October Stock Issuance 2.5 Trillion Won... 22% Increase MoM Due to Rise in Large IPOs

[Asia Economy Reporter Park Jihwan] Last month, the scale of stock issuance by domestic companies increased by more than 22% compared to the previous month.

According to the 'Direct Financing Performance of Companies in October' announced by the Financial Supervisory Service on the 23rd, the total amount of stock and corporate bond issuance by domestic companies in October was 19.1507 trillion KRW, a decrease of 473.6 billion KRW compared to September.

Among these, stock issuance last month amounted to 2.4852 trillion KRW, an increase of 22.1% (450.3 billion KRW) compared to the previous month. Despite a decrease in paid-in capital increases, this was influenced by KakaoPay's initial public offering (IPO) worth 1.53 trillion KRW.

There were a total of 11 IPOs amounting to 2.0919 trillion KRW, an increase of 643.3 billion KRW (44.4%) compared to September (14 cases, 1.4486 trillion KRW). Paid-in capital increases amounted to 393.3 billion KRW (6 cases), a decrease of 32.9% compared to September (586.3 billion KRW, 9 cases).

Corporate bond issuance in October was 16.6655 trillion KRW, down 5.3% from the previous month. General corporate bonds amounted to 3.202 trillion KRW (41 cases), a 35.3% decrease from the previous month (47 cases). Issuance focused on medium- to long-term bonds continues, with facility funds decreasing and operating and refinancing funds increasing this month. In particular, the proportion of high-quality bonds centered on AAA credit ratings expanded to 55.9%.

Financial bond issuance was 12.079 trillion KRW (154 cases), an increase of 3.8% from the previous month. Asset-backed securities (ABS) issuance was 1.3845 trillion KRW (75 cases), up 38.8%.

In October, the issuance amount of commercial paper (CP) and short-term bonds totaled 139.4089 trillion KRW, an increase of 1.6% compared to the previous month. CP issuance increased by 22.2% to 44.1202 trillion KRW, while short-term bond issuance decreased by 5.8% to 95.2887 trillion KRW.