporate activism” on Doosan Bobcat Inc (241560 KS).
- Align Partners sent a shareholder proposal letter requesting a significant increase in the shareholder return rate, including dividends and selling off non-core assets.
- We believe that Align Partners’ corporate activism on Doosan Bobcat is likely to have a positive impact on Doosan Bobcat’s share price.
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