In today’s briefing:
- Korea: Upcoming Changes to Dividend Rules & Implications
- Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management
- JEIO IPO: Book Building Results Analysis
- Com2uS Corp: The Most Likely Corporate Activist Target in Korea’s Game Industry
Korea: Upcoming Changes to Dividend Rules & Implications
- On 31 January, Korea’s Financial Services Commission (FSC) and the Ministry of Justice announced plans to improve rules regarding dividends to bring them in line with international standards.
- Companies will be able to decide the dividend amount prior to the record dates for quarterly dividends, while the ex-date of the final dividend will be post the AGM.
- This was one of the issues highlighted by MSCI for Korea’s upgrade from EM to DM. There are also implications for the KOSPI200 futures basis and futures rolls.
Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management
- NPS said it would add 50 KOSPI stocks to KOSPI 200 for direct management. However, the key was when this would be implemented and which ones would be included.
- SBS, one of Korea’s major networks, exclusively reported that NPS finalized the constituent stocks of the NPS-KR250 and started rebalancing trading on the 50 additional KOSPI stocks from January.
- Hence, tracing and identifying who these additional 50 KOSPI stocks are is becoming the hottest topic in Korea’s local market at this point.
JEIO IPO: Book Building Results Analysis
- Jeio (418550 KS) announced its IPO price of 13,000 won, which was at the high end of the recently revised down IPO price range of 10,000 won to 13,000 won.
- There were 1,174 institutional investors that participated in this IPO survey. The demand ratio was 352.6 to 1.
- Our base case valuation of JEIO is target price of 12,575 won per share, which is 3.3% lower than the IPO price 13,000 won.
Com2uS Corp: The Most Likely Corporate Activist Target in Korea’s Game Industry
- Com2us Corp (078340 KS) is the most likely corporate activist target in Korea’s game industry.
- Our base case valuation of Com2uS suggests a target price of 97,321 won which is 49% higher than current price.
- Finally, the company is expected to launch at least 3-4 promising new games this year. All in all, we have a positive view of Com2uS Corp.
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