SKIET, Record High Margin Deposit of 81 Trillion Won...Many Applicants Likely to Receive No Shares

On the morning of the 28th, when the general subscription for SK IE Technology (SKIET) public offering began, a related notice was installed at the Korea Investment & Securities branch in Yeouido, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] SK Innovation's battery separator company SK IE Technology (SKIET) has once again set a record for the largest subscription deposit by attracting over 80 trillion won in its public offering subscription.

According to the lead underwriter Mirae Asset Securities on the 29th, SKIET's public offering subscription for the general public held on the 28th and 29th gathered a deposit of 80.9017 trillion won.

This surpassed the previous records of Kakao Games (58.5 trillion won) and Big Hit (now HYBE, 58.4 trillion won) last year, as well as the all-time highest SK Bioscience (63.6 trillion won) subscription deposits.

SKIET collected 22 trillion won on the first day and an additional 58 trillion won on the second day. The subscription competition rate was calculated at 288.2 to 1. Although this was lower than SK Bioscience's competition rate (335.36 to 1), the higher offering price resulted in the largest subscription deposit record.

Mirae Asset Securities, which was allocated the largest subscription volume (46% allocation ratio), had a competition rate of 283.5 to 1. Korea Investment & Securities (32%) had 281.9 to 1, and SK Securities (14%) had 225.1 to 1. Additionally, Samsung Securities (3.6%) recorded 443.2 to 1, and NH Investment & Securities (3.6%) recorded 502.2 to 1.

This subscription applied an equal distribution method that evenly allocates about half of the shares to all subscribers. Therefore, the more securities firms you subscribe through, the more shares you can receive. However, since the number of subscription accounts currently exceeds the equal distribution volume allocated to each securities firm, shares are allocated by lottery among all subscribers.

A total of 4,744,557 people participated in the subscription, greatly exceeding the total equal distribution volume (2,673,750 shares). Except for SK Securities, subscribers at the other four lead underwriters faced situations where they could not receive even one share from the equal distribution portion.

At Mirae Asset Securities (1,429,352 subscriptions, equal distribution volume 1,241,384 shares), about 1 in 10 subscribers did not receive even one share, and at Korea Investment & Securities (1,293,832 subscriptions, equal distribution volume 859,420 shares), about 4 in 10 subscribers did not receive any shares.

Samsung Securities is expected to have 1 in 8 subscribers receive one share from the equal distribution portion, and NH Investment & Securities about 1 in 10. On the other hand, all subscribers at SK Securities (323,911 subscriptions, equal distribution volume 381,964 shares) are expected to receive at least one share. The actual allocation results remain to be seen. SKIET will be listed on the KOSPI market on the 11th of next month.