In today’s briefing:
- LG Energy Solution (373220 KS) IPO: Index (Fast) Entry & Lock-Up Expiry Summary
- Softbank – Hmmmmm…
- Hang Seng TECH Index Rebalance Preview (March 2022): SenseTime Could Be Added with HUGE Impact
- KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing
- LG Chem: Still Cheap After LG Energy’s Big Debut
LG Energy Solution (373220 KS) IPO: Index (Fast) Entry & Lock-Up Expiry Summary
- LG Energy Solution (373220 KS) listed today and closed 68.3% above its IPO price to become the second largest stock in Korea with a full market cap of US$98.22bn.
- The stock will be added to a bunch of indices via Fast and Regular entry over the next few months. There will be liquidity squeezes on a few of them.
- LG Energy Solution (373220 KS) will become short sell eligible on 11 March after its inclusion in the Kospi 200 Index. That and lock-up expiry is something to watch for.
Softbank – Hmmmmm…
- Marcelo Claure is reportedly out, joining Katsunori Sago and Michael Ronen, Robert Townsend, Chad Fentress and Ziad Ojakli, Gary Ginsberg and Yuko Kawamoto.
- This is the highest profile resignation at Softbank since Nikesh Arora and continues the pattern of people reportedly in disputes with Rajeev Misra leaving the company.
- So does that 50% holdco discount offer any comfort here???
Hang Seng TECH Index Rebalance Preview (March 2022): SenseTime Could Be Added with HUGE Impact
- SenseTime Group (20 HK) listed just prior to review cutoff and will be eligible for inclusion in the Hang Seng Tech Index (HSTECH INDEX) at the March rebalance.
- We expect SenseTime Group (20 HK) to be added to the index and replace Autohome (2518 HK) at the close of trading on 4 March.
- The real float of SenseTime Group is much lower than what HSIL is likely to use. Expect a BIG squeeze if the stock is added at a higher float.
KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing
- The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. Also, the rebalancing trading takes place for three trading days instead of one trading day.
- This passive impact will be different from the previous rebalancing. LG Energy and SK Innovation will likely experience a significant passive outflow. Then, most small-cap constituents will receive an inflow.
- Among the top weighting stocks, Samsung SDI and SKIET deserve attention. Sangsin Energy, E&D, and TSI will face exclusion, while C&I, Sang-A Frontec, and Enchem will likely join the ETF.
LG Chem: Still Cheap After LG Energy’s Big Debut
- Korean EV battery unit play LG Energy Solution (373220 KS) briefly doubled on its debut yesterday before closing 65.8% higher.
- Following that gain, LG Energy is now the second-largest company in KOSPI after Samsung Electronics (005930 KS).
- LG Chem Ltd (051910 KS) has given back all its gains from earlier this month, and currently trades at ~60% discount to NAV.
Before it’s here, it’s on Smartkarma
