FSS to Require Detailed Disclosure of Institutional Investors' Lock-up Status on IPO Shares Starting July

[Asia Economy Reporter Park Jihwan] The Financial Supervisory Service (FSS) announced on the 23rd that starting next month, the submission forms for securities registration statements (including amended registration statements) and securities issuance performance reports submitted to the FSS will be revised to disclose the mandatory holding commitment periods by categorizing institutional investors into six types.

Currently, for companies' initial public offering (IPO) subscription stocks, institutional investors who commit to holding the allocated shares for a certain period after listing to encourage mid- to long-term investment are given preferential allocation.

At present, the securities registration statements and issuance performance reports record the status of mandatory holding commitments collectively for all institutional investors. This has led to repeated criticism that the status of mandatory holding commitments by investor type cannot be identified.

To address this issue, from July 1, the FSS will require that securities registration statements and securities issuance performance reports submitted from that date categorize institutional investors into six types: △ Asset Management Companies (Collective) △ Investment Brokerage Firms △ Pension Funds, Proprietary Asset Management Companies, Banks, Insurance Companies △ Discretionary Investment Management Companies and Others △ Foreign Institutional Investors with Trading Records △ Foreign Institutional Investors without Trading Records, and provide detailed allocation information for each type in the same manner.

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