On the 8th, investors are being consulted at the Korea Investment & Securities Sales Department in Yeouido, Seoul to open an account. With the even distribution system in place from this year, investors are drawing attention to the subscription to SK Bioscience, as public offering stocks can be allocated with a small amount of money. Reporter Kim Youngwoo [email protected] “/>
On the 8th, investors are being consulted at the Korea Investment & Securities Sales Department in Yeouido, Seoul to open an account. With the even distribution system in place from this year, investors are drawing attention to the subscription to SK Bioscience, as public offering stocks can be allocated with a small amount of money. Reporter Kim Youngwoo [email protected]
SK Bioscience’s general subscription, which is regarded as the’large fish’ in the public offering stock market this year, will begin on the 9th. The market atmosphere is already hot. Earlier, in the demand forecast for institutional investors, the competition rate recorded a record high of 1,275 to 1. Targeting SK Bioscience’s subscription, there was also a case where the sale of a significant number of funds was halted due to the influx of funds to public offering funds. Some investors visit securities companies to open accounts to receive even one more week. SK Bioscience stocks are trading at a much higher price than the expected offering price in the market where unlisted stocks are traded.
○ Will the subscription margin exceed 60 trillion won?
SK Bioscience announced on the 8th that it recorded a competition rate of 1275 to 1 in the demand forecast for institutional investors on the 4th and 5th. It is the highest record in the history of the Korean capital market. Considering that the size of the public offering is about 1.5 trillion won, the amount spent by the institutions amounted to 1,900 trillion won. A total of 1464 places, including 1,172 domestic and 292 foreign, participated in this demand forecast. Among overseas institutions, Singapore Investment Agency (GIC) and Norway Bank were added. Institutions have applied for a total of 16 billion, 99,56,3214 shares. 97% of the participating organizations offered prices that exceeded the desired price range. The proportion of the mandatory holding commitment promised not to sell stock for a certain period was 59.92% of the total volume. This is lower than SK Biopharm (81.15%). The organizer decided to allocate additional public offering stocks to the organizations that applied for the commitment to hold the obligation. Until now, exceptions were allowed to foreign institutions, but this time, as with domestic institutions, it was induced to commit.
SK Bioscience has decided not to raise the offering price despite the successful demand forecast. Accordingly, the public offering price was decided at 65,000 won. Through this public offering, SK Bioscience will raise KRW 1,491.8 billion.
○ Power to open 1 million accounts
Subscriptions for individual investors will be held at the same time at six securities companies, including NH Investment & Securities, Korea Investment & Securities, Mirae Asset Daewoo, SK Securities, Samsung Securities, and Hana Financial Investment, for two days from the 9th. Multiple subscriptions are possible. Accounts can be opened by the 9th, the first day of subscription for Samsung Securities and Hana Financial Investment, and by the 10th, the last day of subscription for Korea Investment & Securities and Mirae Asset Daewoo.
As the equal distribution system of public offering stocks is implemented from this year, public offering stocks can be received with a small amount of money. You can receive more than one week even if you subscribe only for the minimum subscription quantity of 10 weeks. For this reason, only 600,000 new accounts were opened in January-February this year, only at NH Investment & Securities, the leading company. If the remaining five securities companies are added, more than 1 million accounts are expected to participate in the subscription.
SK Biosciences will be listed on the stock market on the 18th. If the initial price on the day of listing is formed at twice the public offering price and then the upper limit is recorded (aka’dasang’), the stock price is 169,000 won. You can see a price margin of 104,000 won per share. In the over-the-counter market, SK Bioscience’s stock price is in the 200,000 won range.
○ Inflow of KRW 1.7 trillion in public offering funds
SK Bioscience is also shaking the public offering fund market. Many managers have stopped selling public equity funds. This is due to the rapid inflow of over 1.7 trillion won in funds this year. The fund’s size is too large to be difficult to manage, and the amount of money to which a specific fund is allocated first is limited, so it was judged that it could adversely affect existing investors.
Among securities firms, Mirae Asset Daewoo, NH Investment & Securities, and Samsung Securities recently blocked new subscriptions to major public offering funds. Asset One Asset Management, a public offering fund manager, stopped selling the public offering KONEX High Yield 2 fund and the public offering KOSDAQ venture fund since last month.
The branches of securities companies are crowded with individual investors who want to open additional accounts for subscription. Most brokerage firms block the opening of additional non-face-to-face accounts within 20 business days after opening an account. However, in some cases it is possible to open an account by submitting documents such as a confirmation of opening an account and transaction details face-to-face. An official at a securities company said, “The number of people who want to open multiple accounts or open family accounts to receive public offerings has increased significantly.”
Reporter Jeon Ye-jin/Seol Ji-yeon [email protected]