Achieved 20% of foreign subscriptions with only’native’ IB… SK Biopharm Big Hit’Overwhelmed’
[팍스넷뉴스 전경진 기자] SK Bioscience recorded the largest hit in history in the demand forecast for IPO. Contrary to initial concerns, it secured about 20% of all institutional subscription orders from overseas investors, capturing attention in both domestic and international markets. In the industry, it is evaluated that these securities companies have proven themselves as global investment banks (IBs) in that they attracted the attention of foreign investors only with domestic supervisory divisions such as NH Investment & Securities, Korea Investment & Securities, and Mirae Asset Daewoo without foreign securities companies.
On the 8th, SK Bioscience confirmed the final public offering price at 65,000 won, the top of the Hope Band (49,000 won-65,000 won). The demand forecast competition rate is 1,275 to 1, the largest box office record in the history of IPOs in the securities market (KOSPI). The previous record was Myeongshin Industries (1196:1), which was listed on the KOSPI last year.
SK Bioscience conducted a demand forecast on the 4th-5th. The share of public offering stocks allocated to the institution is up to 75% (1721,500 shares) of the total number (2.295,000 shares).
SK Bioscience’s IPO is a super-large deal worth 1.491.8 billion won in’open scale’ alone. There are only eight IPOs whose public offerings have exceeded KRW 1 trillion since 2000.
A new box office record came out in the ultra-large IPO due to the high investment enthusiasm of not only domestic but also foreign institutional investors. Foreign institutions accounted for 19.1% of the total institutional subscription orders (16 billion 99,563214 shares) that came into demand forecasting (3,2827,214,214 shares). This is a number that exceeds the number of orders for foreign institutions subscribed to SK Biopharm (2.5%) and Big Hit Entertainment (16.8%), which were successful in IPO last year.
In addition to this box office hit, the industry is also receiving favorable reviews for the ability of the listing organizers to attract overseas customers (sales). This is because NH Investment & Securities, Korea Investment & Securities, and Mirae Asset Daewoo, the listed supervisors, have achieved a large number of domestic and foreign institutions participating in the subscription without foreign supervisors.
Some are evaluating whether native IBs have even secured the ability to manage IPO deals that can stand shoulder to shoulder with global IBs. Earlier, in the case of SK Biopharm and Big Hit Entertainment alone, one or two foreign securities companies were included in the supervisory division. In the case of SK Biopharm (a public offering of 95.9 billion won), foreign securities companies such as Citi Global Market Securities and Morgan Stanley were included in the management division. Big Hit Entertainment (public offering size of 966.2 billion won) also joined JP Morgan to the supervising division to take charge of overseas sales.
The face of foreign organizations participating in SK Bioscience’s subscription is also gorgeous. Many of the medium and long-term investment-oriented institutions participated in the subscription. It is believed that the Singapore Investment Agency (GIC) and Norway’s Central Bank (Norges Bank), as well as a number of global long funds, have placed orders to buy public offerings.
As the global sales capabilities of native IBs are proven, there is also a prospect that large-scale IPOs without foreign securities companies will appear one after another. An official from the IB industry said, “There was a kind of prejudice among companies that a foreign supervisor who will take charge of overseas sales in order to conduct a large-scale IPO is necessary. It will contribute to the solution,” he said.
Meanwhile, positive outlooks for NH Investment & Securities, the only representative organizer, are also flowing. It is analyzed that it will occupy a more favorable position in taking on a big deal in the future as it is responsible for more public offering stock sales than co-organizers, Korea Investment & Securities and Mirae Asset Daewoo. Another IB industry official said, “NH Investment & Securities has been somewhat sluggish in the bidding competition in the industry recently, but based on the success of SK Bioscience, we have prepared an opportunity for a reversal.”
SK Biosciences was established in July 2018 through a physical split from SK Chemicals, and the largest shareholder is SK Chemicals (98.04% stake in the competition). It is scheduled to be listed on KOSPI on the 18th after general subscription for two days from 9 to 10. The general subscription volume is 573,500 to 6885,000 shares, which is 25 to 30% of all public offerings.
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