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

SKT ADR Play on the 31st for MSCI Exclusion

MSCI Korea November SAIR: Three Adds & Four Deletes

MSCI Korea IR: Market Cap Cutoff, NOC, & Constituent Changes

SK Telecom Multi-Step Trading Scenario for Underlying & ADR Amid Zero Foreign Room

Trading Opportunity Coming on SK Telecom ADR Premium

SK Telecom: MSCI Special Deletion & Immediate Price Spike on Share Recall

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

<ul>
<li>The debating point is whether ADRs can be created from local underlying shares once the FOL is hit if the ADR issuance cap isn't entirely burned.</li>
<li>The answer is Yes. ADRs can still be created. That is one of the exceptions that the Korea FSS allows for exceeding the foreign ownership limit.</li>
<li>This is why we saw a hefty premium on KT ADR when it reached and stayed at zero foreign room since 2015 AND an increase in ADRs through DR creation.</li>
</ul>


The debating point is whether ADRs can be created from local underlying shares once the FOL is hit if the ADR issuance cap isn't entirely burned.
The answer is Yes. ADRs can still be created. That is one of the exceptions that the Korea FSS allows for exceeding the foreign ownership limit.
This is why we saw a hefty premium on KT ADR when it reached and stayed at zero foreign room since 2015 AND an increase in ADRs through DR creation.


SK Telecom: Clarifications over ADR Creation & Premium with Zero Foreign Room