Goldman Sachs' shifting allocation of SpaceX IPO shares

[Financial News] It has been confirmed that no shares were allocated to investors in the SpaceX Initial Public Offering (IPO) subscription handled by Mirae Asset Securities. This was because Goldman Sachs, the lead underwriter, did not assign any shares available for sale to Mirae Asset Securities in the final allocation process.
According to the investment banking industry on the 13th, Mirae Asset Securities participated in the SpaceX IPO underwriting syndicate and conducted a public offering subscription for domestic professional investors, but it failed to secure any shares to distribute to investors in the final allocation process.
As a result, the deposits paid during the subscription process were fully refunded in the early hours of the day, Korea time.
Earlier, Mirae Asset Securities carried out two rounds of SpaceX IPO subscriptions, and both offerings were sold out ahead of schedule. However, the actual share allocation was understood to depend on the lead underwriter's final decision.
Industry sources say the shares listed in the prospectus as underwriting volume and the shares actually available for sale are different concepts. Even if a securities firm is included in the underwriting syndicate and bears a certain underwriting obligation, the number of shares ultimately available to investors can vary depending on the lead underwriter's allocation decision.
The underwriting volume assigned to Mirae Asset Securities in SpaceX's securities registration statement was also said to reflect its participation ratio in the syndicate, rather than guarantee the final amount allocated to customers.
A securities industry official said, "In large IPOs, the lead underwriter sometimes readjusts the final allocation by taking into account institutional demand and the composition of investors by region," adding, "Being listed in the underwriting syndicate does not necessarily mean that investor allocation will be secured."
Another industry source said, "This case can be seen as one in which the lead underwriter's allocation authority played a major role as the offering drew stronger-than-expected demand," adding, "For domestic investors, it is disappointing that the allocation fell through after the subscription was completed, but procedurally it appears to have been carried out within the scope set out in the prospectus."
dschoi@fnnews.com Choi Du-seon Reporter