In today’s briefing:
- Initial Thoughts on the SK Ecoplant IPO – Impact on SK Inc
- Investigating HMM’s Latest Bond Conversion Situation for a Shorting Setup
Initial Thoughts on the SK Ecoplant IPO – Impact on SK Inc
- SK Ecoplant is getting ready to complete its IPO sometime in late 2023/1H 2024.
- Local media have mentioned that SK Ecoplant’s market cap could range from 5 trillion won to 10 trillion won.
- At the end of 2022, SK Inc’s 44.5% stake in SK Ecoplant had a book value of 545 billion won, which is much less the market value of SK Ecoplant.
Investigating HMM’s Latest Bond Conversion Situation for a Shorting Setup
- Those that the local market is particularly interested in are the 192nd convertible bonds (CB) held by KDB, along with the 193rd bonds with warrants (BW) owned by KOBC.
- These two bonds’ call option exercise date is September 25th. Upon conversion of these bonds, 200M new shares will be issued (41% of SO and a 30% dilution).
- The key is the trade-off between not disrupting the selling process and avoiding any breach of trust. The prevailing local sentiment suggests that KDB and KOBC will choose stock conversion.
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