binance left Huobi Global Coinmarketcap net_left Phương Thức Thanh Toán
Phương Thức Thanh Toán

South Korea's IPO boom leaves investment banks short changed

By Scott Murdoch and Heekyong Yang HONG KONG/SEOUL (Reuters) - South Korea's equity offering boom has created a money spinning opportunity for issuers and investors, but it has...
South Korea's IPO boom leaves investment banks short changed © Reuters.

By Scott Murdoch and Heekyong Yang

HONG KONG/SEOUL (Reuters) - South Korea's equity offering boom has created a money spinning opportunity for issuers and investors, but it has brought little cheer to at least one segment of the capital market: investment banks and brokerages working on those transactions.

LG Energy Solution Ltd's (LGES) $10.8 billion initial public offering (IPO), the largest ever in South Korea, netted bankers working on the deal less than 1% of the proceeds, Dealogic data showed.

Such rates make the country one of the lowest fee-paying major equity capital markets (ECM) in the world.

Hong Kong IPOs generally pay fees of 2%, in line with the New York Stock Exchange, while Nasdaq listings net bankers an average of 3.4%, according to Dealogic data. In 2021, the average paid in those markets sat at 3.2%.

The low fee payouts mean South Korea will unlikely emerge as a major income generator for Western banks, even as the country is witnessing a record level of capital market activity and a new equity raising pipeline that is getting busier.

South Korean IPOs have traditionally paid low fees compared with other major markets, said one Hong Kong-based ECM banker with direct knowledge of the matter.

"Korea has never paid well, so it doesn't surprise me ... but a few million bucks is still a few million bucks," said the banker, who was not permitted to speak to the media and so declined to be identified.

Eleven investment banks and brokerage firms including Morgan Stanley (NYSE:MS), Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C) and Goldman Sachs Group (NYSE:GS) Incand local brokerage KB Securities worked on the IPO of South Korean battery maker LGES.

They are set to pocket a combined $75 million, the company's IPO prospectus showed. That payment, as a portion of total funds raised, equates to 0.7% - one of the lowest proportions paid in a major market globally.

The IPO, Asia's largest since Alibaba (NYSE:BABA) raised $12.9 billion in its Hong Kong secondary listing in 2019, attracted $12.8 trillion worth of bids from institutional investors and $96 billion from retail investors.

LGES is not alone in paying a low fee: KakaoBank Corp, which raised $2.1 billion via an IPO in July last year, handed bankers a 0.8% base fee, while underwriters for Krafton Inc got 0.5% for their work on a $3.6 billion deal in the same month, their prospectuses showed.

Local brokerages are, however, not complaining.

"We felt that getting that 0.7% commission was pretty good enough, considering the level of the LGES deal," said a person at a local brokerage with knowledge of the transaction.

"The base fee could seem lower than fees in other major markets like New York or Hong Kong, but the LGES deal was not necessarily too difficult for brokerage firms or banks to handle."

Surging deal volume in the country should also offset the impact of the low fee base in the near term.

More than 20 companies went public on the main market last year, raising about 17 trillion won ($14 billion) and beating the previous record of 8.8 trillion won raised in 2010, according to bourse operator Korea Exchange.

Experts said appetite for IPOs in South Korea would likely continue into 2022 as some unicorns and e-commerce firms are seeking to go public this year to take advantage of the IPO market optimism.

($1 = 1,194.4000 won)

Hot Auto Trade Bot ig right nyse right Neteller Phương Thức Thanh Toán
BROKERS ĐƯỢC CẤP PHÉP
rakuten_main right top net_home_top Ai VIF Binance _ main right top fbs_main right top tifia_main right top
27-05-2022 09:48:20 (UTC+7)

EUR/USD

1.0755

+0.0032 (+0.29%)

Summary

Neutral

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (3)

Sell (4)

EUR/USD

1.0755

+0.0032 (+0.29%)

Summary

Neutral

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (3)

Sell (4)

GBP/USD

1.2655

+0.0061 (+0.48%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

USD/JPY

126.68

-0.46 (-0.36%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

AUD/USD

0.7135

+0.0037 (+0.52%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

USD/CAD

1.2754

-0.0018 (-0.14%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (6)

EUR/JPY

136.26

-0.08 (-0.06%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

EUR/CHF

1.0290

+0.0003 (+0.02%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

Gold Futures

1,852.04

+4.44 (+0.24%)

Summary

Neutral

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (1)

Sell (5)

Silver Futures

22.073

+0.108 (+0.49%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (6)

Copper Futures

4.2893

+0.0161 (+0.38%)

Summary

Neutral

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (1)

Sell (8)

Crude Oil WTI Futures

114.02

-0.07 (-0.06%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

Brent Oil Futures

114.21

+0.04 (+0.04%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Natural Gas Futures

8.827

+0.018 (+0.20%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (3)

Sell (5)

US Coffee C Futures

225.78

+8.73 (+4.02%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (7)

Euro Stoxx 50

3,740.31

+92.75 (+2.54%)

Summary

Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (2)

Sell (5)

S&P 500

4,057.84

+79.11 (+1.99%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

DAX

14,231.29

+223.36 (+1.59%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (1)

Sell (6)

FTSE 100

7,564.92

+42.17 (+0.56%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (1)

Sell (6)

Hang Seng

20,684.00

+567.80 (+2.82%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (0)

Sell (8)

US Small Cap 2000

1,838.24

+39.07 (+2.17%)

Summary

Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (5)

Sell (5)

IBEX 35

8,888.80

+128.60 (+1.47%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (0)

Sell (7)

BASF SE NA O.N.

50.790

+1.325 (+2.68%)

Summary

Neutral

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (1)

Sell (4)

Bayer AG NA

65.90

+2.12 (+3.32%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (5)

Sell (3)

Allianz SE VNA O.N.

198.80

+1.32 (+0.67%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Adidas AG

176.76

+4.68 (+2.72%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

Deutsche Lufthansa AG

6.850

+0.073 (+1.08%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (1)

Siemens AG Class N

118.52

+3.70 (+3.22%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

Deutsche Bank AG

10.414

+0.158 (+1.54%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (8)

Sell (0)

 EUR/USD1.0755Neutral
 GBP/USD1.2655↑ Buy
 USD/JPY126.68↑ Sell
 AUD/USD0.7135↑ Buy
 USD/CAD1.2754↑ Sell
 EUR/JPY136.26↑ Sell
 EUR/CHF1.0290↑ Sell
 Gold1,852.04Neutral
 Silver22.073↑ Sell
 Copper4.2893Neutral
 Crude Oil WTI114.02↑ Sell
 Brent Oil114.21↑ Sell
 Natural Gas8.827Neutral
 US Coffee C225.78↑ Sell
 Euro Stoxx 503,740.31Sell
 S&P 5004,057.84↑ Sell
 DAX14,231.29↑ Sell
 FTSE 1007,564.92↑ Sell
 Hang Seng20,684.00↑ Sell
 Small Cap 20001,838.24Buy
 IBEX 358,888.80↑ Sell
 BASF50.790Neutral
 Bayer65.90↑ Buy
 Allianz198.80↑ Buy
 Adidas176.76↑ Buy
 Lufthansa6.850↑ Buy
 Siemens AG118.52↑ Buy
 Deutsche Bank AG10.414↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,820/ 6,930
(0/ 10) # 1,720
SJC HCM6,840/ 6,940
(10/ 10) # 1,730
SJC Hanoi6,840/ 6,942
(10/ 10) # 1,732
SJC Danang6,840/ 6,942
(10/ 10) # 1,732
SJC Nhatrang6,840/ 6,942
(10/ 10) # 1,732
SJC Cantho6,840/ 6,942
(10/ 10) # 1,732
Cập nhật 27-05-2022 09:48:22
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,853.29-0.84-0.05%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-V31.25031.870
RON 95-III30.65031.260
E5 RON 92-II29.63030.220
DO 0.05S25.55026.060
DO 0,001S-V26.35026.870
Dầu hỏa 2-K24.40024.880
ↂ Giá dầu thô thế giới
WTI$114.00-1.19-1.04%
Brent$117.37-1.52-1.29%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD23.030,0023.340,00
EUR24.263,1125.622,23
GBP28.523,9629.740,84
JPY177,60188,03
KRW15,9119,38
Cập nhật lúc 09:39:54 27/05/2022
Xem bảng tỷ giá hối đoái
binance main right Fxpro Main Right aetos main right Phương Thức Thanh Toán