As the number of initial public offerings (IPOs) and paid-in capital increase increased last month, ..
Financial Supervisory Service’s February direct financing results
As the number of initial public offerings (IPOs) and paid-in capital increase increased last month, companies’ stock issuance more than tripled from the previous month. On the other hand, corporate bonds have increased in issuance itself, but net repayment has continued for two months, mainly for general corporate bonds.
According to the “direct financing performance of companies in February” released by the Financial Supervisory Service on the 31st, the issuance of public offerings through stocks and corporate bonds totaled 19.2497 trillion won in February, up 8.5% from the previous month.
Among them, there were a total of 7 stock issues and 341.5 billion won, up 215.6% from 4 the previous month and 108.2 billion won. The increase in stock issuance was led by IPO and paid-in capital increase. IPOs amounted to 3 cases, 290.8 billion won, up 265.8% from the previous month’s 2 cases and 79.5 billion won. In particular, K-Bank, which succeeded in listing as the No. 1 KOSPI this year after three challenges, raised KRW 249 billion, boosting its overall performance. The other two were small and medium-sized IPOs for KOSDAQ listing.
The number of paid-in capital increase was also 4 cases and 50.7 billion won, up 76.7% from 2 cases and 28.7 billion won the previous month. All of the companies that carried out paid-in capital increase were KOSDAQ-listed small and medium-sized companies.
Corporate bond issuance amounted to 18.9082 trillion won, up 7.2 percent from the previous month. However, the net repayment trend continued. As of the end of February, the total balance of corporate bonds was 748.44 trillion won, down 0.6% from the previous month. This is due to the net repayment of general corporate bonds.
In fact, 50 general corporate bonds were issued in February, KRW 5.1137 trillion, down 28.7% from the previous month, and net repayment reached KRW 3.41 trillion. It is interpreted that companies have been conservative in issuing general corporate bonds due to growing market uncertainty due to the prolonged war in the Middle East.
On the other hand, financial bonds increased 37.6% month-on-month to 193 cases and 13.367 trillion won. Asset-backed securities (ABS) fell 42.6 percent to 427.5 billion won with 49 cases.
In the short-term fund market, the trend between CP and short-term bonds was mixed. CP issuance fell 19.3 percent from the previous month to 37.85 trillion won in February, but short-term bonds rose 12.9 percent to 121.7163 trillion won. As a result, the combined issuance of CP and short-term bonds reached 159.5722 trillion won, up 3.1% from the previous month.
