By applying the equal allocation method
10 weeks minimum subscription, many
Financial power → Competitive number of accounts
Concerns about borrowing from relative accounts
Big Hit Entertainment’s listing on the KOSPI market on October 15 last year. Hankyoreh materials
“I subscribed for only 10 shares worth 80,000 won and received 4 weeks.” The introduction of a “equal distribution” method that equally distributes half of the public offering shares allocated to individual investors appeared. According to Daishin Securities on the 24th, investors who subscribe to Finger, a fintech company whose subscription was closed on the 22nd, will receive 4 weeks. It is the result of dividing half of the individual allocation (130,000 shares) by the number of subscribers (33,170 people). The finger offering price is 16,000 won, and the margin required for a 10-week subscription (50%) is 80,000 won. It is evaluated that the incentive for small-investors to participate in the public offering has increased due to the system reorganization, as the system was reorganized as the fact that in October last year, in the subscription to Big Hit Entertainment, only two weeks were received even with a margin of 100 million won. After the SK Biopharm public offering in June last year, the financial authorities came up with a plan to expand individual subscriptions and distribute them evenly as’cash-rich’s mobilized billions of billions of dollars to wipe out the volume. The other half of the individual’s share is allocated as usual the more the subscription margin is paid. In the case of Finger, the number of shares received by investors who subscribed to the maximum (26,000 shares) has decreased from 28 shares to 18 shares this time in the past method. On the same day, electronic parts maker Solu-M, which received subscriptions from five securities companies, is also expected to receive 3 weeks for some securities companies if they put 85,000 won (10-week margin). On the 20th, C&2S Sungjin, a mask manufacturer that applied equal distribution for the first time, also received 4 weeks if they subscribed for a minimum margin of 160,000 won. On the other hand, in the case of Mobirix, a mobile game company that has been publicly offered only in the existing proportional method, the competition rate reached 1662 to 1, so that 11.9 million won (1700-week subscription margin) had to be put in to receive one week. Small investors welcomed the system change, saying that the need for loans such as negative bankbooks has decreased. Since the subscription margin of the public offering stock is refunded after 2-4 days, the’Jomakson’ can repay it immediately, so they have mainly used negative loans with low interest burden. On the other hand, it is pointed out that the opening of new accounts under the name of family members or relatives will increase to receive even one more equal allocation. In fact, in the case of a large securities company, the number of newly opened accounts exceeded 600,000 since the announcement of the restructuring in November last year. As a result, there is a possibility that a problem of borrowing or gift tax will arise. In addition, if the number of subscriptions increases and exceeds the individual allocation, it may be necessary to draw a lottery for one week allocation. Investors in public offering stocks are requesting that the host companies disclose the number of subscriptions and real competition rates in real time in accordance with the dualization of the allocation method. This is because it is difficult to determine the subscription amount based on the currently available simple competition rate. Senior Reporter Han Kwang-deok [email protected]