In today’s briefing:
- Who Wants SM Entertainment More? Kim Bum-Soo (Kakao) Or Bang Si-Hyuk (Hybe)?
- EQD | KOSPI2 Index: Reloading on Upside Calls
- SoCar Lock-Up – US$242m Pre-IPO Lock-Up Expiry, Expect Scattered Selling
Who Wants SM Entertainment More? Kim Bum-Soo (Kakao) Or Bang Si-Hyuk (Hybe)?
- It has been reported that Kakao has hired local brokerage firms to discuss the details of another tender offer of SM Entertainment shares (at more than 130,000 won).
- We believe that this has been the key reason why SM Entertainment’s shares rose an additional 5% on 15 February.
- We believe that eventually Kakao Group will win the M&A fight for SM Entertainment and shares of SM could rise further in the coming weeks.
EQD | KOSPI2 Index: Reloading on Upside Calls
- KOSPI2 Index trading off the highs but supported by the 200-dma
- Implied vols are trading cheap offering a good entry point
- Options continue to be priced cheaply and we look at simple upside plays
SoCar Lock-Up – US$242m Pre-IPO Lock-Up Expiry, Expect Scattered Selling
- SOCAR (403550 KS) was listed on 22nd Aug 2022, where it raised US$78m in its Korea IPO. Its six-month lockup will expire on 21st Feb 2023.
- SoCar is a Korean car sharing business which aims to become an all-in-one mobility solutions provider beyond car sharing, with approximately 78% domestic market share in the car sharing space.
- Coming up for six-month lockup expiry are the firm’s pre-IPO investors, but the bulk of the shares unlocked will come from its strategic investors.
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