South Korea

South Korea’s IPO market is struggling to gain momentum, buffeted by a drop in the benchmark equity index and an increase in surveillance of listing hopefuls by the financial regulator. With the market expected to remain fragile, caution appears to be the way to go, writes Jonathan Breen.

Hanwha General Insurance’s failed attempt at a tier two dollar bond last week shows that not all South Korean credits can win over investors, as the buy-side looks at the country’s insurance borrowers with a lack of enthusiasm and a healthy dose of scepticism. With more Korean insurers set to hit the market, it’s time they reassess their approach to fundraisings.

Korea Housing Finance Corporation (KHFC) has mandated leads for its first covered bond secured on mortgages with a social cause. For the first time, the borrower is open to issuing in euros.

In a setback for South Korea’s insurance companies, Hanwha General Insurance was forced to pull its tier two dollar bond from the market on Thursday.

Two Samsung-linked units raised W927bn ($829m) from a sell-down in Samsung C&T Corp on Thursday, capping a flurry of overnight block trades from South Korea this week.

Two Samsung-linked units are selling down their remaining shares in Samsung C&T Corp through an accelerated block that could raise as much as $829m.

A private equity investor sold down its stake in South Korea’s Celltrion Healthcare on Tuesday evening to raise W401.3bn ($356.4m), with the shares so highly coveted that all orders had to be reined in aggressively.

Kakao Games, the gaming arm of South Korean internet conglomerate Kakao Corp, has pushed back its IPO until 2019 following a change in its priorities.

South Korean low-cost carrier Air Busan has filed preliminary documents with Korea’s stock exchange for the go-ahead to launch its IPO.

The Republic of Korea ended up with a peak order book of a whopping $9.5bn for its $1bn dual-tranche issuance on Thursday, as global market headwinds proved a boon.

South Korea’s Air Busan could launch an IPO of at least W100bn ($89m) by the end of the year, said a banker on the trade.

Korea Water Resources (K-Water) has issued a Sfr200m five year Swiss franc bond, confirming South Korea as the biggest source of foreign bond issuance in the currency.