'LG EnSol Listing Effect' January Stock Issuance Amount 10.5 Trillion Won... Annual Record Already Achieved

[Asia Economy Reporter Ji Yeon-jin] Last month, the amount of funds directly raised by companies in the stock market reached 10.5 trillion KRW. This is a scale comparable to the annual fundraising amount of 10.9164 trillion KRW in 2020, when the public offering investment boom began. LG Energy Solution, which rose to the second largest market capitalization immediately after listing, raised over 10 trillion KRW through its initial public offering (IPO) last month, achieving one-third of the record annual stock issuance amount of 30 trillion KRW in 2022 in just one month.

According to the "Direct Financing Performance of Companies in January" announced by the Financial Supervisory Service on the 24th, the stock issuance scale last month was 13 cases, totaling 10.5525 trillion KRW, a sharp increase of 615.0% (9.766 trillion KRW) compared to the previous month (20 cases, 1.4759 trillion KRW).

Through public offerings including LG Energy Solution, 10.3907 trillion KRW (9 cases) was raised, a 4222.3% increase from the previous month (240.4 billion KRW, 7 cases). The issuance amount increased significantly as LG Energy Solution raised 10.2 trillion KRW for its KOSPI listing. On KOSPI, only LG Energy Solution was listed, while on KOSDAQ, 8 cases were recorded including Auto& and K Auction, Adbiotech, Skonec Entertainment, Easytronics, Narae Nanotech, ASEMS, and DB Financial SPAC No.10.

Rights offerings in the KOSDAQ market amounted to 4 cases (161.8 billion KRW) including Nature & Environment, Eoflow, Orient Precision, and SL Bionics, down 86% from 13 cases and 1.2355 trillion KRW in the previous month.

Last month, the corporate bond issuance scale was 16.9815 trillion KRW, an increase of 96.8% (8.3515 trillion KRW) compared to the previous month (8.63 trillion KRW).

In particular, general corporate bonds were issued in 58 cases worth 5.693 trillion KRW, a sharp increase of 1890.6% compared to the previous month (4 cases, 286 billion KRW). Amid growing uncertainty in market interest rates ahead of global monetary tightening, companies concerned about further interest rate hikes expanded issuance mainly through general corporate bonds.

Financial bonds were issued in 197 cases totaling 10.9205 trillion KRW, up 54.3% (3.8415 trillion KRW) from the previous month (140 cases, 7.079 trillion KRW).

During the same period, the total issuance of commercial paper (CP) and short-term bonds was 141.8849 trillion KRW (CP 29.4074 trillion KRW, short-term bonds 112.4775 trillion KRW), a decrease of 33.2026 trillion KRW compared to the previous month.

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