KB Securities grabs top spot in bond and equity issuance market

[Courtesy of KB Securities]

KB Securities Co., a traditional powerhouse in South Korea’s corporate bond issuance market, is emerging as a frontrunner in the equity issuance market for the first six-month period of this year. Thanks to its performance in orchestrating a series of capital increases in the initial public offering (IPO) market, KB Securities has secured the top spot in both the bond and stock issuance markets.

According to Ray The M, an investment banking news service provided by Maeil Business Newspaper, KB Securities has acted as the lead underwriter for a total transaction value of 475.7 billion won ($360.1 million) in the equity capital market (ECM) since the beginning of the year. The company has consistently built an impressive track record by underwriting successive IPOs for companies such as Lotte Chemical Corp., XAVIS Co., Daesung Private Equity Inc., SELVAS Healthcare Inc., SELVAS AI Inc., and KEC Holdings Co.

In the first half of the year, Samsung Securities Co. and Mirae Asset Securities Co. secured second and third positions, respectively, in the IPO market. Samsung Securities attracted attention by overseeing the listing of semiconductor substrate inspection company GigaVis Co., which had a value of 54.51 billion won based on the public offering price. This listing represented the largest IPO in the first half of the year and contributed to Samsung Securities’ total underwriting value of 366.2 billion won. Mirae Asset Securities maintained a strong position by overseeing the listings of companies such as Hanjoo Light Metal Co., Studio Mir Co., Truen Co., and MONITORAPP Co., with a cumulative value of 350.4 billion won in the first half of the year. The company closely trails Samsung Securities, demonstrating its competitive prowess in the market.

The IPO market in the second half of the year is expected to be greatly influenced by the listing results of large companies which are planning to join the stock markets, such as Seoul Guarantee Insurance Co., FADU Inc., and Doosan Robotics Inc. EcoPro Materials Co., whose preliminary listing review has been delayed, and LG CNS Co., which is considering applying for preliminary approval, are also considered potential large IPOs worth hundreds of billions of won.

KB Securities also took the top spot in the debt capital market (DCM). KB Securities and NH Investment & Securities Co. ranked first and second in the market. KB Securities managed 19.62 trillion worth of corporate bond issuance, including credit bonds and asset-backed securities, in the first half of this year, while NH Investment & Securities handled 17.67 trillion won worth of bond issuance during the same period.

KB Securities and NH Investment & Securities participated in almost all debt issuances ranging in size from hundreds of billions of won to trillions of won, including those of KT Corp, POSCO, LG Chem Ltd., and LG Energy Solution Ltd. Until the first quarter, the ranking of the two companies was close, with NH Investment & Securities and KB Securities holding the first and second positions, with a difference of about 1 trillion won in underwriting amounts.

Shinhan Investment & Securities Co. also showed remarkable growth. The company had not been ranked within the top five in terms of bond issuance underwriting performance for several years. However, in the first half of the year, it took charge of 5.89 trillion won worth of corporate bond issuance.

SK Securities Co., which is classified as a mid-sized company by capitalization, still ranked among the top underwriters despite the competition from large companies. It has been on the list of underwriters for corporate bonds issued by SK Group companies, even after being excluded from SK Group. SK Group is considered a major player in the fundraising market, with SK hynix Inc. alone issuing as much as 1.39 trillion won, the largest single issuance in the first half of the year.