Mirae Asset Denies Error in SpaceX IPO Allocation, Claims Proper Procedures Followed

Bloomberg reported that South Korean retail investors were not allocated any shares in the SpaceX initial public offering (IPO) on the U.S. Nasdaq due to a misunderstanding regarding the order submission process, which resulted in 1.1 billion dollars, or approximately 1.7 trillion won, in subscription demand from Korean investors failing to be processed as actual orders.
The media outlet reported on June 30 (local time), citing sources familiar with the matter, that the lead underwriters for the SpaceX IPO sent emails to about 20 syndicate members in mid-May requesting information on investor demand for SpaceX public offering shares.
Citing some sources familiar with the situation at Mirae Asset Securities, the report stated that Mirae Asset believed it had submitted subscription orders for its clients while responding to this request.
In contrast, the lead underwriters reportedly viewed Mirae Asset's response as a mere indication of interest rather than an official order.
As a result, the sources said that 1.1 billion dollars in demand from Korean investors was not entered as an order.
Bloomberg reported that actual orders were entered in June, following a separate email sent by the lead underwriters in accordance with Wall Street practices for large-scale IPOs.
The report stated that the lead underwriters on Wall Street determined that Mirae Asset had not submitted a single order for retail investor allocation, and consequently, did not allocate any shares to the firm.
In response, Mirae Asset Securities refuted the claims, stating, "We applied for 1.14 billion dollars collected through domestic subscription procedures in accordance with the procedures and systems guided by the lead underwriters in June, and we received official confirmation from the lead underwriters regarding this."
The firm added, "We cannot overlook reports that slander our company through unidentified sources," and stated that it is "reviewing legal action."
Mirae Asset Securities, which participated as a member of the joint underwriting syndicate along with about 20 other major global financial firms, had initially been expected to underwrite 2.31 million shares of SpaceX Class A common stock.
SpaceX, which was listed on the Nasdaq on the 12th, closed its first day of trading at 161.11 dollars, up 19 percent from its IPO price.
Through this listing, SpaceX raised a total of 85.7 billion dollars, or approximately 133 trillion won, the largest amount in history.
The Financial Supervisory Service (FSS) is currently conducting an inspection of Mirae Asset Securities regarding this incident.
The FSS plans to investigate the entire process leading to the failure of the share allocation, with a focus on investor protection.
(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.