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

Icure Pharm IPO Summary - Front Runner of Dementia Patch Development Race

Equity Capital Markets

Icure Pharm Inc (175250 KS) IPO price was set at ₩65,000. This is even higher than the upper end of the indicative price band, ₩44,000 - 55,000. The subscription competition rate reached a 642.1 to 1. A total of 963 local and overseas institutional investors have participated in this bookbuilding. Overseas institutions accounted for 28.56% in terms of participating institutions and 38.28% in terms of demand qty.
Bookbuilding overview

Total # of institutions
963


Total # of shares demanded
577,934,000


Subscription competition rate
642.1 to 1

Source: DART


Popularity by investor type
Local investment Firms
Local brokerage firms
Local pension, bank, insurance firms
Others
Foreign institutions


Institutions
132
300
165
91
275


Demand
56,522,000
106,836,000
123,114,000
70,204,000
221,258,000


% (by institution)
13.71%
31.15%
17.13%
9.45%
28.56%


% (by demand)
9.78%
18.49%
21.30%
12.15%
38.28%

Source: DART
It really seems true that this IPO is in very hot demand. Almost everyone wanted the shares at the upper end of the indicative price band. In fact, more than 90% of them wanted the shares above the upper end. Which type of investor was particularly aggressive? Well, it seems that really everyone, regardless of investor type, chose to be aggressive in this bookbuilding.

Price band
Institutions
%
Demand
%


Above upper end
875
90.86%
533,612,000
92.33%


75-100% of upper end
80
8.31%
42,506,000
7.35%


50-75% of upper end
4
0.42%
913,000
0.16%


25-50% of upper end
0
0.00%
0
0.00%


0-25% of upper end
0
0.00%
0
0.00%


Median
0
0.00%
0
0.00%


75-100% of median
0
0.00%
0
0.00%


50-75% of median
0
0.00%
0
0.00%


25-50% of median
0
0.00%
0
0.00%


0-25% of median
4
0.42%
903,000
0.16%


Lower end or below
0
0.00%
0
0.00%


Total
963
100.00%
577,934,000
100.00%

Source: DART



Local investment firms
Local brokerage firms
Local pension, bank, insurance firms


Price band
Institutions
Demand
Institutions
Demand
Institutions
Demand


Above upper end
119
   52,113,000 
266
   88,574,000 
148
    110,003,000 


75-100% of upper end
12
    4,407,000 
34
   18,262,000 
14
     12,200,000 


50-75% of upper end
1
          2,000 
0
0
3
         911,000 


25-50% of upper end
0
0
0
0
0
0


0-25% of upper end
0
0
0
0
0
0


Median
0
0
0
0
0
0


75-100% of median
0
0
0
0
0
0


50-75% of median
0
0
0
0
0
0


25-50% of median
0
0
0
0
0
0


0-25% of median
0
0
0
0
0
0


Lower end or below
0
0
0
0
0
0


Total
132
   56,522,000 
300
 106,836,000 
165
    123,114,000 

Source: DART



Others (local)
Foreign institutions
Total


Price band
Institutions
Demand
Institutions
Demand
Institutions
Demand


Above upper end
86
 67,077,000 
256
215,845,000
875
533,612,000


75-100% of upper end
5
   3,127,000 
15
4,510,000
80
42,506,000


50-75% of upper end
0
0
0
0
4
913,000


25-50% of upper end
0
0
0
0
0
0


0-25% of upper end
0
0
0
0
0
0


Median
0
0
0
0
0
0


75-100% of median 
0
0
0
0
0
0


50-75% of median
0
0
0
0
0
0


25-50% of median
0
0
0
0
0
0


0-25% of median
0
0
4
903,000
4
903,000


Lower end or below
0
0
0
0
0
0


Total
91
 70,204,000 
275
221,258,000
963
577,934,000

Source: DART
A total of 29,371,000 demands, representing only a 5.08% of the total demands in the bookbuilding, carry a lock-up pledge from 1 month to 6 months. This suggests that we will likely have a high level of price fluctuation after the IPO.
Lock-up obligation

6 month lock up
5,403,000


3 month lock up
9,361,000


1 month lock up
14,607,000


Total
29,371,000 


% of total demands in bookbuilding
5.08%

Source: DART
Retail offering on July 4-5 was also a success as subscription competition rate reached 331.42 to 1. 240,000 shares are to be offered to retail and a total 79,541,150 demands were submitted. 
Retail offering

Offering
240,000


Total # of shares demanded
79,541,150


Subscription deposits
₩2,585.1bil


Subscription competition rate
331.42 to 1

Source: DART
With an IPO price of ₩65,000, total capital to be raised in this IPO will amount to ₩78,000,000,000 (₩78.0bil). The stocks will be listed and traded on July 12.
IPO summary

Total number of share offerings
1,200,000 shares (100% new rights offering)


IPO price
₩65,000


Total amount to be raised (at ₩65,000)
₩78,000,000,000


Target valuation (at ₩57,000)
₩546.8bil


Bookrunners

Kiwoom Securities Co Ltd (039490 KS) 



Bourse
KOSDAQ


Listing
July 12

Source: DART


Icure Pharm (175250 KS): Post IPO Short Selling Opportunity Checkup