‘IPO’ Socar, General Subscription Competition Rate 14 to 1... Deposit Amount 183 Billion Won

Margin Deposit of 183 Billion KRW, 46,000 Subscription Applications
Scheduled to be Listed on KOSPI on the 22nd

Jaeuk Park, CEO of Socar

[Asia Economy Reporter Kwangho Lee] Socar, a comprehensive mobility platform company undergoing an initial public offering (IPO), raised a total subscription deposit of 183.4 billion KRW through its general subscription.

According to the investment banking (IB) industry on the 12th, Socar's overall subscription competition rate for the general subscription was about 14.4 to 1. By securities company, Mirae Asset Securities recorded 13.0 to 1, Samsung Securities 17.6 to 1, and Yuanta Securities 17.5 to 1. The deposit, which requires paying half of the subscription amount in advance, amounted to 183.4 billion KRW.

Although the competition rate slightly increased compared to about 3 to 1 on the first day of subscription, it is considered below expectations compared to the high attention it received as the first unicorn special listing.

The total number of subscription orders was about 46,000. Approximately 24,000 orders were placed through Mirae Asset Securities, about 21,000 through Samsung Securities, and about 1,100 through Yuanta Securities.

Investors who participated in the subscription through Mirae Asset Securities are expected to receive 13 to 14 shares by lottery from the equally allocated shares. Samsung Securities subscribers are expected to receive 6 to 7 shares, and Yuanta Securities subscribers 3 to 4 shares.

Following the institutional demand forecast, the general subscription also received a lukewarm market evaluation. Although the valuation was lowered below 1 trillion KRW after failing to attract enthusiasm in the demand forecast, general subscription investors, following institutions, showed a tepid response.

The public offering structure itself was market-friendly. This was because there was no sale of existing shares, and the amount available for circulation after listing was lowered to 14.51%. Nevertheless, interest faded due to the continued operating losses.

Socar recorded an operating profit of 1.4 billion KRW on a consolidated basis in the second quarter of this year. Although it escaped operating losses, this was due to the performance of subsidiaries such as Esca and Nine to One. On a separate basis, it posted an operating loss of 1 billion KRW. It still has not escaped the deficit trap.

Socar, established in 2011, is a vehicle-sharing company. It is the number one vehicle-sharing company in the domestic market, operating 19,000 shared vehicles across about 4,500 Socar zones nationwide. It also provides services such as ‘Illec,’ an electric bicycle sharing platform, and ‘Everyone’s Parking Lot,’ an online parking platform.

Socar plans to diversify its business areas by using the raised public offering funds to carry out mergers and acquisitions (M&A) and equity investments with companies within the mobility value chain. It aims to strengthen capabilities not only in car sharing but also in electric bicycles, shared parking platforms, KTX, and accommodation, aspiring to provide comprehensive mobility services covering everything from the start to the final stage of movement.

Socar’s scheduled KOSPI listing date is the 22nd of this month. The lead underwriter is Mirae Asset Securities, with Samsung Securities and Yuanta Securities as joint underwriters.

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