Mirae Asset Weighs Compensation, Apologizes After SpaceX IPO Subscribers Get No Shares
Summary
- Mirae Asset Securities said it has formally apologized to domestic professional investors who joined the SpaceX advance subscription and is reviewing financial compensation.
- Mirae Asset said it conducted the offering with proper qualifications after being included as an underwriter in the SEC filing (S-1), but did not receive a domestic IPO share allocation because of Goldman Sachs' decision.
- The subscription deposits of domestic professional investors who took part were refunded in full, but the firm said specifics including the method for calculating losses, the amount of compensation and the timing remain under internal review.
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Mirae Asset Securities said it has formally apologized to South Korean individual and corporate professional investors who subscribed in advance for the US space company SpaceX and is reviewing financial compensation.
Kim Mi-seop and Hur Sun-ho, vice chairmen of Mirae Asset Securities, said in a text message sent June 15 that they were examining the detailed circumstances behind the decision, according to the financial investment industry on June 16. They added that the firm would promptly update clients on any additional findings and on measures to restore trust, including possible financial compensation.
The company said it proceeded with the subscription after being included as an underwriter in the US Securities and Exchange Commission's S-1 filing, giving it the qualifications needed to offer IPO subscription shares to domestic clients. It added that it did its best to secure an allocation until the last minute, but no shares were assigned after a final decision by the lead US underwriter.
The two vice chairmen said they were deeply sorry to clients who had subscribed in trust of Mirae Asset Securities. They also apologized again for having to deliver a disappointing result to investors who took part in the offering.
Mirae Asset had joined the global underwriting syndicate for SpaceX, which listed on US markets on June 12, but failed to secure any shares for sale in South Korea. The firm had planned to receive an allocation of several million shares and supply them to domestic institutional investors and asset managers. The plan collapsed after Goldman Sachs, the lead underwriter in the US, cut South Korea's allocation to zero shares. Subscription deposits paid by domestic professional investors were immediately refunded in full.
Details including how losses will be calculated, the amount of compensation and the timing have not yet been finalized. A Mirae Asset official said the matter remains under internal review. While exchange-rate swings are an unpredictable market risk, the review is intended to reflect the firm's responsibility for clients receiving not a single share, the official added.
Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com
Korea Economic Daily
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