Last Month's Stock Issuance Volume Plummeted 44% Due to Decrease in Paid-in Capital Increase

[Asia Economy Reporter Lee Jung-yoon] The scale of stock issuance sharply declined last month as the number and amount of paid-in capital increases decreased.

According to the direct financing performance of companies in July announced by the Financial Supervisory Service on the 25th, the issuance performance of stocks and corporate bonds recorded a total of 21.2981 trillion won. This is an increase of 17.7% (3.2042 trillion won) compared to the previous month.

Last month's stock issuance scale was 703.1 billion won (17 cases), down 554.5 billion won (44.1%) from 1.2576 trillion won (18 cases) in the previous month. Initial Public Offerings (IPO) were 12 cases, 545.1 billion won, an increase of 1 case and 174.6 billion won (47.1%) compared to the previous month. However, in the case of paid-in capital increases, there were 5 cases amounting to 158 billion won, down 2 cases and 729.1 billion won (82.2%) from the previous month.

The scale of corporate bond issuance was 20.595 trillion won, an increase of 3.7587 trillion won (22.3%) compared to 16.8363 trillion won in the previous month. General corporate bonds amounted to 3.278 trillion won, up 1.5235 trillion won from 1.7545 trillion won in the previous month. As the amount of matured bonds increased by 56% compared to the previous month, refinancing issuance increased by 115.5%, and operating and facility funds also increased. High-quality bonds rated AA or higher accounted for 76.8% of the total and were mainly issued as medium- to long-term bonds.

Additionally, financial bonds amounted to 16.755 trillion won, an increase of 25.4% from the previous month, but asset-backed securities (ABS) decreased by 67.4% to 562 billion won.

As of the end of last month, the outstanding balance of corporate bonds increased by 0.7% from the previous month to 637.2557 trillion won, and the issuance amount of general corporate bonds was less than the redemption amount in July, continuing net redemption.

Last month's issuance performance of commercial paper (CP) and short-term bonds totaled 132.458 trillion won, a decrease of 2.8% compared to the previous month. CP issuance increased by 26.4% to 43.8662 trillion won, while short-term bonds issuance decreased by 12.8% to 88.5918 trillion won.

As of the end of last month, the outstanding balance of CP increased by 4.2% from the previous month to 238.9826 trillion won, while the outstanding balance of short-term bonds decreased by 9.0% to 73.7068 trillion won.

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