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

Hana Pharm Co Ltd / Equity Capital Markets

<ul>
<li>A large portion of the <a href="https://www.smartkarma.com/entities/27441" target="_blank" data-smartkarma-citation="entities:27441:1">Hana Pharm Co Ltd (293480 KS)</a> IPO shares must have gone to highly speculative local money managers. </li>
<li>This IPO valuation is fragile as many of the institutional investors seem to be considering it as more of a generic drug maker. But to local retail investors, this IPO valuation may be seen attractive. This may lead to an immediate overshooting on the Oct 2 market debut day.</li>
<li>This can become a classic dumping event for local speculative money managers as most of them do not carry lock-up obligations in this IPO.</li>
<li>So, I'd take an extremely short-term approach as there will be a very high degree of price fluctuation. That is, I'd make a move right on the first trading day to reap overshooting gains if I got IPO shares, and I'd come back and enter later at a corrected price level if I want to look at it as long-term investment.</li>
</ul>


A large portion of the Hana Pharm Co Ltd (293480 KS) IPO shares must have gone to highly speculative local money managers. 
This IPO valuation is fragile as many of the institutional investors seem to be considering it as more of a generic drug maker. But to local retail investors, this IPO valuation may be seen attractive. This may lead to an immediate overshooting on the Oct 2 market debut day.
This can become a classic dumping event for local speculative money managers as most of them do not carry lock-up obligations in this IPO.
So, I'd take an extremely short-term approach as there will be a very high degree of price fluctuation. That is, I'd make a move right on the first trading day to reap overshooting gains if I got IPO shares, and I'd come back and enter later at a corrected price level if I want to look at it as long-term investment.


Hana Pharm Co Ltd

Hana Pharm Post IPO Short-Term Approach