In today’s briefing:
- MSCI Annual Market Classification Review: Korea Doesn’t Make It to the Watchlist
- Korea May Continue to Fail MSCI DM Inclusion Unless Allowing for K200 Options Listing on SGX
- Socar IPO Preview
MSCI Annual Market Classification Review: Korea Doesn’t Make It to the Watchlist
- MSCI had announced the results of the 2022 Global Market Accessibility Review earlier this month. Based on that, no changes were expected at the Market Classification Review.
- Earlier this morning, MSCI announced the results of the Market Classification Review and there are no changes for Asia.
- Korea has not been placed on the watchlist for an upgrade from Emerging to Developed Market. The earliest that Korea could be reclassified from EM to DM is now 2025.
Korea May Continue to Fail MSCI DM Inclusion Unless Allowing for K200 Options Listing on SGX
- The KRX and the MSCI have not agreed on the full right to use the KRX indexes’ price information. This should be the essential cause of Korea’s failed DM inclusion.
- The MSCI wants to list the KOSPI 200 Options on the SGX, which the MSCI sees as a prerequisite for taking the lead in the Korean passive market.
- Suppose the government takes a forward-looking approach to this issue. In that case, we may see the K200 Options SGX listing that has a bigger market impact before DM inclusion.
Socar IPO Preview
- Socar, the largest car sharing platform in Korea, is getting ready to complete its IPO in KOSPI. The IPO base case offering size is from $120 million to $159 million.
- The IPO price range is from 34,000 won to 45,000 won. The expected market cap of the company is from 1.2 trillion won to 1.6 trillion won.
- Book building for the institutional investors starts on 1 August. Mirae Asset Securities and Samsung Securities are the lead underwriters in this IPO.
Before it’s here, it’s on Smartkarma
