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

SK Chemicals' Timely Spinoff Announcement Amid Metrica's Activist Move: What to Make of It

September Lockup Releases on KOSPI: Looking at Each Stock's Flow Situation

Metrica's Activist Move on SK Chemical Is a Well-Thought-Out Strategy

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Clepsydra Capital

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

Event-Driven

September 18th is the major lockup release date for SK Bioscience. Not only will all 68.43% of the shares owned by SK Chemicals, the major shareholder, be released, but also the largest amount (5.16% of the SO) among the lockup shares held by the IPO institutional shareholders will be released.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/852/original/1.png?1631670665" class="editor-image img-responsive" data-smartkarma-image-id="229852"></figure>SK Chemicals recently received a shareholder letter from Metrica. In other words, the possibility of selling some of the shares held by the largest shareholder cannot be completely ruled out. But again, all attention is on the 4 million shares held by the IPO institutional investors. These are presumed to be mostly local publicly-raised funds and pension funds. Based on the current share price, their return is 330%. So, at this point, we should conclude that the probability that they will realize profits rather than holding for a longer period of time is quite high.In both the 1-month lockup release on April 19 and the 3-month on June 18, the trading volume surged more than 3 times compared to the daily average. On the other hand, the stock price rose 6.44% on April 19th but fell 4.69% on June 18th. The reason that the stock price rose on April 19 was that it had fallen more than 20% since listing, so we may say that this 1-month lock-up release actually led to attracting bargain hunters.<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/857/original/Trade+volume+%26+daily+price+gain.png?1631672810" class="editor-image img-responsive" data-smartkarma-image-id="229857"></figure>But the important thing that we must note here is that both of the previous major lockup releases had led to a huge surge in the trade volume, suggesting that a significant number of the IPO institutional shareholders must have opted to dispose of their holdings.
And this time, there is no reason to believe things would be different, especially considering that even the return is incomparably higher than the previous two lockup releases.</section>

September 18th is the major lockup release date for SK Bioscience. Not only will all 68.43% of the shares owned by SK Chemicals, the major shareholder, be released, but also the largest amount (5.16% of the SO) among the lockup shares held by the IPO institutional shareholders will be released.SK Chemicals recently received a shareholder letter from Metrica. In other words, the possibility of selling some of the shares held by the largest shareholder cannot be completely ruled out. But again, all attention is on the 4 million shares held by the IPO institutional investors. These are presumed to be mostly local publicly-raised funds and pension funds. Based on the current share price, their return is 330%. So, at this point, we should conclude that the probability that they will realize profits rather than holding for a longer period of time is quite high.In both the 1-month lockup release on April 19 and the 3-month on June 18, the trading volume surged more than 3 times compared to the daily average. On the other hand, the stock price rose 6.44% on April 19th but fell 4.69% on June 18th. The reason that the stock price rose on April 19 was that it had fallen more than 20% since listing, so we may say that this 1-month lock-up release actually led to attracting bargain hunters.But the important thing that we must note here is that both of the previous major lockup releases had led to a huge surge in the trade volume, suggesting that a significant number of the IPO institutional shareholders must have opted to dispose of their holdings.
And this time, there is no reason to believe things would be different, especially considering that even the return is incomparably higher than the previous two lockup releases.

Shorting Entry Timing on SK Bioscience for Sep 23 Lockup Release, Considering Chuseok Holiday