Mirae Asset Securities will adjust part of the subscription allocation for SpaceX's public offering shares and offer investors a chance to withdraw their subscriptions. With heavy demand for dollar exchanges expected ahead of SpaceX's listing, the move is seen as an effort to ease pressure on the foreign exchange market.
On the 10th, according to the financial investment industry, Mirae Asset Securities closed subscriptions for SpaceX's public offering shares for individual and corporate professional investors and institutional investors that day.
According to some institutional investors who took part in the subscription, Mirae Asset Securities was said to have guided that only about 30% of the requested amount could be allocated. The industry views the adjustment in allocation size as reflecting concerns over the impact that dollar exchange demand tied to the SpaceX subscription could have on the foreign exchange market.
Mirae Asset Securities also decided to offer investors an opportunity to withdraw their subscriptions. Because overseas public offerings require a process in which shares are delivered into domestic accounts via a local depository, the earliest point at which domestic investors can actually trade the shares is expected to be on the 16th (Korea time), at least two business days after the listing.
With concerns that investors may find it difficult to respond in time if the stock price swings sharply right after listing, Mirae Asset Securities said it would notify investors in advance and offer those wishing to withdraw their subscriptions a window to apply for withdrawal until noon on the 11th.
Investors allocated public offering shares must exchange won for dollars to prepare the payment. In the case of a large overseas initial public offering (IPO) like SpaceX that concentrates investment demand, substantial dollar demand can arise in a short period.
The fact that the won-dollar exchange rate against the U.S. dollar has remained elevated recently is also seen as a factor. There have been persistent concerns that a sudden influx of large-scale exchange demand could heighten volatility in the foreign exchange market.