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

Hanwha Systems Rights Offer: Outright Trade on Subs Rights Ahead of Ex-Rights

Hanwha Systems ₩1.2T Rights Offer Summary & Dynamics

Hanwha Systems Subscription Rights Trading Begins May 13: Should Aim at the First Day

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<h2>Subscription</h2><p>Hanwha Systems will issue a total of 78,689,000 shares in this capital increase. It got a total of 73,626,614 subscriptions with an oversubscription of 10,950,101, making the final subscription rate 107.48% with no forfeited share for a public subscription.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Subscription"}'>Subscription</td></tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"Offering"}'>Offering</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":3,"3":78689000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>78,689,000 shares</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"Main subscription"}'>Subscription</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":3,"3":73626614}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=11736139+61890475">73,626,614 shares</td>
</tr>
<tr>
<td style="width: 352.5px;"> - ESOP</td>
<td style="text-align: right; width: 352.514px;">11,736,139 shares</td>
</tr>
<tr>
<td style="width: 352.5px;"> - Stockholders</td>
<td style="text-align: right; width: 352.514px;">61,890,475 shares</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"Over-subscription"}'>Over-subscription</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":3,"3":10950101}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>10,950,101 shares</td>
</tr>
<tr>
<td style="width: 352.5px;"><strong>- Allocation per over-subscription</strong></td>
<td style="text-align: right; width: 352.514px;"><strong>0.4623140918 share</strong></td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"- Final subscription rate"}'><strong>Final subscription rate</strong></td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":3,"3":1.0748225927385022}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-3]C[0]+R[-2]C[0])/R[-4]C[0]"><strong>107.48%</strong></td>
</tr>
<tr><td colspan="2" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Shares outstanding</h2><p>This is a massive offering at a capital increase rate of 71.39%. Accordingly, the total number of shares increased from 110,230,389 to 188,919,389. The stock dilution ratio for existing shareholders is 41.65%.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Shares outstanding"}'>Shares outstanding</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering"}'>Offering</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":78689000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-9]C[0]">78,689,000 shares</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase"}'><strong>Capital increase</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7138594058667433}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[2]C[0]"><strong>71.39%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Dilution"}'>Dilution</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.41652156730191414}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]/(R[-2]C[0]+R[1]C[0])">41.65%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shares outstanding before the offering"}'>Shares outstanding before the offering</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":110230389}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>110,230,389 shares</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shares outstanding after the offering"}'><strong>Shares outstanding after the offering</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":188919389}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-4]C[0]+R[-1]C[0]"><strong>188,919,389 shares</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Float adjustment</h2><p>The major shareholders, Hanwha Aerospace and H Solution, announced their participation in this capital increase through <a href="http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20210607000001" target="_blank" rel="noopener">a regulatory filing</a>. Their majority shareholding has declined slightly. But the free-float rate has also dropped slightly due to an increase in the shares owned by the ESOP.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"Float adjustment"}'>Float adjustment</td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":2,"2":"Before the offering"}'>Before the offering</td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":2,"2":"After the offering"}'>After the offering</td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"Hanwha Aerospace"}'><strong>Hanwha Aerospace</strong></td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":54000000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>54,000,000</strong></td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.48988305756591316}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2"><strong>48.99%</strong></td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":88289321}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[0]C[-2]+34289321"><strong>88,289,321</strong></td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.4673385906409003}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2"><strong>46.73%</strong></td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"H Solution"}'><strong>H Solution</strong></td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":14785550}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>14,785,550</strong></td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.13413315632951273}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2"><strong>13.41%</strong></td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":24174187}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[0]C[-2]+9388637"><strong>24,174,187</strong></td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.1279603280952809}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2"><strong>12.80%</strong></td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"Special affiliated persons"}'>Special affiliated persons</td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":37617}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=15601+10708+11308">37,617</td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.00034125798104549915}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">0.03%</td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":59482}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=24669+17881+16932">59,482</td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.00031485386605818424}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2">0.03%</td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"Executives"}'>Executives</td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":36514}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>36,514</td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.0003312516659992917}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">0.03%</td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":36514}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[0]C[-2]">36,514</td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.00019327820290589655}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2">0.02%</td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":2916933}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>2,916,933</td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.026462149199165032}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">2.65%</td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":14653072}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[0]C[-2]+11736139">14,653,072</td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.07756256294053544}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2">7.76%</td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"Treasury shares"}'>Treasury shares</td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":1926128}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,926,128</td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.017473656924135505}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2">1.75%</td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":1926128}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[0]C[-2]">1,926,128</td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.01019550195559864}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2">1.02%</td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"- Non-float"}'><strong>- Non-float</strong></td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":73702742}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=sum(R[-6]C[0]:R[-1]C[0])"><strong>73,702,742</strong></td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.6686245296657712}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2"><strong>66.86%</strong></td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":129138704}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=sum(R[-6]C[0]:R[-1]C[0])"><strong>129,138,704</strong></td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.6835651157012793}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2"><strong>68.36%</strong></td>
</tr>
<tr>
<td style="width: 217.273px;" data-sheets-value='{"1":2,"2":"Free-float"}'><strong>Free-float</strong></td>
<td style="text-align: right; width: 143.878px;" data-sheets-value='{"1":3,"3":36527647}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-12]C[0]-R[-1]C[0]"><strong>36,527,647</strong></td>
<td style="text-align: right; width: 88.5795px;" data-sheets-value='{"1":3,"3":0.3313754703342288}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R15C2"><strong>33.14%</strong></td>
<td style="text-align: right; width: 103.665px;" data-sheets-value='{"1":3,"3":59780685}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-11]C[-2]-R[-1]C[0]"><strong>59,780,685</strong></td>
<td style="text-align: right; width: 88.6364px;" data-sheets-value='{"1":3,"3":0.31643488429872063}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R16C2"><strong>31.64%</strong></td>
</tr>
<tr><td colspan="5" rowspan="1" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Remaining schedule</h2><p>The public subscription scheduled for June 4 is canceled. The payment date is June 9, and the first trading day is June 21. In other words, you can sell new shares from June 21, two trading days ahead of the listing day. Lastly, the listing date is June 23.</p><div><div><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Timetable"}'>Remaining schedule</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Public subscription"}'>Public subscription</td>
<td data-sheets-value='{"1":3,"3":44351}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>June 8 (Canceled)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td data-sheets-value='{"1":3,"3":44356}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>June 11</td>
</tr>
<tr>
<td><strong>First trading day</strong></td>
<td><strong>June 21</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing"}'><strong>Listing</strong></td>
<td data-sheets-value='{"1":3,"3":44369}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>June 23</strong></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table></div></div>

SubscriptionHanwha Systems will issue a total of 78,689,000 shares in this capital increase. It got a total of 73,626,614 subscriptions with an oversubscription of 10,950,101, making the final subscription rate 107.48% with no forfeited share for a public subscription.





Subscription

Offering
78,689,000 shares


Subscription
73,626,614 shares


 - ESOP
11,736,139 shares


 - Stockholders
61,890,475 shares


Over-subscription
10,950,101 shares


- Allocation per over-subscription
0.4623140918 share


Final subscription rate
107.48%

Source: DART

Shares outstandingThis is a massive offering at a capital increase rate of 71.39%. Accordingly, the total number of shares increased from 110,230,389 to 188,919,389. The stock dilution ratio for existing shareholders is 41.65%.





Shares outstanding

Offering
78,689,000 shares


Capital increase
71.39%


Dilution
41.65%


Shares outstanding before the offering
110,230,389 shares


Shares outstanding after the offering
188,919,389 shares

Source: DART

Float adjustmentThe major shareholders, Hanwha Aerospace and H Solution, announced their participation in this capital increase through a regulatory filing. Their majority shareholding has declined slightly. But the free-float rate has also dropped slightly due to an increase in the shares owned by the ESOP.









Float adjustment
Before the offering
%
After the offering
%


Hanwha Aerospace
54,000,000
48.99%
88,289,321
46.73%


H Solution
14,785,550
13.41%
24,174,187
12.80%


Special affiliated persons
37,617
0.03%
59,482
0.03%


Executives
36,514
0.03%
36,514
0.02%


ESOP
2,916,933
2.65%
14,653,072
7.76%


Treasury shares
1,926,128
1.75%
1,926,128
1.02%


- Non-float
73,702,742
66.86%
129,138,704
68.36%


Free-float
36,527,647
33.14%
59,780,685
31.64%

Source: DART

Remaining scheduleThe public subscription scheduled for June 4 is canceled. The payment date is June 9, and the first trading day is June 21. In other words, you can sell new shares from June 21, two trading days ahead of the listing day. Lastly, the listing date is June 23.





Remaining schedule

Public subscription
June 8 (Canceled)


Payment
June 11


First trading day
June 21


Listing
June 23

Source: DART



Hanwha Systems Offering: SO/Float Changes & Index Treatment

Hanwha Systems Co Ltd

Hanwha Systems Offering: SO/Float Changes & Index Treatment