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Involvement in the IPO was anticipated to elevate Mirae into the global elite, but instead, South Korea's biggest broker had to apologize to clients and deal with examination from local authorities.
As per Bloomberg sources, the issue arose from a miscommunication concerning the order submission procedure for the SpaceX IPO.
In mid-May, weeks prior to the start of book building, the IPO coordinators emailed underwriters requesting them to provide investor interest. The findings were gathered in a digital data room, which is customary for major transactions.
Mirae replied to this request, thinking it had completed its clients' orders. However, from the viewpoint of the Wall Street banks overseeing the transaction, these replies were simply indications of interest, not official requests to take part in the IPO. The actual applications were submitted in June after a distinct email from the organizers, as is typical for such opportunities. Consequently, the New York banks believed Mirae had not placed any orders and, as a result, did not distribute any shares, sources indicated.
The broker assured that they would look into the issue and implement actions to "rebuild consumer trust."
Mirae was an initial investor in Elon Musk's firm, allowing it to be among the scarce foreign underwriters of the IPO. The Financial Supervisory Service (FSS) of South Korea has initiated an inquiry into the matter.
source: bloomberg.com
As per Bloomberg sources, the issue arose from a miscommunication concerning the order submission procedure for the SpaceX IPO.
In mid-May, weeks prior to the start of book building, the IPO coordinators emailed underwriters requesting them to provide investor interest. The findings were gathered in a digital data room, which is customary for major transactions.
Mirae replied to this request, thinking it had completed its clients' orders. However, from the viewpoint of the Wall Street banks overseeing the transaction, these replies were simply indications of interest, not official requests to take part in the IPO. The actual applications were submitted in June after a distinct email from the organizers, as is typical for such opportunities. Consequently, the New York banks believed Mirae had not placed any orders and, as a result, did not distribute any shares, sources indicated.
The broker assured that they would look into the issue and implement actions to "rebuild consumer trust."
Mirae was an initial investor in Elon Musk's firm, allowing it to be among the scarce foreign underwriters of the IPO. The Financial Supervisory Service (FSS) of South Korea has initiated an inquiry into the matter.
source: bloomberg.com
