In today’s briefing:
- Mandatory Offer Arrives in Korea: Detailed Rules & Trading Ramifications
- Bionote IPO Trading – Weakest Demand Even After Cutting Price and Size
- TIGER (WISE) Secondary Battery ETF Rebalancing in January: Names to Watch
Mandatory Offer Arrives in Korea: Detailed Rules & Trading Ramifications
- The target is those who purchase 25% or more of the shares of a listed company and become the largest shareholder with management rights.
- The minimum volume of a mandatory offer is [(50% of total shares + 1 share) – the management right purchase volume].
- We will be exposed to pro-rata risk, so it will be essential to figure out the nature and propensity of the shareholder composition to estimate the tendering rate in advance.
Bionote IPO Trading – Weakest Demand Even After Cutting Price and Size
- Bionote (377740 KS) raised US$72.2m in its Korean IPO. The IPO had consisted of both a primary and secondary selldown.
- Bionote is an integrated producer of diagnostics test products and biocontent products.
- In this note, we will talk about the demand for the deal and other trading dynamics.
TIGER (WISE) Secondary Battery ETF Rebalancing in January: Names to Watch
- The key to this rebalancing is the inclusion of WCP, which satisfies the requirements of minimum listing period and secondary battery sales amount.
- As a hedge for the LONG WCP position, we can use Soulbrain and Solus Advanced, whose passive outflow is relatively high among those of a similar size to WCP.
- Among large caps, we should pay attention to L&F, Posco Chemical, and Iljin Materials. However, we should be cautious about approaching them as an active trading target.
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