[Fact Check] SK Bioscience, Who Are the Unlucky Subscription Applicants Not Receiving Even One Share?

Samsung Securities: Over 249,000 Applicants Lost in Lottery... Proportional Allocation Variable
Hana Financial Investment Lottery and Proportional Allocation Results: 57,000 "Did Not Receive Even One Share"
If Applied to All 6 Securities Firms, Minimum Allocation Is 5 Shares

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Is there an unlucky applicant who did not receive even one share in the general public subscription of SK Bioscience, which set the largest success record in the history of domestic initial public offerings (IPO)? To get straight to the point, it is 'arithmetically' possible.

According to the securities industry on the 11th, as of the previous day’s closing of SK Bioscience’s public subscription, subscription deposits worth 63.6198 trillion KRW poured in through 2,398,167 accounts across six underwriters. This surpassed the previous deposit records set by Kakao Games (58.5543 trillion KRW) and Big Hit (58.4237 trillion KRW). The equal allocation method distributes half of the shares allocated to each securities firm evenly among all applicants who submitted the minimum subscription quantity, while the remaining shares are allocated proportionally based on the subscription deposits.

For SK Bioscience, the minimum subscription quantity was 10 shares, and it was expected that depositing 325,000 KRW (with a deposit rate of 50%) would secure one share. However, among the six securities firms participating in this subscription, Samsung Securities and Hana Financial Investment received far more subscription applications than the number of shares available, resulting in allocations by lottery. Each of these two firms had 291,855 shares available, with half?145,928 shares?allocated equally among applicants. Samsung Securities received 395,290 accounts, and as a result of the lottery, 249,000 applicants did not receive even one share. However, since proportional allocation based on deposits has not yet been conducted, the number of applicants who receive no shares is expected to be lower. Hana Financial Investment reported that 57,000 accounts did not receive even one share after the lottery for equal allocation and proportional allocation. Hana Investment & Securities had 209,594 subscription applications, and among the 63,666 accounts that lost in the lottery, more than 6,000 accounts received at least one share through proportional allocation.

Moreover, applicants could apply through all six securities firms. The Financial Services Commission is preparing a system to prevent duplicate subscriptions as public subscriptions have become overheated, but SK Bioscience’s subscription took place before this system was completed. Since the government plans to establish the duplicate subscription prevention system within the first half of the year, SK Bioscience is considered the last public offering allowing duplicate subscriptions, which contributed to the record-breaking subscription deposits. Because of this, the securities industry estimates that many small investors strategically submitted the minimum subscription amount of 325,000 KRW to all six firms. In this case, at least five shares would be allocated.

According to NH Investment & Securities, the lead underwriter, all applicants will receive one share each through equal allocation, and some applicants will be allocated an additional share by lottery. Korea Investment & Securities and Mirae Asset Securities will allocate at least one share, and SK Securities will allocate two shares plus an additional share by lottery. A securities industry official said, "Among applicants who subscribed only through Samsung Securities or Hana Financial Investment, there is a possibility of not receiving even one share, but due to duplicate subscriptions and proportional allocation based on deposits, it is difficult to determine the exact number of applicants who receive no shares."

This content was produced with the assistance of AI translation services.