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

A Guide to Arb Trade in Rights Offer: Feat. HLB & Lotte Chemical

Lotte Chemical Offering: Schedule Clarifications & Trading Considerations

Lotte Chemical - Ready to Announce Rights Offering Close to 2 Trillion Won?

Clepsydra Capital

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

Event-Driven

<ul>
<li>Lotte Chemical offers 8.5M new shares, which is ₩1.1T based on the provisional price of ₩130,000. This is a capital increase rate of 24.8%.</li>
<li>This event has already been leaked in advance from early last week, so it isn't easy to expect a significant return from the short-selling approach immediately after the announcement.</li>
<li>Instead, we should pay attention to the KOSPI 200 passive inflow that occurs the day before the ex-date. It is estimated to be approximately 0.8x ADTV.</li>
</ul>


Lotte Chemical offers 8.5M new shares, which is ₩1.1T based on the provisional price of ₩130,000. This is a capital increase rate of 24.8%.
This event has already been leaked in advance from early last week, so it isn't easy to expect a significant return from the short-selling approach immediately after the announcement.
Instead, we should pay attention to the KOSPI 200 passive inflow that occurs the day before the ex-date. It is estimated to be approximately 0.8x ADTV.


Lotte Chemical Offering Terms & Trading Angle Targeting K200 Inflow on Ex-Date