Seoul, South Korea – South Korea saw a significant surge in equity financing in October, driven by a surge in Initial Public Offerings (IPOs). According to data released by the Financial Supervisory Service on November 18th, equity issuance reached 767.6 billion won last month, a substantial increase of 590.7% compared to the previous month.

The surge in equity financing was primarily attributed to an increase in both the number and size of IPOs. In October, 17 companies went public, raising an average of 376 billion won per deal, compared to just four companies raising an average of 155 billion won in September. Notably, The Born Korea, led by CEO Baek Jong-won, conducted its IPO during this period.

In addition to IPOs, follow-on public offerings also contributed to the increase in equity financing. A total of four companies raised 1.277 trillion won through follow-on offerings in October, a 158.8% increase from the previous month.

While equity financing saw a significant boost, the issuance of corporate bonds decreased slightly. In October, the issuance of corporate bonds totaled 30.322 trillion won, a 3.8% decrease compared to the previous month. However, the issuance of financial bonds declined by 14.4% to 22.917 trillion won, while the issuance of general corporate bonds increased by 63.7% to 5.26 trillion won.

The issuance of commercial paper (CP) and short-term corporate bonds also increased slightly compared to the previous month. CP issuance rose by 8.7% to 44.92 trillion won, and short-term corporate bond issuance increased by 2.4% to 83.108 trillion won.

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