Krafton Fails in Subscription Boom... Deposit Amount 5 Trillion Won, Competition Rate 7.8 to 1

On the afternoon of the 2nd, the first day of the general subscription for the public offering of game company Krafton, investors are receiving consultations at a securities firm counter in Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] The general subscription for the game company Krafton's IPO closed with a deposit of 5 trillion won and a competition rate of about 7.8 to 1. Although it achieved the second-largest IPO ever with 4.0398 trillion won, it did not succeed in subscription popularity.

According to the lead underwriter Mirae Asset Securities on the 3rd, the total subscription deposit received by three securities firms was officially tallied at 5.0358 trillion won. Despite the possibility of multiple subscriptions through various securities firms, the deposit amount was far below other large IPOs that attracted tens of trillions of won.

It was less than one-tenth of SK IE Technology (80.9 trillion won) and SK Bioscience (63.6 trillion won), which allowed multiple subscriptions, as well as KakaoBank (58.3 trillion won), which prohibited multiple subscriptions. It also fell short of mid-to-large scale IPOs from last month such as SD Biosensor (31.9 trillion won) and HK Innoen (29 trillion won).

The final integrated competition rate was 7.79 to 1. This rate was much lower compared to KakaoBank (182.7 to 1), SKIET (288.2 to 1), and SK Bioscience (335.36 to 1). The competition rates by securities firms were 9.50 to 1 for Mirae Asset Securities, 6.88 to 1 for Samsung Securities, and 6.71 to 1 for NH Investment & Securities, none exceeding 10 to 1.

The total number of subscription cases across the three securities firms was 296,539. This was only 16% of KakaoBank’s subscription cases of 1,860,044, where multiple subscriptions were not allowed.

Due to the low subscription competition rate, it is expected that all Krafton subscribers will receive at least the minimum equal allocation quantity. Krafton also applies an equal allocation method, distributing half of the offering quantity equally to all subscribers. The equal allocation quantities per firm are approximately 480,000 shares for Mirae Asset, 430,000 shares for NH, and 390,000 shares for Samsung.

The subscription cases received by the three firms were 117,108, 94,363, and 80,568 respectively, all below the equal allocation quantities. Therefore, all subscribers who applied for at least the minimum unit of 10 shares will receive the equal allocation quantity. The expected equal allocation shares per subscription case, calculated by dividing the equal allocation quantity by the number of subscription cases, is about 4 shares for all three firms.

This content was produced with the assistance of AI translation services.