NH Investment & Securities Co. retained its lead in South Korea’s equity capital market (ECM) in the first half, riding a surge in large-scale rights offerings while initial public offerings (IPOs) remained subdued.
According to data compiled by The Korea Economic Daily’s capital market news outlet Market Insight and Seoul-based financial data provider FnGuide Inc., NH Investment clinched the top spot in the ECM league table with 896.4 billion won ($646 million) in bookrunning volume across eight deals.
The standout transaction was Samsung SDI Co.’s 1.65 trillion won rights offering, the country’s largest equity raise in the second quarter, where NH participated as a joint bookrunner.
NH also steered the 282.5 billion won rights issue for ISU Petasys Co. and the IPO of chip equipment parts maker Wonil TNI, consolidating its dominance in the ECM market.
KB Securities Co., which led the ECM rankings in the first quarter, fell to second place with 784.5 billion won from nine mandates. It too had a stake in the Samsung SDI transaction but added little in new deals during the second quarter, managing only the 25.1 billion won IPO of Coreline Soft Co.
Korea Investment & Securities Co. followed in third, running 618.8 billion won worth of eight ECM deals, including Samsung SDI and two smaller IPOs – immune therapy biotech ImmuneOncia and organoid researcher OrganoidSciences.
Other major players included Mirae Asset Securities Co., which handled nine deals worth 581.6 billion won, followed by Shinhan Investment Corp. with 353.7 billion won across two deals. Both were also involved in the Samsung SDI rights offering.
Total fundraising in the ECM market reached 4.4 trillion won in the first half, up 8.2% from the year-earlier period.
IPO MARKET: COOLED BUT LG CNS LIFTS TOTALS
KB Securities retained leadership in IPO bookrunning, overseeing 318.7 billion won in four deals, though its second-quarter activity stalled.
Mirae Asset made gains with eight mandates worth 250.6 billion won, including listings for skincare brand d’Alba Global, valued at 43.4 billion won, and biotech firm IntoCell, valued at 25.5 billion won.
Morgan Stanley and BoA Merrill Lynch followed with deals of 245.7 billion won each. Korea Investment and Securities ranks fifth with 176.6 billion won in six deals.
The IPO market raised a total of 1.74 trillion won in the first half, a 10.5% on-year increase, thanks largely to LG CNS Co.’s 1.2 trillion won listing – the biggest IPO in three years.
With the IPO pipeline still quiet, ECM league table dynamics in the second half are expected to hinge on rights offerings, analysts said.
Two landmark transactions loom: Hanwha Aerospace Co.’s planned 2.92 trillion won offering and a 1.1 trillion won raise by battery material maker POSCO Future M Co.
NH Investment and Korea Investment are lead bookrunners of the Hanwha deal, while the POSCO deal will be run by a consortium of Korea Investment, NH, KB Securities and Kiwoom Securities Co.
ACQUISITION FINANCE: KB KOOKMIN BANK SURGES TO 1ST PLACE
In the M&A financing space, KB Kookmin Bank vaulted to the top of the second-quarter league table, arranging 2.94 trillion won in acquisition financing and refinancings.
The leap was powered by its lead role in the 1.7 trillion won refinancing of SK Shieldus, one of the quarter’s largest transactions.
The bank also arranged refinancings in eight cases, including 369.4 billion won for Ssangyong C&E, 212 billion won. KB also backed Hahn & Co.’s 212 billion won buyout of SK Specialty.
Korea Investment ranked second with 2.73 trillion won across 13 deals – the highest deal count.
Notable mandates included the refinancing of Korean Air Lines Co.’s C&D Services with 535 billion won and AirFirst’s 487.5 billion won, as well as a joint role in the SK Shieldus refinancing.
NH Investment, long seen as a powerhouse in structured finance, came third with 2.54 trillion won across 12 deals, including lead roles in Korean Air’s C&D Services and SK Specialty deals.
KB Securities secured fourth place with just four deals but a hefty 1.74 trillion won in value, mainly from refinancings for SK Shieldus with 926 billion won and Koentec with 355 billion won. It also arranged financing for Australian private equity firm Pacific Equity Partners’ acquisition of FMH Group in Australia.
Total M&A loan volume surged 37% on-year to 15.8 trillion won in the second quarter, reflecting the impact of Korea’s pivot to monetary easing and a rush to refinance large deals amid lower interest rates.
LEGAL ADVISORY: KIM & CHANG RECLAIMS TOP M&A SPOT
Korea’s largest law firm Kim & Chang returned to the top of the M&A legal advisory table in the first half, rebounding from a fifth-place finish in the first quarter.
The firm advised on 19 deals worth 6.1 trillion won, including a 1.4 trillion won sale of LG Chem Ltd.’s water filter business to Glenwood PE and VIG Partners’ 887.9 billion won exit from funeral services firm Preedlife.
It also advised Krafton Inc. on its 700 billion won acquisition of Japan’s ADK Holdings, bolstering its tally of cross-border and private equity-related deals.
Law firm Shin & Kim, also known as Sejong, climbed to second with 31 mandates totaling 4.86 trillion won, including the 600 billion won sale of apparel firm Seorin Company to Goodai Global and the 470 billion won divestment of Asiana Airlines Inc.’s cargo unit to Air Incheon.
Lee & Ko, also known as Gwangjang, was close behind with 25 deals worth 4.84 trillion won, acting as LG Chem’s counsel in the Glenwood deal and advising on the 521 billion won sale of medical device firm ViOL.
Yulchon, the surprise leader in the first quarter, slipped to fourth with 3.91 trillion won in deal volume, while Bae, Kim & Lee, also known as Taepyungyang, rounded out the top five with 3.5 trillion won.
Among smaller firms, Yoon & Yang, also known as Hwawoo, secured sixth place by advising on multiple transactions, including the sale of Kyobo Life Insurance’s minority stake to SBI Holdings and the divestment of controlling stakes in Ourhome and T’way Holdings.
Emerging boutique LAB Partners made its mark advising Kyobo on its strategic divestiture.
By Seok-Cheol Choi, Da-Eun Choi and Jun-Ho Cha
dolsoi@hankyung.com
In-Soo Nam edited this article.
