New stock issues on the Korean bourse plunges 58% on year in H1

2019.07.16 14:25:32 | 2019.07.16 14:26:15

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Fund-raising through new stock issues plunged 58 percent amid bearishness in the Korean market, data showed.

According to data released by the Korea Securities Depository on Tuesday, companies listed on the Korean bourses issued combined 4.31 trillion won ($3.66 billion) worth new shares from January to June, down 58.1 percent against a year ago.

Market analysts said the lackluster stock market has refrained companies from seeking to raise funds through the equity market.

The number of companies issuing new shares fell 29.4 percent on year to 139 and the markets were added with 1.41 billion shares, down 19.0 percent from a year earlier.

Issues to a third party for M&A deals took up the largest 66.3 percent or 2.86 trillion won, private placement to existing shareholders 1.21 trillion won, and public offering 245.4 billion won.

Shinhan Financial Group raised the largest 750 billion won, followed by Hanjin Heavy Industries & Construction with 687.4 billion won, Doosan Heavy Industries & Construction with 471.8 billion won, and Doosan Engineering & Construction with 315.4 billion won. Woongjin ThinkBig, the education service unit of the country’s mid-tier conglomerate Woongjing Group, expanded 310 billion won.

Meanwhile, 32 members offered 214.99 million bonus stocks to shareholders up to June this year, down 50.9 percent from the previous year. Electronic components manufacturer Moda-InnoChips Co. issued the largest 39.86 million bonus stocks during the period.

By Hong Hae-jin and Lee Ha-yeon

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