The analysis of corporations' direct finance raising performance from last month shows that stock issuance has decreased by about 40% compared to January of this year. This decline is analyzed to be influenced by the sharp drop in initial public offerings (IPOs).
According to the ‘February direct finance raising performance of corporations’ released by the Financial Supervisory Service on the 26th, last month's stock issuance amount decreased by 40.1% compared to the previous month (7.394 trillion won), amounting to 4.432 trillion won.
The Financial Supervisory Service explained that this is the result of a focus on small to mid-sized IPOs as large-scale IPOs have disappeared.
Last month, there were nine IPOs with a total scale of about 205.4 billion won. The same number of IPOs was conducted in January, but the total scale reached 728.9 billion won. Compared to the previous month, the scale of last month's IPOs decreased by 523.5 billion won (71.8%).
Last month's paid-in capital increase amounted to 237.8 billion won, a staggering increase of 2,174.2% compared to the previous month. This was due to five listings on the KOSDAQ and one on the unlisted exchange, as small and medium enterprises conducted paid-in capital increases to raise operating and facility funds.
The scale of corporate bond issuance reached 27.5635 trillion won, an increase of 18.3% from the previous month. Standard corporate bonds issuance was 10.770 trillion won, up 28.2%, while financial bonds reached 15.8679 trillion won, increasing by 14.8%.
The issuance of asset-backed securities (ABS) decreased by 13.0% to 9.256 trillion won. The total issuance of commercial paper (CP) and short-term bonds was 118.1406 trillion won, down by 9.0912 trillion won (7.1%) compared to the previous month. The amount of CP issued was 35.6633 trillion won, a decrease of 18.9%, while short-term bonds amounted to 82.4773 trillion won, down by 0.9%.