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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, June 16 — Mirae Asset Securities issued a formal apology to investors after failing to secure share allocations in the highly anticipated SpaceX IPO subscription, and said it is considering compensation measures to restore investor trust.
On June 15, the brokerage sent a message to participating clients under the names of its vice chairmen, acknowledging that no shares were ultimately allocated despite strong demand.
Mirae Asset Securities said it had met all qualifications to participate in the offering as part of the underwriting syndicate disclosed in filings with the U.S. Securities and Exchange Commission (SEC), and had made every effort to secure allocations. However, the final decision by the U.S. lead underwriter resulted in zero allocation.
“We deeply regret and sincerely apologize to our clients who trusted us and participated in the subscription,” the company said.
The brokerage is currently seeking clarification on the allocation decision and is reviewing various measures — including potential financial compensation — to address investor losses. It said detailed plans will be announced once finalized.
The offering, conducted on June 4–5 with a total size of $500 million, drew overwhelming demand, closing within minutes of opening. However, the allocation was ultimately canceled at the discretion of the lead underwriter.
As a result, investors who had converted funds into U.S. dollars to participate in the offering incurred foreign exchange losses. The Korean won-dollar rate stood at around 1,538 won on June 5, compared with about 1,512 won at the time of refunds, implying losses of roughly 2.6 million won for a minimum $100,000 subscription, excluding additional currency exchange fees.
Shares of Mirae Asset Securities fell 1.34% to 51,600 won on the day, underperforming the broader KOSPI, which rose 5.20%. Meanwhile, Mirae Asset Venture Investment, known to have invested in SpaceX, plunged 20.75% amid deteriorating investor sentiment.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
