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

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Clepsydra Capital

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

Event-Driven

This morning, we had another interesting piece of data, exclusively put out by a local news outlet named eDaily.eDaily got the local and foreign institutional breakdown of the SK IE Tech's post-IPO lockup releases.<a href="https://www.edaily.co.kr/news/read?newsId=01082406629054496&amp;mediaCodeNo=257" target="_blank" rel="noopener">Here is the link to the news report.</a>The regulatory filing contains only the aggregate data of the post-IPO institutional lockup release schedule. Even the institutional allocation data doesn't contain a breakdown between local and foreign institutions.Then, where did eDaily get the breakdown data? eDaily got it from one of the national assembly members (Yu Eui-dong, the People Power party), who made a special request to the local authority.<hr><h2>Breakdown</h2>12.15M shares went to institutional allocation, representing 17.04% of the outstanding shares. 4.3M shares had no lockup, meaning 7.84M shares (11% of the SO) carry lockups from 15 days to 6 months.<table class="table table-striped">
<colgroup>
<col width="250">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Float estimation"}'>Float estimation</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"Last filed"}'>Last filed</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"Release date"}'>Release date</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Major shareholder"}'>Major shareholder</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":49907592}' data-sheets-formula="=43633432+6274160">49,907,592</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.6999898678205009}' data-sheets-formula="=R[0]C[-1]/R2C5">70.00%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44327}'>11-May-21</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Executives"}'>Executives</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0}'>0</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0}' data-sheets-formula="=R[0]C[-1]/R2C5">0.00%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":2823956}'>2,823,956</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.03960801368999951}' data-sheets-formula="=R[0]C[-1]/R2C5">3.96%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":" - Non float"}'>- Non-float</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":52731548}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])">52,731,548</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.7395978815105004}' data-sheets-formula="=R[0]C[-1]/R2C5">73.96%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 6 months"}'>Institutional lockups - 6 months</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":3020988}'>3,020,988</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.0423715291815185}' data-sheets-formula="=R[0]C[-1]/R2C5">4.24%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44511}'>11-Nov-21</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 3 months"}'>Institutional lockups - 3 months</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":2087672}'>2,087,672</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.02928110110647215}' data-sheets-formula="=R[0]C[-1]/R2C5">2.93%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44419}'>11-Aug-21</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 1 month"}'>Institutional lockups - 1 month</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":2700264}'>2,700,264</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.037873144439436325}' data-sheets-formula="=R[0]C[-1]/R2C5">3.79%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":43993}'>11-Jun-20</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional lockups - 15 days"}'>Institutional lockups - 15 days</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":35922}'>35,922</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.0005038318825690495}' data-sheets-formula="=R[0]C[-1]/R2C5">0.05%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":44342}'>26-May-21</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Institutional - no lockup"}'>Institutional - no lockup</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":4304198}'>4,304,198</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.06036947222565385}' data-sheets-formula="=R[0]C[-1]/R2C5">6.04%</td>
<td style="text-align: right; width: 93.6364px;">-</td>
<td style="text-align: right; width: 93.6364px;">-</td>
</tr>
<tr>
<td style="width: 265.455px;"> - Total institutional allocation</td>
<td style="text-align: right; width: 93.6364px;">12,149,044</td>
<td style="text-align: right; width: 93.6364px;">17.04%</td>
<td style="text-align: right; width: 93.6364px;">-</td>
<td style="text-align: right; width: 93.6364px;">-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Float, excl. inst lockups"}'>Float, excl. inst lockups</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":10721198}' data-sheets-formula="=R[-12]C[3]-R[-6]C[0]-sum(R[-5]C[0]:R[-2]C[0])">10,721,198</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.1503725118795036}' data-sheets-formula="=R[0]C[-1]/R2C5">15.04%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;" data-sheets-value='{"1":2,"2":"Float, incl. inst lockups"}'>Float, incl. inst lockups</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":18566044}' data-sheets-formula="=R[-1]C[0]+sum(R[-6]C[0]:R[-3]C[0])">18,566,044</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":3,"3":0.2604021184894996}' data-sheets-formula="=R[0]C[-1]/R2C5">26.04%</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 93.6364px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 265.455px;"> - Total retail allocation</td>
<td style="text-align: right; width: 93.6364px;">6,417,000</td>
<td style="text-align: right; width: 93.6364px;">9.00%</td>
<td style="text-align: right; width: 93.6364px;">-</td>
<td style="text-align: right; width: 93.6364px;">-</td>
</tr>
<tr><td colspan="5" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; DART"}'>Source: KRX FIND &amp; DART</td></tr>
</tbody>
</table>Now, it is a bit shocking. Of the 17.04% institutional allocation, a whopping 9.05% went to foreign institutions. The remaining 7.99% found local institutions as their owners. It is not common to see local institutional allocation falls below 50% of the total institutional allocation.Most local institutions have a 3~6 month lockup, whereas more than half of the foreign institutions had no lockup. Nearly all the foreign institutions having lockups fall on a 1-month lockup, which expires on June 11, the same day as the KOSPI 200 application date.<table class="table table-striped">
<colgroup>
<col width="250">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Institutional voluntary lockups"}'>Institutional voluntary lockups</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":2,"2":"Local institutions, as a % of SO"}'>Local institutions, as a % of SO</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":2,"2":"Foreign institutions, as a % of SO"}'>Foreign institutions, as a % of SO</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.040516750942849435}' data-sheets-formula="=R[0]C[2]/R2C5">4.05%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.0018547746422366302}' data-sheets-formula="=R[0]C[2]/R2C5">0.19%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.02896254440021176}' data-sheets-formula="=R[0]C[2]/R2C5">2.90%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.000430572684804932}' data-sheets-formula="=R[0]C[2]/R2C5">0.04%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.007471720230905694}' data-sheets-formula="=R[0]C[2]/R2C5">0.75%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.030405055742379047}' data-sheets-formula="=R[0]C[2]/R2C5">3.04%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.00007702804361758446}' data-sheets-formula="=R[0]C[2]/R2C5">0.01%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.000430572684804932}' data-sheets-formula="=R[0]C[2]/R2C5">0.04%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"No lockup"}'>No lockup</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.0028765659442251484}' data-sheets-formula="=R[0]C[2]/R2C5">0.29%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.057373493519614724}' data-sheets-formula="=R[0]C[2]/R2C5">5.74%</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Total"}'> - Total, as a % of SO</td>
<td style="text-align: right; width: 196.364px;" data-sheets-value='{"1":3,"3":0.07990460956180961}' data-sheets-formula="=R[0]C[2]/R2C5">7.99%</td>
<td style="text-align: right; width: 222.727px;" data-sheets-value='{"1":3,"3":0.09049446927384026}' data-sheets-formula="=R[0]C[2]/R2C5">9.05%</td>
</tr>
<tr><td colspan="3" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; DART"}'>Source: KRX FIND &amp; DART</td></tr>
</tbody>
</table>The foreign institutions-owned immediately available shares amount to about 4M. The foreign net trade on May 11~28 is 2.8M shares. At least nearly three-fourths of these 4M shares must have flowed into the market right after the IPO.<section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/210/141/original/Daily+foreign+net+trade+%281%29.png?1622436583" class="editor-image img-responsive" data-smartkarma-image-id="210141"></figure></section></section>

This morning, we had another interesting piece of data, exclusively put out by a local news outlet named eDaily.eDaily got the local and foreign institutional breakdown of the SK IE Tech's post-IPO lockup releases.Here is the link to the news report.The regulatory filing contains only the aggregate data of the post-IPO institutional lockup release schedule. Even the institutional allocation data doesn't contain a breakdown between local and foreign institutions.Then, where did eDaily get the breakdown data? eDaily got it from one of the national assembly members (Yu Eui-dong, the People Power party), who made a special request to the local authority.Breakdown12.15M shares went to institutional allocation, representing 17.04% of the outstanding shares. 4.3M shares had no lockup, meaning 7.84M shares (11% of the SO) carry lockups from 15 days to 6 months.









Float estimation
Shares
% of SO
Last filed
Release date


Major shareholder
49,907,592
70.00%
11-May-21
-


Executives
0
0.00%
-
-


ESOP
2,823,956
3.96%
-
-


- Non-float
52,731,548
73.96%
-
-


Institutional lockups - 6 months
3,020,988
4.24%
-
11-Nov-21


Institutional lockups - 3 months
2,087,672
2.93%
-
11-Aug-21


Institutional lockups - 1 month
2,700,264
3.79%
-
11-Jun-20


Institutional lockups - 15 days
35,922
0.05%
-
26-May-21


Institutional - no lockup
4,304,198
6.04%
-
-


 - Total institutional allocation
12,149,044
17.04%
-
-


Float, excl. inst lockups
10,721,198
15.04%
-
-


Float, incl. inst lockups
18,566,044
26.04%
-
-


 - Total retail allocation
6,417,000
9.00%
-
-

Source: KRX FIND &amp; DART

Now, it is a bit shocking. Of the 17.04% institutional allocation, a whopping 9.05% went to foreign institutions. The remaining 7.99% found local institutions as their owners. It is not common to see local institutional allocation falls below 50% of the total institutional allocation.Most local institutions have a 3~6 month lockup, whereas more than half of the foreign institutions had no lockup. Nearly all the foreign institutions having lockups fall on a 1-month lockup, which expires on June 11, the same day as the KOSPI 200 application date.







Institutional voluntary lockups
Local institutions, as a % of SO
Foreign institutions, as a % of SO


6 months
4.05%
0.19%


3 months
2.90%
0.04%


1 month
0.75%
3.04%


15 days
0.01%
0.04%


No lockup
0.29%
5.74%


 - Total, as a % of SO
7.99%
9.05%

Source: KRX FIND &amp; DART

The foreign institutions-owned immediately available shares amount to about 4M. The foreign net trade on May 11~28 is 2.8M shares. At least nearly three-fourths of these 4M shares must have flowed into the market right after the IPO.

SK IE Tech Post-IPO Lockup Releases: Local & Foreign Institutional Breakdown

SK IE Technology

SK IE Tech Post-IPO Lockup Releases: Local & Foreign Institutional Breakdown