Yuanta Securities Sells 500 Billion KRW of IPO Funds Since the Beginning of the Year

Continued Sales Over 700 Billion KRW in Second Half of Last Year and 500 Billion KRW Sales Popularity This Year
Ongoing Supply of IPO Investment Products Due to Upcoming Listings of Mega IPOs

[Asia Economy Reporter Lee Seon-ae] Yuanta Securities announced that on the 15th, amid the ongoing adjustment in the stock market, investors have shown a preference for products with relatively high stability, resulting in approximately 500 billion KRW in sales of public offering stock funds so far this year.

In a market environment where funds continuously flow into public offering subscriptions, Yuanta Securities proposed an investment strategy through public offering stock funds, which have advantages in securing shares. They actively provided carefully selected high-quality public offering stock funds, which proved effective. Last year, amid increasing demand for public offering stock investments, various public offering stock funds were sold, achieving sales of over 700 billion KRW in the second half alone. The expectation that good management performance will continue this year also contributed to this strong sales trend.

This year, starting with SK Bioscience scheduled to be listed in March, mega public offering IPOs such as SK IE Technology, Kakao Bank, Kakao Pay, Krafton, and LG Energy Solution are planned, raising market expectations for public offering stock funds higher than ever. However, for popular public offerings, the allocated shares are too few, making public offering stock funds, which offer relatively favorable conditions in terms of priority allocation benefits and allocation ratios compared to direct subscription, an alternative investment option for individuals.

Especially from this year, the subscription system has changed to allocate more than 50% of the public offering shares equally to investors who apply for the minimum number of subscription shares or more. As subscription enthusiasm heats up and competition rates rise, public offering stock funds are receiving increased attention.

Shin Nam-seok, Head of Retail Division at Yuanta Securities, said, “In 2020, large public offerings such as SK Biopharm, Kakao Games, and Big Hit Entertainment were listed, greatly increasing interest and investment demand in the public offering stock market. Public offering stock funds began to attract attention as attractive financial products, and in response, we have proactively selected and provided public offering investment products optimized for customer needs.”

Shin added, “In 2021, starting with SK Bioscience, which set a record for the largest subscription deposit ever, mega public offerings are scheduled to be listed one after another. Considering this market trend, public offering stock funds remain a good alternative and products that should be consistently monitored and included in portfolios.”

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