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Photo = Samsung SDI |
[Alpha Biz= Paul Lee] Equity issuance in South Korea surged nearly 400% in May, largely driven by a massive ₩1.65 trillion (approx. $1.2 billion) rights offering by Samsung SDI (KRX: 006400), according to data released by the Financial Supervisory Service (FSS) on June 30.
The FSS reported that total equity issuance in May amounted to ₩1.82 trillion across 9 cases, marking a sharp ₩1.44 trillion increase (386.5%) compared to April’s ₩373.4 billion across 6 cases.
In particular, rights offerings accounted for ₩1.68 trillion across 3 cases—a 493.6% jump from April’s ₩282.5 billion. Initial Public Offerings (IPOs) also showed growth, reaching ₩139.4 billion across 6 cases, up 53.4% from ₩90.9 billion in April.
“The sharp rise in equity issuance was primarily driven by Samsung SDI’s large-scale capital increase, aimed at securing funds for facility expansion and acquisitions,” the FSS stated.
Despite the equity market uptick, total public offering volume of equities and corporate bonds fell to ₩21.3 trillion, a ₩9.48 trillion decrease (30.8%) from the previous month. This decline was attributed to a significant 36% drop in corporate bond issuance, offsetting the gains from equity markets.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
