'IPO Also Sees Baek Jong-won Effect'... Stock Issuance in October Up 590.7%

Financial Supervisory Service Announces 'October Corporate Direct Financing Performance'

Thanks to 'The Born Korea,' which went public last month, the scale of domestic stock issuance also increased significantly.

According to the 'Direct Financing Performance of Companies in October' announced by the Financial Supervisory Service on the 18th, the amount of stock issuance in October was 767.6 billion KRW, an increase of 656.5 billion KRW (590.7%) compared to the previous month.

The increase was largely due to the rise in the number and scale of IPOs compared to last month. There were 17 IPOs in October, more than three times the 4 IPOs in the previous month. The average IPO size also more than doubled to 37.6 billion KRW from the previous month's average of 15.5 billion KRW.

Although there were no IPOs on the KOSPI market in October, the IPO of The Born Korea (based on the submission of the securities registration statement and payment date) had a significant impact.

Rights offerings also increased by 158.8% to 4 cases totaling 127.7 billion KRW, compared to 2 cases totaling 49.3 billion KRW in the previous month. Corporate bonds issuance amounted to 30.3224 trillion KRW, a decrease of 1.213 trillion KRW (3.8%) from the previous month's 31.5354 trillion KRW.

While the issuance of general corporate bonds increased by 1.955 trillion KRW (63.7%) to 5.026 trillion KRW from 3.071 trillion KRW in the previous month, the issuance of financial bonds decreased by 3.8472 trillion KRW (14.4%) to 22.9171 trillion KRW from 26.7643 trillion KRW.

Both commercial paper (CP) and short-term bonds saw slight increases in issuance compared to the previous month. CP issuance rose by 8.7% to 44.9202 trillion KRW, and short-term bonds increased by 2.4% to 83.1079 trillion KRW.