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 IE Tech MSCI Korea Index Fast Entry Situation Checkup

SK IE Tech: Why Selloff & How? Impacts on Index Inclusions

SK IE Tech KOSPI 200 Fast Entry: Estimated Passive Inflow & Ongoing Local Passive Buying

SK IE Tech KOSPI 200: Fast Entry Done, Passive Inflow at 7% of Float, & Entry Timing Is June

SK IE Technology: Immediate Float 15.04% & KOSPI 200 Index Float 21.80%

Clepsydra Capital

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

Equity Capital Markets

SK IE Technology   / Equity Capital Markets

<p>Tomorrow is SK IE Tech's market debut day.</p><p>The offering price of ₩105,000 gives a market cap of ₩7.48T. It is pretty much the same as the 50th largest market cap ordinary share: Hyundai Glovis having a market cap of ₩74.81T as of today.</p><p>The local market expects a "Double Crown" (a base price set at a +200% premium to the offering price and a further +30% premium to the base price for the closing price) for SK IE Tech on the IPO day. A likely 19.46T market cap will greet us right in the first trading session. Yes, it is comfortably above the threshold to make KOPSI 200 through a fast entry.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'>Market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Offering price"}'>Offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"IPO day base price at a 200% premium to the offering price"}'>IPO day base price at a 200% premium to the offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"IPO day close price at a 30% premium to the base price"}'>IPO day close price at a 30% premium to the base price</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering price"}'>Offering price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩105,000"}'>₩105,000</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩210,000"}'>₩210,000</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩273,000"}'>₩273,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'><strong>Market cap</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩7.48T"}'><strong>₩7.48T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩14.97T"}'><strong>₩14.97T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩19.46T"}'><strong>₩19.46T</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Here is the condition for KOSPI 200 fast entry of a new listing:</p><ul>
<li>A newly listed stock in the top 50 common shares in the KOSPI market by market capitalization is subject to index inclusion. The company can be selected before rebalancing considering sectoral balance and liquidity. The market capitalization refers to the average daily market capitalization for 15 trading days from the listing day.</li>
<li>When selected for index inclusion, the newly listed stock replaces a company with the smallest market capitalization at the most recent rebalancing.</li>
</ul>

Tomorrow is SK IE Tech's market debut day.The offering price of ₩105,000 gives a market cap of ₩7.48T. It is pretty much the same as the 50th largest market cap ordinary share: Hyundai Glovis having a market cap of ₩74.81T as of today.The local market expects a "Double Crown" (a base price set at a +200% premium to the offering price and a further +30% premium to the base price for the closing price) for SK IE Tech on the IPO day. A likely 19.46T market cap will greet us right in the first trading session. Yes, it is comfortably above the threshold to make KOPSI 200 through a fast entry.








Market cap
Offering price
IPO day base price at a 200% premium to the offering price
IPO day close price at a 30% premium to the base price


Offering price
₩105,000
₩210,000
₩273,000


Market cap
₩7.48T
₩14.97T
₩19.46T

Source: KRX

Here is the condition for KOSPI 200 fast entry of a new listing:
A newly listed stock in the top 50 common shares in the KOSPI market by market capitalization is subject to index inclusion. The company can be selected before rebalancing considering sectoral balance and liquidity. The market capitalization refers to the average daily market capitalization for 15 trading days from the listing day.
When selected for index inclusion, the newly listed stock replaces a company with the smallest market capitalization at the most recent rebalancing.


SK IE Tech KOSPI 200 Fast Entry Month Issue: June or September?