Listed at an IPO price of 2,000 KRW on the 30th of last month
Raised funds are deposited in KB Bank
Price surged to the upper limit after the initial jump
[Asia Economy Reporter Hyungsoo Park] Since Samsung SPAC 6 was listed on the KOSDAQ market on the 30th of last month, it continued a four-day streak of hitting the upper price limit before plunging sharply. Due to the nature of SPACs, there is no value to assess other than the cash held until the merger target company is determined. The value of the account containing 10 billion KRW in cash soared to 63 billion KRW before falling back to the 50 billion KRW range.
According to the financial investment industry on the 6th, the stock price of Samsung SPAC 6 surged 470% to 11,400 KRW just four trading days after listing at the public offering price of 2,000 KRW. On the first day of listing, the opening price was set at 4,000 KRW, double the public offering price, then soared to the price limit. The daily trading volume exceeds 60 billion KRW on average. On the morning of the day, Samsung SPAC 6’s stock price rose to 12,200 KRW before dropping below 10,000 KRW.
Institutional investors sold 810,000 shares on the day of listing and continued their selling streak, recording a net sale of 1.07 million shares over four days. During the same period, the foreign ownership ratio dropped from 1.15% to 0.68%. Individuals purchased shares worth 6.7 billion KRW over the four days.
SPACs operate under the "Capital Markets and Financial Investment Business Act" with the sole business purpose of merging with another company. The 10 billion KRW raised from the public offering is deposited with KB Kookmin Bank until the merger. If the merger registration with the target company is not completed within 36 months and the SPAC is dissolved, shareholders will be refunded 2,091 KRW per share including interest. This amount assumes a deposit interest rate of 1.5%, and the refund amount will change if the interest rate varies. The operating funds for the SPAC over three years are covered by the founding capital of 520 million KRW and 1.48 billion KRW raised through convertible bonds issued before listing.
Samsung SPAC 6 introduced plans to actively explore industries with high future growth potential and global competitiveness to find merger targets. It highlighted key industry sectors such as renewable energy, biopharmaceuticals and medical devices, IT convergence systems, green transportation systems, carbon reduction energy, and entertainment.
Lee Joo-hyuk, CEO of Samsung SPAC 6, who plays a key role in finding merger targets, is currently working at SBI Investment. Since 2012, Lee Joo-hyuk, Director of Venture Investment Division 2, has been in charge of investment while serving as head of the venture investment team at BSK Investment. Previously, he worked at Ernst & Young Advisory PI Consulting and KB Investment & Securities Research Center. After moving to SBI Investment in March 2017, he supported IPOs of various companies such as Osteonic, Wysiwyg Studio, InnoTherapy, MindsLab, Lamong Lane, and DearU.
Recently, he also participated in Series B investment in Foodpang, Korea’s No.1 food ingredient B2B platform company operating its own logistics system based on wholesale markets. He continues his investment activities, including early-stage (Series A) investment in ExoSystems, an AI technology-based digital healthcare company.
Compared to existing SPACs, Samsung SPAC 6’s distinctive features have not yet emerged. NH SPAC 23, which was listed two days earlier than Samsung SPAC 6, closed trading on the 5th at 2,120 KRW, 6% higher than the public offering price of 2,000 KRW. The financial investment industry views the rapid rise phenomenon as driven by speculative funds flocking to some SPACs with small market capitalization.
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