Mirae Asset Securities announced on the 6th that it is actively reviewing a plan to pay 10% annual interest to individual investors whose funds were locked following the cancellation of the SpaceX initial public offering subscription. The compensation amount is estimated at approximately 1.42 billion won. The subscription failure occurred after lead underwriter Goldman Sachs did not deliver allocable shares to Mirae Asset Securities, despite the $500 million individual professional investor allocation selling out within 1-2 minutes during the subscription period from the 5th to 10th of last month. The Financial Supervisory Service has launched an inspection into Mirae Asset Securities over the incident, with regulators seeking to determine whether communication issues with the lead underwriter or other factors caused the allocation failure.
Mirae Asset Calculates 1.42 Billion Won Compensation Based on Fund Lock Period
Mirae Asset Securities is applying a 10% annual interest rate to calculate compensation for the period investor funds remained locked. The interest calculation method follows a precedent set by cryptocurrency exchange Bybit in a similar case. Based on individual professional investor deposits, $300 million submitted on the 5th of June was locked for 8 days until the refund date of the 13th, while $200 million submitted on the 8th of June was locked for 5 days. Applying the 10% annual rate on a pro-rata basis yields $657,534 for the $300 million portion and $273,973 for the $200 million portion. The total of $931,507 converts to approximately 1.42036 billion won at the refund-date exchange rate of 1,524.8 won per dollar. A Mirae Asset Securities representative stated, "We sincerely apologize for the inconvenience caused to customers who waited for subscription results. We will do our best to protect investors and provide stable services."
Goldman Sachs Failed to Deliver SpaceX Shares Despite Completed Subscription
Mirae Asset Securities conducted the SpaceX IPO subscription from the 5th to 10th of last month, targeting individuals and corporations registered as professional investors. The total募集 amount was $1.14 billion, with $500 million allocated to individual professional investors. The individual allocation sold out within 1-2 minutes of sales opening. However, lead underwriter Goldman Sachs did not deliver allocable shares to Mirae Asset Securities during the final allocation process, causing the subscription to be cancelled. Mirae Asset Securities issued full refunds of subscription deposits in the early morning of the 13th of last month.
Financial Supervisory Service Launches Inspection into Mirae Asset Securities
The Financial Supervisory Service has initiated an inspection of Mirae Asset Securities over the incident. FSS Governor Lee Chan-jin stated at a recent press conference, "We never imagined such a situation would occur," adding that the inspection will determine whether the issue stemmed from communication problems with the lead underwriter or other factors.
Mirae Asset Considers Legal Action Against Bloomberg and Lead Underwriter
Mirae Asset Securities is leaving open the possibility of legal action if it determines unfair treatment occurred in the allocation failure process. The firm also plans to pursue legal responsibility against Bloomberg, which reported that Mirae Asset misunderstood the order submission process and consequently failed to submit actual orders, resulting in receiving zero SpaceX shares.
FAQ
What compensation is Mirae Asset Securities paying for the failed SpaceX IPO subscription?
Mirae Asset Securities announced on the 6th that it is reviewing a plan to pay 10% annual interest to individual investors whose funds were locked due to the cancelled SpaceX IPO subscription. The compensation amount is estimated at approximately 1.42 billion won, calculated based on the period funds remained locked between deposit dates (the 5th and 8th of June) and the refund date (the 13th).
Why did the SpaceX IPO subscription through Mirae Asset Securities fail?
The subscription failed because lead underwriter Goldman Sachs did not deliver allocable shares to Mirae Asset Securities during the final allocation process, despite the $500 million individual professional investor allocation selling out within 1-2 minutes. Mirae Asset Securities issued full refunds on the 13th of last month and is now under inspection by the Financial Supervisory Service to determine the cause of the allocation failure.
