Financial Supervisory Service Investigates SpaceX IPO Allocation Controversy

 
The Financial Supervisory Service (FSS) is investigating the circumstances surrounding the failed domestic subscription for SpaceX's initial public offering (IPO) by Mirae Asset Securities. Although Mirae Asset attempted to conduct the subscription for domestic investors, it ultimately did not secure any shares in the public offering, prompting a review of investor protection procedures and prior notifications.
 
According to the financial investment industry on June 14, the FSS has been examining the sales process of Mirae Asset's SpaceX IPO subscription since June 8. Initially, the review focused on the public offering sales procedures and investor protection systems. However, following the failure to secure any shares during the final allocation process, the FSS is expected to investigate the related circumstances and the investor notification process as well.
 
Earlier, Mirae Asset began accepting subscriptions for SpaceX's IPO from individual and institutional professional investors on June 5 and June 8. The total amount planned for the offering was $500 million. Based on the subscriptions, Mirae Asset intended to supply 2,314,815 shares of SpaceX Class A common stock to domestic institutional investors, with an estimated value of approximately $312.5 million (about 4.7 trillion won) based on an offering price of $135.
 
However, it has been reported that Mirae Asset did not secure any shares available for sale during the final allocation process. As a result, the deposits from participating investors were fully refunded.
 
Market analysts suggest that, regardless of any legal issues, this incident could significantly impact Mirae Asset's reputation, especially since the SpaceX subscription has been conducted almost exclusively in South Korea.
 
This situation has also affected domestic asset management firms that were planning to include SpaceX shares. Korea Investment Trust Management had intended to incorporate the SpaceX stock into its 'ACE U.S. Space Technology Active ETF' through Mirae Asset. Similarly, Mirae Asset Management had planned to include the stock in some active ETFs, but the failure to secure shares has made it necessary to revise their strategies.