South Korea FSS Investigates Mirae Asset Over $500 Million Failed SpaceX IPO Allocation
Updated
Updated · Reuters · Jun 15
South Korea FSS Investigates Mirae Asset Over $500 Million Failed SpaceX IPO Allocation
3 articles · Updated · Reuters · Jun 15
Summary
Mirae Asset apologized to clients and said it may consider financial compensation after receiving no SpaceX IPO shares despite collecting about $500 million in subscription deposits earlier this month.
The brokerage told investors a U.S. lead underwriter made the final discretionary decision to exclude Mirae Asset from the allocation, even though it was qualified to offer the shares in Korea.
Yonhap said the Financial Supervisory Service is examining how the allocation failure happened and whether Mirae Asset adequately warned investors that the deal could collapse.
Some investors still incurred dollar-conversion costs and exchange-rate losses, while SpaceX's Friday debut pushed its valuation above $2 trillion and intensified scrutiny of the failed sale.