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

<h2>3.3M shares see lockup expire today</h2><p>The share price of SK Bioscience is falling due to the expiration of the third-batch voluntary lockups held by the IPO institutional shareholders. As of 11:50 a.m. today, the stock price of SK Bioscience is at ₩151,500, down 5.31% from the previous day. 3.3M shares newly hit the market today, representing 4.35% of the shares outstanding.</p><table class="table table-striped">
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<td data-sheets-value='{"1":2,"2":"SK Bioscience volunatry lockup expirations by the IPO institutional shareholders"}'>SK Bioscience voluntary lockup expirations by the IPO institutional shareholders</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty"}'>Qty</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3948100}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,948,100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.05160915032679739}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R3C5">5.16%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44457}' data-sheets-numberformat='{"1":5,"2":"yyyy-mm-dd","3":1}'>2021-09-18</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"3 months"}'><strong>3 months</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3331000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>3,331,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.04354248366013072}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R3C5"><strong>4.35%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44365}' data-sheets-numberformat='{"1":5,"2":"yyyy-mm-dd","3":1}'><strong>2021-06-18</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3118610}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,118,610</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.040766143790849675}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R3C5">4.08%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44304}' data-sheets-numberformat='{"1":5,"2":"yyyy-mm-dd","3":1}'>2021-04-18</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364380}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>364,380</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.00476313725490196}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-1]/R3C5">0.48%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44288}' data-sheets-numberformat='{"1":5,"2":"yyyy-mm-dd","3":1}'>2021-04-02</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Immediate"}'>Immediate</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8897510}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>8,897,510</td>
<td style="text-align: right;" 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]/R3C5">11.63%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44273}' data-sheets-numberformat='{"1":5,"2":"yyyy-mm-dd","3":1}'>2021-03-18</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; DART"}'>Source: KRX &amp; DART</td></tr>
</tbody>
</table><h2>Profit-taking selling, which should be well understandable</h2><p>As of now, today's daily trade volume already reaches nearly 1.5M shares, representing 4x ADTV. It certainly seems that many of these IPO shareholders with lockup expired today are selling for profit-taking. Well, this should be understandable given their nearly 130% return from the IPO price. Since the listing, SK Bioscience has never recovered its opening price at the time of listing. Nevertheless, even today's corrected share price has still more than doubled from the offering price.</p><div class="content-highlight">
<p><strong>Another important aspect is that most of these 3-month lockups belong to the local institutions through their IPO funds. However, they are in a situation where they need to prepare for mega IPOs such as Krafton, Kakao Bank, and LG Energy Solution very soon.</strong></p>
<p><strong>In other words, they had to do early profit-taking from the first day after the lockups were lifted because they needed money circulation for the upcoming IPOs.</strong></p>
</div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/213/804/original/Screen+Shot+2021-06-17+at+10.54.46+PM.png?1623984905" class="editor-image img-responsive" data-smartkarma-image-id="213804"></figure></section>

3.3M shares see lockup expire todayThe share price of SK Bioscience is falling due to the expiration of the third-batch voluntary lockups held by the IPO institutional shareholders. As of 11:50 a.m. today, the stock price of SK Bioscience is at ₩151,500, down 5.31% from the previous day. 3.3M shares newly hit the market today, representing 4.35% of the shares outstanding.








SK Bioscience voluntary lockup expirations by the IPO institutional shareholders
Qty
% of SO
Date


6 months
3,948,100
5.16%
2021-09-18


3 months
3,331,000
4.35%
2021-06-18


1 month
3,118,610
4.08%
2021-04-18


15 days
364,380
0.48%
2021-04-02


Immediate
8,897,510
11.63%
2021-03-18

Source: KRX &amp; DART

Profit-taking selling, which should be well understandableAs of now, today's daily trade volume already reaches nearly 1.5M shares, representing 4x ADTV. It certainly seems that many of these IPO shareholders with lockup expired today are selling for profit-taking. Well, this should be understandable given their nearly 130% return from the IPO price. Since the listing, SK Bioscience has never recovered its opening price at the time of listing. Nevertheless, even today's corrected share price has still more than doubled from the offering price.
Another important aspect is that most of these 3-month lockups belong to the local institutions through their IPO funds. However, they are in a situation where they need to prepare for mega IPOs such as Krafton, Kakao Bank, and LG Energy Solution very soon.
In other words, they had to do early profit-taking from the first day after the lockups were lifted because they needed money circulation for the upcoming IPOs.


What Happens to SK Bioscience with Lockup Release Today & Price Movement Prediction