November Stock Issuance Surges 656%... Impact of EcoproMity IPO and Hanwha Ocean Capital Increase

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

Last month, the issuance volume of stocks and corporate bonds increased significantly. In particular, the stock issuance volume surged by more than 650% due to the initial public offering (IPO) of Ecopro Materials and the paid-in capital increase of Hanwha Ocean.

According to the Financial Supervisory Service on the 21st, the stock issuance volume last month was 31 cases, totaling 3.1225 trillion KRW, an increase of 2.7096 trillion KRW (656.2%) compared to the previous month.

For IPOs, there were 21 cases amounting to 939.2 billion KRW, up 713.3 billion KRW (315.8%), and for paid-in capital increases, there were 10 cases totaling 2.1833 trillion KRW, an increase of 1.9963 trillion KRW (1067.6%). Ecopro Materials raised 400 billion KRW through its IPO, and Hanwha Ocean procured approximately 1.5 trillion KRW through its paid-in capital increase, driving this growth trend.

The corporate bond issuance volume reached 23.2883 trillion KRW, up 4.2861 trillion KRW (22.6%) from the previous month. General corporate bonds amounted to 1.22 trillion KRW across 17 cases, decreasing by 1.249 trillion KRW (50.6%). However, financial bonds increased by 7.167 trillion KRW (55.6%) to 20.0663 trillion KRW across 323 cases. Asset-backed securities (ABS) recorded 91 cases totaling 2.002 trillion KRW, down 1.6319 trillion KRW (44.9%).

As of the end of last month, the total outstanding corporate bond balance was 640.5112 trillion KRW, an increase of 8.0336 trillion KRW (1.3%) from the previous month. The issuance amount of general corporate bonds was below the 2 trillion KRW repayment in November, maintaining a net repayment trend.

Last month, the issuance performance of commercial paper (CP) and short-term bonds was 114.0595 trillion KRW, a decrease of 5.6035 trillion KRW (4.7%). CP issuance totaled 40.6226 trillion KRW, down 20.39 billion KRW (0.5%), and short-term bonds amounted to 73.4369 trillion KRW, decreasing by 5.3996 trillion KRW (6.8%) compared to the previous month.

As of the end of last month, the outstanding balances of CP and short-term bonds were 206.0715 trillion KRW and 68.2573 trillion KRW, respectively. The CP balance increased by 3.2% from the previous month, while short-term bonds decreased by 6.1%.