Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Equity Capital Markets

Aprogen Pharmaceuticals / Equity Capital Markets

<p>Today is the last day to be eligible to subscribe to the Aprogen Pharma rights offer. It offers a total of 220M shares for an estimated ₩308bil, which carries a massive capital increase rate of 91.04%. What's a bit unique in this offering is that the subscription rights are not tradable (non-renounceable). So, the banker (Shinhan) doesn't have any commitment. That is, the issuer will have to take whatever subscribed in the end. </p><p>June 1 is the ex-rights date. So, today is the last trading day before it. The 1st round pricing got fixed yesterday based on the 3D VWAP, which the banker will use to determine the ex-rights date base price. June 24 will be for the final offering price. Then, the subscription falls on July 2 with the payment on July 7. The new shares will get listed on July 21.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/136/626/original/1.png?1590685648" class="editor-image img-responsive" data-smartkarma-image-id="136626"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/136/627/original/2.png?1590685657" class="editor-image img-responsive" data-smartkarma-image-id="136627"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/136/628/original/3.png?1590685668" class="editor-image img-responsive" data-smartkarma-image-id="136628"></figure>

Today is the last day to be eligible to subscribe to the Aprogen Pharma rights offer. It offers a total of 220M shares for an estimated ₩308bil, which carries a massive capital increase rate of 91.04%. What's a bit unique in this offering is that the subscription rights are not tradable (non-renounceable). So, the banker (Shinhan) doesn't have any commitment. That is, the issuer will have to take whatever subscribed in the end. June 1 is the ex-rights date. So, today is the last trading day before it. The 1st round pricing got fixed yesterday based on the 3D VWAP, which the banker will use to determine the ex-rights date base price. June 24 will be for the final offering price. Then, the subscription falls on July 2 with the payment on July 7. The new shares will get listed on July 21.

Aprogen Pharma Rights Offer: Today Is the Last Chance Before Ex-Rights