[IPO Underwriting Competition] 10 Trillion Capital Power Mirae Asset Securities, Narrowly Leading 1st Place①

The year 2021 marks the biggest boom in the initial public offering (IPO) market ever. This year, 62 companies have entered the stock market, with the total annual public offering amount exceeding 17 trillion won. Securities firms have earned fees worth several hundred billion won solely from underwriting, acquisition, and subscription processes of IPOs. The profits generated from the influx of funds into the public offering market are also enormous. Consequently, the competition among securities firms for underwriting has become fierce. With a series of IPOs scheduled after Chuseok, the rankings for IPO underwriting are also becoming clear.

[Asia Economy Reporter Lim Jeong-su] Mirae Asset Securities, which became a mega investment bank (IB) with over 10 trillion won in equity capital this year, is currently leading the IPO underwriting competition as of September. European securities firm Credit Suisse (CS) is closely trailing, and attention is focused on whether Mirae Asset can fend off challengers in the final ranking battle.

According to the investment banking (IB) industry on the 22nd, Mirae Asset has underwritten public offerings for a total of 17 companies worth 3.2 trillion won, currently holding the number one spot in IPO underwriting rankings. Its market share reaches 19%. It leads Credit Suisse, which is in second place with 2.8 trillion won, by about 400 billion won. Korea Investment & Securities, NH Investment & Securities, JP Morgan, and KB Securities follow behind.

Mirae Asset started successfully in early March by co-underwriting the blockbuster SK Bioscience. In the second quarter, by underwriting SK IE Technology, it overtook NH Investment & Securities, which had been number one until the first quarter, and rose to first place. In August, it listed Krafton, and in September, it consecutively listed major companies such as Iljin Hysolus and Hyundai Heavy Industries, securing a dominant lead in this year’s underwriting competition.

Additionally, it helped Hancom Lifecare, SoluM, and Aju Steel enter the KOSPI market. In the KOSDAQ market, companies such as Prestige Biologics, CNTOOS Seongjin, NCIS, ABION, VUNO, Rainbow Robotics, iQuest, NBT, and Samyoung S&C also passed through Mirae Asset’s hands.

By handling numerous listings in both the KOSPI and KOSDAQ markets, Mirae Asset ranks first in the industry with 17 underwriting cases. Since taking the top spot in IPO underwriting in 2018, it is expected to reclaim the throne it had lost to NH Investment & Securities and Korea Investment & Securities in 2019 and 2020.

However, there are variables. If heavyweight companies such as Kakao Pay and LG Energy Solution successfully list within the year, the underwriting performance of the securities firms handling these companies could surge dramatically. An IB industry insider predicted, "Depending on the outcome of mega IPOs in the fourth quarter, the IPO underwriting rankings could change somewhat."

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