Last Month's Stock Issuance Hits 1 Trillion Won... IPOs Including SKIET Increase by 1152%
[Asia Economy Reporter Ji Yeon-jin] Last month, domestic companies directly raised more than 16 trillion won through stock and corporate bond issuance.
On the 28th, the Financial Supervisory Service announced that the issuance performance of stocks and corporate bonds in May was 16.3183 trillion won, a decrease of 8.593 trillion won compared to the previous month. Stock issuance increased by 457% from 250.4 billion won in the previous month to 1.151 trillion won, driven by initial public offerings (IPOs) including SK IE Technology (SKIET), considered the biggest in the first half of the year. Corporate bonds recorded 9.744 trillion won as demand declined due to preemptive fundraising in anticipation of rising interest rates.
In particular, IPOs in May amounted to 1.2685 trillion won, a 1152.2% increase from the previous month. There were 11 IPOs in total, including two on the KOSPI market such as SKIET and Jeju Beer, and nine on the KOSDAQ market including Jin System. Rights offerings in the same month totaled 132.9 billion won (2 cases), a 10.9% decrease from the previous month (1 case).
Corporate bond issuance amounted to 14.9169 trillion won, down 39.5% from the previous month. General corporate bond issuance was 2.514 trillion won (29 cases), down 71.7% from the previous month. Issuance focused mainly on medium- to long-term bonds for debt repayment, with a decrease in operating funds and an increase in facility funds in May.
Issuance of bonds rated AA or higher decreased by 82.3% from the previous month, reducing the proportion of high-quality bonds to 53.2%.
Financial bonds issuance totaled 10.975 trillion won (172 cases), and asset-backed securities (ABS) issuance was 1.0779 trillion won (37 cases), down 23.0% and 29.6% respectively from the previous month.
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In May, commercial paper (CP) and short-term bond issuance totaled 140.197 trillion won, an increase of 6.8% compared to the previous month. CP issuance was 33.4472 trillion won, up 5.4%, and short-term bonds issuance was 106.7497 trillion won, up 7.2%.
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