Customer Deposits Surge by 9 Trillion Won and Drop by 8 Trillion Won in a Day... IPO 'Super Week' Volatility

66 Trillion → 75 Trillion → 67 Trillion Fluctuations in One Day
Active Fund Movement Amid IPO Subscriptions of Major Players Like KakaoBank and Krafton

On the afternoon of the 2nd, the first day of Krafton's public offering general subscription, investors are receiving consultations at a securities firm counter in Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Investor deposit funds, which serve as standby capital in the stock market, are fluctuating sharply. As the general subscriptions for major IPOs such as KakaoBank and Krafton proceed one after another, amounts in the trillions of won are rapidly moving.

According to the Korea Financial Investment Association on the 3rd, as of the 30th of last month, investor deposit funds recorded 67.2561 trillion won. After reaching 75.1675 trillion won the previous day, the second highest ever, 7.9114 trillion won was withdrawn in just one day. On the 28th, the day before, the funds increased by 9.1549 trillion won in one day from 66.0127 trillion won. In just a few days, funds amounting to about 9 trillion won flowed in and out.

It is interpreted that the investor deposit funds fluctuated significantly due to the ongoing general subscriptions of major IPOs. On the 26th of last month, investor deposit funds increased by about 5 trillion won compared to the previous day, reaching 71.665 trillion won. That day was the first day of KakaoBank's general subscription. It appears that investors moved large amounts of funds into their stock accounts to participate. The sharp decrease of about 8.5 trillion won to 63.071 trillion won on the 27th, when the subscription closed, supports this. It means that a large amount of investor deposit funds participated in KakaoBank's subscription.

The rapid increase of investor deposit funds to the 75 trillion won level again on the 29th seems to be due to partial refunds of KakaoBank subscription deposits. The deposits for shares not allocated were released at once on the 29th of last month and remained as customer deposits. In addition, with the waiting funds for Krafton's subscription joining in, investor deposit funds soared by more than 9 trillion won in one day.

The rapidly inflowed funds quickly flowed out again. This is because the general subscription for HK Innoen, formerly CJ Healthcare, continued until the 30th. Deposits for HK Innoen shares not allocated will be refunded on the 3rd. Since the 3rd is also the closing day for Krafton's general subscription, which is considered this year's largest IPO, another capital concentration phenomenon is expected. Although only 1.8017 trillion won in deposits were gathered on the first day of the general subscription on the 2nd, it is expected that funds including the refunded deposits from HK Innoen's subscription will pour in.

A financial investment industry official said, "Due to the controversy over the overvaluation of the public offering price before the subscription, Krafton's first-day performance seems somewhat below expectations," adding, "Since Krafton is the last major IPO that allows multiple subscriptions, there is a considerable possibility that various funds will gather."