Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Doosan Fuel Cell Big Block Deal Placement

Doosan Fuelcell: Block Deals Outcome on Rights Offer

Doosan Fuel Cell - The Expected Return Of The Remaining Big Block

Doosan Heavy Industries - A Massive Restructuring & Big Political Event Catalyst

Doosan Heavy Industries Rights Offer: Terms & Situation

Doosan Heavy Industries Is Taking Doosan E&C Private

Lotte Shopping - Biggest Ever Restructuring Measures in Its 50 Years of History

Event-Driven

<p>On Friday, September 4th, <a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a> announced a major rights offering worth 1.3 trillion won ($1.1 billion), representing 32% of its total market cap of 4.1 trillion won. The expected rights offering price of Doosan Heavy Industries is 10,700 won, which is <strong>34%</strong> lower than the current price of 16,100 won. The expected rights offering price of Doosan Fuel Cell is 34,200 won, which is <strong>42% lower</strong> than the current price of 59,300 won.</p>
<h3><strong>Korean New Deal Funds &amp; Big Market Discounts Drive Rights Offering </strong></h3>
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<p>The Korean New Deal Funds are likely to be one of the major drivers of both Doosan Heavy Industries and Doosan Fuel Cell. Although both companies are likely to be included in numerous New Deal Funds, Doosan Fuel Cell is viewed more as a pure-play. The market certainly seemed to favor Doosan Fuel Cell much better than Doosan Heavy Industries, reflecting the limit up position of the former stock.</p>
<p>Going forward, there are likely to be some interesting trading opportunities regarding the rights offerings of these two stocks, especially driven by the New Deal Funds and also due to the fact that the discounts on their expected rights offering prices and current prices are quite wide.</p>
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On Friday, September 4th, Doosan Heavy Industries &amp; Construction (034020 KS) announced a major rights offering worth 1.3 trillion won ($1.1 billion), representing 32% of its total market cap of 4.1 trillion won. The expected rights offering price of Doosan Heavy Industries is 10,700 won, which is 34% lower than the current price of 16,100 won. The expected rights offering price of Doosan Fuel Cell is 34,200 won, which is 42% lower than the current price of 59,300 won.
Korean New Deal Funds &amp; Big Market Discounts Drive Rights Offering 

The Korean New Deal Funds are likely to be one of the major drivers of both Doosan Heavy Industries and Doosan Fuel Cell. Although both companies are likely to be included in numerous New Deal Funds, Doosan Fuel Cell is viewed more as a pure-play. The market certainly seemed to favor Doosan Fuel Cell much better than Doosan Heavy Industries, reflecting the limit up position of the former stock.
Going forward, there are likely to be some interesting trading opportunities regarding the rights offerings of these two stocks, especially driven by the New Deal Funds and also due to the fact that the discounts on their expected rights offering prices and current prices are quite wide.


Doosan Heavy Industries & Doosan Fuel Cell (Rights Offerings of $1.1 Billion & $0.3 Billion)

Doosan Enerbility

Doosan Heavy Industries & Doosan Fuel Cell (Rights Offerings of $1.1 Billion & $0.3 Billion)