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

Clepsydra Capital

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

Event-Driven

<ul>
<li>It’s all about proration risk—65% is out there, but only 15% gets accepted. With just 20% of the theoretical max likely to be accepted, we could see a spread linger.</li>
<li>But the tender volume at ₩7,000 might be lighter than expected. 40% out of the 65% is with local retail, and 25% is mostly overseas funds that bought in 2021-2022.</li>
<li>At ₩7,000, most tenders will come from local retail buyers who net-grabbed 1.4M shares since Q4 of last year. This lowers proration risk, creating a potential mispricing and trade opportunity.</li>
</ul>


It’s all about proration risk—65% is out there, but only 15% gets accepted. With just 20% of the theoretical max likely to be accepted, we could see a spread linger.
But the tender volume at ₩7,000 might be lighter than expected. 40% out of the 65% is with local retail, and 25% is mostly overseas funds that bought in 2021-2022.
At ₩7,000, most tenders will come from local retail buyers who net-grabbed 1.4M shares since Q4 of last year. This lowers proration risk, creating a potential mispricing and trade opportunity.


Hyundai Ezwel Tender: Looking to Capitalize on Mispricing Driven by Inflated Proration Risk