Financial Supervisory Service Launches Inspection into Mirae Asset over 'Zero SpaceX Share Allocation'

Review of Investor Protection and Conflict of Interest

The Financial Supervisory Service has launched an inspection regarding the failed allocation of SpaceX IPO shares by Mirae Asset Securities.

The Asia Business Daily DB

According to financial authorities on June 14, the Financial Supervisory Service switched its ongoing review of Mirae Asset Securities’ SpaceX IPO subscription sales process to a formal inspection last week. This move came after it was revealed the previous day that none of the SpaceX IPO shares had been allocated to the company, prompting authorities to investigate the circumstances.

According to the financial investment industry, Mirae Asset Securities was initially expected to be allocated 2,314,815 shares out of a total of 555,555,555 Class A common shares of SpaceX. However, it has been reported that Goldman Sachs, the lead underwriter, did not allocate any shares available for sale to Mirae Asset Securities during the final distribution process.

The Financial Supervisory Service plans to examine whether Mirae Asset Securities sufficiently informed investors about the risks of a potential allocation failure and whether the subsequent compensation and refund procedures were appropriate.

In addition, the inspection is expected to cover potential conflicts of interest. This comes after it was revealed that Mirae Asset Securities participated in the IPO subscription with its own capital, separate from client subscriptions, and received an allocation of shares.

Previously, Mirae Asset Securities refunded the entire subscription deposit paid by individual and corporate professional investors as well as institutional investors. However, it is reported that some investors may incur losses due to foreign exchange and remittance processes.

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