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

Jeju Air: A Rights Offering Size Representing 46% of Shares Outstanding

Korean Air - A 1 Trillion Won Rights Offering at 31% Discount

Korean Air Lines - Considering a Rights Offering of Nearly 1 Trillion Won

Equity Capital Markets

<p>Jeju Air also announced another well-anticipated rights offering. It offers 12.14M shares for ₩170bil. So, it carries a capital increase rate of 46.07%. 20% will go to the ESOP. Then, the stockholders will get the remaining 80%, which puts the per share allocation at 0.36955. KIS will be serving as a banker for a standby offering. That is, there is again no cancellation risk here.</p><p>This one is an accelerated offering. June 5 is for the 1st round pricing. Then, the ex-rights day falls on June 9. The subscription rights will be trading on June 30~July 6. The final pricing will be July 9. Then, the subscription will be July 14. The new shares will get listed on August 4. As for pricing, this one carries the usual 20% discount.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/134/998/original/1.png?1590098284" class="editor-image img-responsive" data-smartkarma-image-id="134998"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/134/999/original/2.png?1590098310" class="editor-image img-responsive" data-smartkarma-image-id="134999"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/135/000/original/3.png?1590098325" class="editor-image img-responsive" data-smartkarma-image-id="135000"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/135/001/original/5.png?1590098340" class="editor-image img-responsive" data-smartkarma-image-id="135001"></figure>

Jeju Air also announced another well-anticipated rights offering. It offers 12.14M shares for ₩170bil. So, it carries a capital increase rate of 46.07%. 20% will go to the ESOP. Then, the stockholders will get the remaining 80%, which puts the per share allocation at 0.36955. KIS will be serving as a banker for a standby offering. That is, there is again no cancellation risk here.This one is an accelerated offering. June 5 is for the 1st round pricing. Then, the ex-rights day falls on June 9. The subscription rights will be trading on June 30~July 6. The final pricing will be July 9. Then, the subscription will be July 14. The new shares will get listed on August 4. As for pricing, this one carries the usual 20% discount.

Jeju Air Rights Offer: Another Gene One-Like Trading Point?