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

What Happened to SK Bioscience on Day 2 (Feat. Kyobo Securities)?

SK Bioscience: K200 Fast Entry, Lock-Up Expiry, Loan/Short Balance, & Exit Points

SK Bioscience K200 Entry: Potential Trades Reflecting SK Biopharm's Passive Inflow Pattern

Trading Strategy of SK Bioscience IPO Post Pricing

SK Bioscience IPO: Bookbuilding Results & KOSPI 200 Fast Entry

SK Bioscience IPO: Allocation & Lockup Schedule

SK Bioscience IPO: KOSPI200 Inclusion Certain; MSCI/FTSE Is a No Go; Watch SK Chem

Clepsydra Capital

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

Event-Driven

<p>SK Bio, as well expected, began the day with a 100% gain to the offering price and ended at a daily ceiling (+30%), making the total daily gain 160% from the offering price</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Market debut (March 18)"}'>Market debut (March 18)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Close"}'>Close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":169000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩169,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to opening"}'>- % to the opening price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-1]C[0]-R[0]C[1])/R[0]C[1]">30.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to IPO price"}'>- % to the IPO price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.6}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-2]C[0]-R[0]C[1])/R[0]C[1]">160.00%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Again unsurprisingly, it was all about local retail trading.</p><p>Local retail ended with a 176,243 net buy position and accounted for 77% of all trades.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Trade by investor type"}'>Trade by investor type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Retail"}'>Retail</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Inst."}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>Inst.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Foreign"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>Foreign</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Sell"}'>Sell</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":576646}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>576,646</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":102294}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>102,294</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":178783}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>178,783</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Buy"}'>Buy</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":752889}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>752,889</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20300}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>20,300</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":100850}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>100,850</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Net"}'>Net</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":176243}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-1]C[0]-R[-2]C[0]">176,243</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-81994}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-1]C[0]-R[-2]C[0]">-81,994</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-77933}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-1]C[0]-R[-2]C[0]">-77,933</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><div>
<p>Now, KOSPI 200 fast entry?</p>
<p>It now seems a done deal.</p>
<p>The current MC sits at ₩12.9T, the 29th place right behind Amorepacific.</p>
<p>It has to stay within the top 50 ordinary shares on KOSPI for the first 15 trading days.</p>
<p>Given the lockup release schedule, retail-driven trading will likely continue at least for the first 15 trading days, <strong>suggesting a less likelihood of price correction during the fast entry review period</strong>.</p>
<div><div><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"Float schedule"}'>Float schedule</td>
<td style="text-align: right; width: 220px;"><p>Float shares</p></td>
<td style="text-align: right; width: 193px;">% of SO</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"Immediate"}'>Immediate</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":8897510}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-7]C[0]+R[-6]C[0]+R[-5]C[0]">8,897,510</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.1163073202614379}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">11.63%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":9261890}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-9]C[0]">9,261,890</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.12107045751633987}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">12.11%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":12592890}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-12]C[0]">12,592,890</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.1646129411764706}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">16.46%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":15923890}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-13]C[0]">15,923,890</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.2081554248366013}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">20.82%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":72221990}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-15]C[0]+R[-18]C[0]">72,221,990</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":0.9440783006535948}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">94.41%</td>
</tr>
<tr>
<td style="width: 215px;" data-sheets-value='{"1":2,"2":"1 year"}'>1 year</td>
<td style="text-align: right; width: 220px;" data-sheets-value='{"1":3,"3":76712390}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-1]C[0]+R[-18]C[0]">76,712,390</td>
<td style="text-align: right; width: 193px;" data-sheets-value='{"1":3,"3":1.002776339869281}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R28C2">100.28%</td>
</tr>
<tr><td colspan="3" style="width: 628px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table></div></div>
</div>

SK Bio, as well expected, began the day with a 100% gain to the offering price and ended at a daily ceiling (+30%), making the total daily gain 160% from the offering price





Market debut (March 18)

Close
₩169,000


- % to the opening price
30.00%


- % to the IPO price
160.00%

Source: KRX

Again unsurprisingly, it was all about local retail trading.Local retail ended with a 176,243 net buy position and accounted for 77% of all trades.








Trade by investor type
Retail
Inst.
Foreign


Sell
576,646
102,294
178,783


Buy
752,889
20,300
100,850


Net
176,243
-81,994
-77,933

Source: KRX


Now, KOSPI 200 fast entry?
It now seems a done deal.
The current MC sits at ₩12.9T, the 29th place right behind Amorepacific.
It has to stay within the top 50 ordinary shares on KOSPI for the first 15 trading days.
Given the lockup release schedule, retail-driven trading will likely continue at least for the first 15 trading days, suggesting a less likelihood of price correction during the fast entry review period.








Float schedule
Float shares
% of SO


Immediate
8,897,510
11.63%


15 days
9,261,890
12.11%


1 month
12,592,890
16.46%


3 months
15,923,890
20.82%


6 months
72,221,990
94.41%


1 year
76,712,390
100.28%

Source: DART




SK Bioscience to KOSPI 200 Is a Done Deal & A Likely Deletion