November Stock Issuance Down 22.4% MoM... Impact of Decline in Large IPOs

[Asia Economy Reporter Ji-hwan Park] Last month, the scale of stock issuance by domestic companies decreased by more than 22% compared to the previous month. This was largely due to a significant reduction in large initial public offerings (IPOs).

According to the "Direct Financing Performance of Companies in November" announced by the Financial Supervisory Service on the 22nd, the total amount of stock and corporate bond issuance by domestic companies in November was 19.451 trillion KRW, an increase of 30.03 billion KRW compared to October.

The stock issuance performance last month was 1.9287 trillion KRW, down 22.4% (556.5 billion KRW) from the previous month. Despite an increase in paid-in capital increases, the absence of large-scale IPOs, unlike the previous month, had a significant impact. Last month, large-scale IPOs such as KakaoPay (1.53 trillion KRW) were conducted. There were a total of 10 IPOs amounting to 270 billion KRW, a sharp decrease of 1.8219 trillion KRW (87.1%) compared to October (11 IPOs, 2.0919 trillion KRW). All 10 cases were listings on KOSDAQ with a fundraising amount of less than 100 billion KRW.

Paid-in capital increases amounted to 1.6587 trillion KRW (10 cases), a 321.7% increase compared to October (393.3 billion KRW, 6 cases). The scale of capital increases expanded mainly among KOSPI companies such as Samsung Heavy Industries (1.2825 trillion KRW). By market, there were 6 cases on KOSPI (Samsung Heavy Industries, Isu Petasys, Jin Air, Dongil Steel, Asendio, EID), 2 cases on KOSDAQ (Eco Plastic, Haesung Industry), and 2 others (Carecamp, Hanwha Hotels & Resorts).

The amount of corporate bond issuance in November was 17.5223 trillion KRW, a 5.1% increase from the previous month. General corporate bonds amounted to 2.06 trillion KRW (37 cases), down 35.7% from the previous month (41 cases). Issuance focused on medium- to long-term bonds continued, with refinancing and operating funds decreasing and the proportion of facility funds increasing this month. Financial bond issuance was 13.1011 trillion KRW (187 cases), up 8.5% from the previous month. Asset-backed securities (ABS) issuance was 2.3612 trillion KRW (75 cases), a 70.5% increase.

At the end of November, the total outstanding corporate bonds amounted to 625.8511 trillion KRW, an increase of 5.8281 trillion KRW (0.9%) compared to the previous month. The issuance of commercial paper (CP) and short-term bonds in November totaled 156.9078 trillion KRW, a 12.6% increase from the previous month. CP issuance was 38.96 trillion KRW, down 11.7% from the previous month, while short-term bond issuance increased by 23.8% to 117.9479 trillion KRW.

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