In today’s briefing:
- How to Clean Up Korea’s Borrowing Balance Stats
- D’Alba Global IPO Preview
- DN Solutions IPO – Thoughts on Valuations – Probably Needs a Price Cut
- HLB Life Science (067630 KS): FDA Rejects Oncology Drug AGAIN; What Lies Ahead
How to Clean Up Korea’s Borrowing Balance Stats
- Local traders size up borrowing balances by comparing them to free-float shares, using KRX data for consistency. While not always exact, it’s the go-to reference for most traders.
- They usually watch for borrowing balances crossing 3% of float, triggering price action. With short selling back, many are now bumping that threshold to 4%.
- Borrowing balance structures differ between large and small/mid-caps. Traders use a 1 trillion KRW market cap threshold to split them, aligning with TMI indices for long/short setups.
D’Alba Global IPO Preview
- D’Alba Global is getting ready to complete its IPO in KOSPI in May 2025. IPO price range is from 54,500 won to 66,300 won per share.
- According to the bankers’ valuation, the expected market cap of the company will be 692 billion won to 842 billion won post IPO.
- D’Alba Global has one of the best growth rates for sales and operating profits among Korean cosmetic companies in the past four years.
DN Solutions IPO – Thoughts on Valuations – Probably Needs a Price Cut
- DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
- DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
- We have looked at its past performance in our earlier notes. In this note, we will talk about valuations.
HLB Life Science (067630 KS): FDA Rejects Oncology Drug AGAIN; What Lies Ahead
- HLB Life Science (067630 KS) shares lost ~20% since March 20 to trade near five-year lows after a group company, Elevar Therapeutics faced setback regarding a new cancer drug application.
- FDA has rejected Elevar’s new drug application of its lead proprietary drug candidate, rivoceranib in combination with camrelizumab as a therapy for advanced or metastatic hepatocellular carcinoma.
- This is the second time that the FDA declined to approve the drug combo. Elevar plans to promptly supplement the trial result and apply for reapproval to the FDA.
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