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

CJ CGV - A Rights Offering Size Nearly 49% of Its Market Cap

Okja: The Fight Between Netflix Vs. CJ CGV

CJ CGV: Preparing for Blooming During Snowy Winter

Equity Capital Markets

<p>It is no surprise here. CJ CGV is one of the most harshly damaged businesses by COVID-19. So, it finally gives up and says it needs help. This rights offering is substantial for the size of its market cap. It aims to raise about ₩250bil with a 40% shareholding dilution. It is half of its current market value. Again, it is a standby offering backed by the banker (NH), so there is no cancellation risk.</p><p>June 12 is for the preliminary pricing, followed by June 16 as the ex-rights date. Subscription rights will be trading on July 3~9. Then, we have the final pricing on July 15. The subscription will be on July 20. Finally, new shares will get listed on August 7.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/132/617/original/1.png?1589154010" class="editor-image img-responsive" data-smartkarma-image-id="132617"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/132/618/original/2.png?1589154017" class="editor-image img-responsive" data-smartkarma-image-id="132618"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/132/619/original/3.png?1589154026" class="editor-image img-responsive" data-smartkarma-image-id="132619"></figure>

It is no surprise here. CJ CGV is one of the most harshly damaged businesses by COVID-19. So, it finally gives up and says it needs help. This rights offering is substantial for the size of its market cap. It aims to raise about ₩250bil with a 40% shareholding dilution. It is half of its current market value. Again, it is a standby offering backed by the banker (NH), so there is no cancellation risk.June 12 is for the preliminary pricing, followed by June 16 as the ex-rights date. Subscription rights will be trading on July 3~9. Then, we have the final pricing on July 15. The subscription will be on July 20. Finally, new shares will get listed on August 7.

CJ CGV Rights Offer: Well Anticipated, but Worth Playing It

CJ CGV Co Ltd

CJ CGV Rights Offer: Well Anticipated, but Worth Playing It