March. 11. 2021
SK Bioscience IPO Raises Hope Amongst Nationwide Securities Corporations for New Underwriting Alternatives
|Proven above is a Korea Funding & Securities gross sales workplace in Yeouido, Seoul on Tuesday when the corporate started receiving two-day public subscription requests for shares for the SK Bioscience IPO. Yonhap|
By Lee Min-hyung
Native securities corporations are more and more wanted as the first underwriters of preliminary public choices (IPOs) deliberate by giant corporations following the profitable public subscriptions of SK Bioscience shares.
The SK Group subsidiary closed a two-day public subscription to its IPO beginning Tuesday, with deposits reaching 63.6 trillion gained ($ 56 billion) with out assist from main funding banks foreigners.
Overseas institutional buyers accounted for 20 p.c of whole subscriptions, the outcomes of which stunned trade watchers, because the underwriting pool is made up of six Korean securities corporations.
It’s “very uncommon” for a large-cap firm to interact within the pre-IPO fundraising course of with out the assist of overseas underwriters.
SK Bioscience’s profitable underwriting raises hopes amongst home securities corporations to leverage their abroad gross sales alternatives.
NH Funding & Securities was the lead supervisor of the SK Bioscience itemizing. Korea Funding & Securities and Mirae Asset Daewoo acted as alternate underwriters.
“The continued whirlwind of native inventory markets on hopes of a gradual financial restoration, which is partially a results of large stimulus launches alongside low rates of interest pulling buyers into the inventory market.” These components are attracting extra consideration from overseas buyers, and brokerage corporations are additionally benefiting from the worldwide rise of KOSPI, ”an trade supply stated.
Korean corporations are inclined to want well-known international funding banks corresponding to Goldman Sachs, Citi, Financial institution of Korea-Merrill Lynch, and Credit score Suisse as monetary advisers in the case of IPOs. In January, LG Power Answer chosen Morgan Stanley as the primary overseas underwriter for its IPO.
“The securities trade in Korea expects extra publicly traded corporations to observe in SK Bioscience’s footsteps by relying extra on the improved skills of Korean corporations to draw overseas capital,” the supply stated.
SK Bioscience is a contract producer of natural merchandise and plans to go public on the benchmark KOSPI on March 18. The corporate has set its IPO worth per share at 65,000 gained, and its estimated enterprise worth after itemizing will exceed 5,000 billion gained. A biopharmaceutical firm and one of many nation’s main coronavirus vaccine builders, SK Bioscience is a wholly-owned subsidiary of SK Chemical substances and is finest recognized for manufacturing AstraZeneca’s COVID-19 vaccine.