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

ME2ZEN IPO: First HK-Based Company to Be Listed in Korea

Equity Capital Markets

First, here is an overview of ME2ZEN's second IPO attempt.It plans to offer 3.2M shares (52% primary and 48% secondary). The total offering represents 28.74% of the total shares at a 14.94% capital increase rate.Mirae is working as a sole banker with a firm commitment.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/145/575/original/11.png?1594599033" class="editor-image img-responsive" data-smartkarma-image-id="145575"></figure>The indicative price band is at ₩21,000~27,000, which gives an implied market cap of ₩289.9~372.7bil.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/145/569/original/5.png?1594596326" class="editor-image img-responsive" data-smartkarma-image-id="145569"></figure>July 30~31 will be for book-building, followed by the allotment on August 4. The following day will be a subscription. The payment date is August 7.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/145/567/original/2.png?1594596229" class="editor-image img-responsive" data-smartkarma-image-id="145567"></figure>Once again, the float will be tight on this one. A total of 72.48% shares will be in a lock-up for one month to three years. Of those, 65.26% is for more than six months.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/145/568/original/3.png?1594596246" class="editor-image img-responsive" data-smartkarma-image-id="145568"></figure>

First, here is an overview of ME2ZEN's second IPO attempt.It plans to offer 3.2M shares (52% primary and 48% secondary). The total offering represents 28.74% of the total shares at a 14.94% capital increase rate.Mirae is working as a sole banker with a firm commitment.The indicative price band is at ₩21,000~27,000, which gives an implied market cap of ₩289.9~372.7bil.July 30~31 will be for book-building, followed by the allotment on August 4. The following day will be a subscription. The payment date is August 7.Once again, the float will be tight on this one. A total of 72.48% shares will be in a lock-up for one month to three years. Of those, 65.26% is for more than six months.

ME2ZEN IPO: Absence of Local Pension Funds Vs. Market Friendly Pricing