Stock Issuance Volume in August Down 12%... Paid-in Capital Increase Plummets 52.8%

Financial Supervisory Service, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

Last month, the scale of stock issuance decreased by nearly 12% compared to the previous month. Initial Public Offerings (IPOs) increased, but the scale of paid-in capital increases showed a declining trend.

According to the Financial Supervisory Service on the 21st, the scale of stock issuance in August was 19 cases totaling 566.9 billion KRW, down 75.2 billion KRW (11.7%) from 19 cases totaling 642 billion KRW in the previous month. Last month, IPOs amounted to 14 cases totaling 384.5 billion KRW, an increase of 2 cases and 128.9 billion KRW (50.4%) compared to the previous month. On the other hand, paid-in capital increases were 5 cases totaling 182.4 billion KRW, a sharp decrease of 204 billion KRW (52.8%) from 7 cases totaling 386.4 billion KRW in the previous month.

The scale of corporate bond issuance was 19.2256 trillion KRW, an increase of 3.7974 trillion KRW (24.6%) compared to the previous month. Looking at the issuance performance, general corporate bonds were 9 cases totaling 490 billion KRW, down 2.214 trillion KRW (81.9%) from 31 cases totaling 2.704 trillion KRW in the previous month. In August, the proportion of refinancing funds increased while the proportion of operating and facility funds decreased, and only medium-term bonds were issued. Additionally, as AAA and AA grade bond issuances decreased, the proportion of non-investment grade bonds in August was 59.2%, exceeding the 40.8% proportion of investment-grade bonds.

Financial bond issuance performance was 318 cases totaling 17.9584 trillion KRW, an increase of 5.7674 trillion KRW (47.3%) compared to 233 cases totaling 12.191 trillion KRW in the previous month.

Asset-backed securities (ABS) amounted to 87 cases totaling 777.2 billion KRW, up 244 billion KRW (45.8%) from 33 cases totaling 533.2 billion KRW in the previous month.

As of the end of August, the total outstanding balance of corporate bonds was 628.4693 trillion KRW, an increase of 4.1566 trillion KRW (0.6%) compared to the previous month.

Last month, the issuance performance of commercial paper (CP) and short-term bonds was 95.2479 trillion KRW, an increase of 1.2433 trillion KRW (1.3%).

CP issuance performance totaled 32.1978 trillion KRW, a decrease of 2.9319 trillion KRW (8.3%), with an outstanding balance of 203.4405 trillion KRW. Short-term bond issuance last month totaled 63.0501 trillion KRW, an increase of 4.1752 trillion KRW (7.1%) compared to the previous month, with an outstanding balance of 63.1695 trillion KRW.

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