IPO and Paid-in Capital Increase Drive 59% Surge in Stock Issuance Volume... Corporate Bond Issuance Declines

Last month, the scale of stock issuance surged by nearly 59% compared to the previous month. Both the size of initial public offerings (IPO) and paid-in capital increases saw significant growth.

According to the "Direct Financing Performance of Corporations in July 2023" released by the Financial Supervisory Service on the 23rd, the scale of stock issuance last month was 19 cases totaling 640.9 billion KRW, an increase of 58.6% from the previous month.

Last month's IPOs amounted to 12 cases worth 255.6 billion KRW, increasing by 1 case and 94 billion KRW (58.2%) compared to the previous month. Paid-in capital increases were 7 cases totaling 385.4 billion KRW, up by 7 cases and 242.4 billion KRW (59.0%) during the same period.

The scale of corporate bond issuance was 15.4282 trillion KRW, a decrease of 34.4% from the previous month. For general corporate bonds, there were 31 cases worth 2.704 trillion KRW, down by 15 cases and 1.9125 trillion KRW (41.1%) compared to 46 cases and 4.6165 trillion KRW in the previous month. In July, the proportion of refinancing funds increased while the share of operating and facility funds decreased, and issuance focused on medium-term bonds continued to decline. Issuance was centered on high-grade bonds rated AA or higher.

Financial bonds were issued in 233 cases totaling approximately 12.191 trillion KRW, a decrease of 4.63 trillion KRW (27.5%) compared to 260 cases and 16.821 trillion KRW in the previous month. Although issuance by credit card companies, securities firms, and other financial institutions decreased, installment finance companies increased issuance by 412 billion KRW compared to the previous month. Asset-backed securities (ABS) amounted to 3 cases totaling 533.2 billion KRW, a sharp decline of 1.5413 trillion KRW (74.3%) compared to 127 cases and 2.0745 trillion KRW in the previous month.

As of the end of last month, the total outstanding balance of corporate bonds was 624.3127 trillion KRW, down by 6.4516 trillion KRW (0.1%) from 630.7643 trillion KRW in the previous month.

Additionally, the issuance performance of commercial paper (CP) and short-term bonds last month was 94.0047 trillion KRW, a decrease of 12.1961 trillion KRW (11.5%) compared to 106.2008 trillion KRW in the previous month. CP issuance totaled 35.1298 trillion KRW, increasing by 2.5% from the previous month. The outstanding balance rose by 2.0% to 203.6036 trillion KRW.

Short-term bonds were issued totaling approximately 58.8749 trillion KRW, down 18.1% from the previous month. The outstanding balance was 65.9907 trillion KRW, a decrease of 25.5% during the same period.

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