Korean Oct stock issues up 22%, debt offering down on imminent rate hike

2021.11.23 11:01:06 | 2021.11.23 13:49:55

[Photo by Lee Seung-hwan]이미지 확대

[Photo by Lee Seung-hwan]

Stock issuance by Korean Inc. jumped 22 percent on month in October largely due to 1.5 trillion won ($1.3 billion) initial public offering of Kakao Pay, while bond offerings fell on anticipation for higher interest rates.

According to data released by the Financial Supervisory Service on Tuesday, local companies raised 2.48 trillion won through equity offering in October, up 22.1 percent from the previous month.

IPO turnover surged 44.4 percent on month to 2.09 trillion won, with the bulk owing to the 1.53 trillion won worth offering by fintech platform operator Kakao Pay Corp. under the country’s largest messenger operator Kakao Corp. There were 11 new entrants to the country’s stock market, three less than the previous month.

Rights offering amounted to 393.3 billion won, off 193 billion won from a month earlier.

[Source: Financial Supervisory Service]이미지 확대

[Source: Financial Supervisory Service]

Debt issues in October totaled 16.6 trillion won, down 5.3 percent on month due to growing volatility in the bond market on imminent possibility of a rate hike.

Issuance of corporate bonds totaled 3.2 trillion won in October, down 35.3 percent from the previous month. The offering was mostly in mid-to-long dated papers for refinancing, with 55.9 percent sold by AA or higher investment grade issuers.

Issues of financial notes reached 12.1 trillion won, up 3.8 percent on month and asset-backed securities 1.3 trillion won, up 38.8 percent.

Equity and corporate debt issues combined totaled 19.1 trillion won in October, off 2.4 percent on month.

Commercial paper issues gained 22.2 percent to 44.1 trillion won, while short-term debenture issues fell 5.8 percent to 95.2 trillion won.

By Lee Soo-min

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