IPO Amount Decline Leads to 47% Sharp Drop in Stock Issuance Last Month

[Asia Economy Reporter Lee Jung-yoon] As the amount of initial public offerings (IPO) decreased, the scale of stock issuance last month sharply declined by 47%.

According to the direct financing performance of companies in August announced by the Financial Supervisory Service on the 29th, the issuance performance of stocks and corporate bonds totaled 20.8753 trillion KRW, down 2% from the previous month.

Last month's stock issuance scale was 372.3 billion KRW (12 cases), down 330.8 billion KRW (47%) from 703.1 billion KRW (17 cases) in the previous month. IPOs were 5 cases, 181.2 billion KRW, sharply down 7 cases and 363.9 billion KRW (66.8%) from the previous month. On the other hand, paid-in capital increases were 7 cases, 191.1 billion KRW, up 2 cases and 33.1 billion KRW (20.9%) from the previous month.

The scale of corporate bond issuance was 20.503 trillion KRW, down 92 billion KRW (0.4%) from 20.595 trillion KRW in the previous month. General corporate bonds amounted to 1.3355 trillion KRW, down 1.9425 trillion KRW (59.3%) from the previous month. As the amount of matured bonds decreased by 64.9%, refinancing issuance dropped by 81.1%, and operating funds also decreased by 67.4%. On the other hand, facility funds increased by 63.6%. High-grade bonds rated AA or higher accounted for 88.0% of the total and were mainly issued as medium- to long-term bonds.

Financial bonds increased by 6.3% from the previous month to 17.813 trillion KRW, while asset-backed securities (ABS) increased by 141.0% to 1.3545 trillion KRW.

As of the end of last month, the total outstanding corporate bonds amounted to 642.2842 trillion KRW, up 0.8% from the previous month, and the issuance amount of general corporate bonds continued net redemption as it fell short of the August redemption amount.

Last month's issuance performance of commercial papers (CP) and short-term bonds totaled 117.642 trillion KRW, down 11.2% from the previous month. CP issuance was 36.4494 trillion KRW, down 16.9%, and short-term bonds were issued at 81.1925 trillion KRW, down 8.4%.

At the end of last month, the outstanding balance of CP was 238.0339 trillion KRW, down 0.4% from the previous month, and the outstanding balance of short-term bonds was 72.8994 trillion KRW, down 1.1%.

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