Offerings of Korean stocks down to 2-year low, bonds up 36% in April

2019.05.30 14:40:28

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Korean stock public offerings have fallen to the lowest in two years, whereas bond market was alive and kicking last month as investors turned to safer assets amid growing pessimism about Korean Inc.

According to the Financial Supervisory Service on Thursday, new stock issues totaled 110.5 billion won in April, down 63.6 percent from a month ago and 92.7 percent a year earlier. The figure is the lowest since 90 billion won worth in May 2017.

Initial public offering plunged 93.6 percent to 15.5 billion won worth as companies delayed going public due to unfavorable market conditions. Rights offerings to existing shareholders jumped 58.9 percent to 95 billion won,

Stock issuance by companies has hovered below 1 trillion won since April last year and dropped sharply last month due to cancellation of mega IPOs. Only two stocks newly joined the junior Kosdaq in April.

The pipeline in the bond market however remained hot. New issues jumped 36.9 percent to 19.63 trillion won last month.

A total of 4.88 trillion won worth of corporate bonds were issued, up 36.3 percent from March. Financial companies also sold total 13.27 trillion won worth, up 42.6 percent on month, and asset-backed securities (ABS) issuance rose 2 percent to 1.49 trillion won worth.

Outstanding balance in corporate debt reached 500.12 trillion won as of last April, up 1.2 percent on month. Commercial papers issued last month rose 30.6 percent to 33 trillion won worth, and short-term bonds 18 percent up to 101.32 trillion won worth.

By Jin Young-tae and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]