Mirae Asset's 'Zero SpaceX Shares' Allocation Fallout... FSS Launches Immediate Probe

[Financial News] The Financial Supervisory Service (FSS) is said to have begun looking into the circumstances surrounding the complete cut in the SpaceX IPO shares that had been slated for Mirae Asset Securities.

According to Yonhap News Agency and others on the 14th, the FSS began an inspection of Mirae Asset Securities on the 5th over the sale of the SpaceX IPO subscription and later converted it into a formal investigation last week. Then, after the failed share allocation came to light the previous day, it immediately launched a probe into the circumstances.
According to the financial investment industry, SpaceX had initially planned to allocate 2,314,815 of the 555,555,555 Class A common shares it was selling this time to Mirae Asset Securities. However, Goldman Sachs, the lead underwriter, reportedly did not assign any saleable shares to Mirae Asset Securities and other underwriting consortium members in the final allocation process.
The FSS is now examining why Mirae Asset Securities did not receive any SpaceX IPO shares. It also plans to focus on investor protection issues, including whether the company sufficiently informed investors in advance about its future response and the risk that allocations to professional individual investors and Qualified Institutional Investors could fall through.
Mirae Asset failed to secure any actual shares in the final allocation process on the 12th, and the deposits paid by institutional investors during the subscription process were fully refunded in the early hours of the 13th. However, there are concerns that fund management plans at major domestic asset management companies that had hoped to build portfolios by receiving SpaceX IPO shares through Mirae Asset Securities could also be partially disrupted. There is also a possibility of losses during the currency exchange, remittance, and refund process for subscription deposits.

As authorities learned that Mirae Asset Securities reportedly participated in the subscription with its own proprietary funds, separate from customer subscriptions, and received an allocation of SpaceX IPO shares, some have raised conflict-of-interest concerns. The regulator said it will also look into that issue.
An FSS official said, "With major initial public offerings such as Anthropic and OpenAI still scheduled for the U.S. stock market, it is necessary to thoroughly determine the circumstances behind this SpaceX IPO allocation failure, which was the first step, in order to protect investors."
Earlier, on the 5th, the FSS began its inspection to determine whether Mirae Asset Securities properly complied with investor protection rules while selling the SpaceX IPO subscription to professional individual investors and Qualified Institutional Investors at the time.
bng@fnnews.com Kim Hee-sun Reporter