Stock issuance in S.Korea triples in Nov. on Samsung bio unit's IPO

Stocks issued in South Korea last month more than tripled compared with the previous month as the biopharmaceutical unit of Samsung Group, the country's largest family-run conglomerate, made a debut in local bourse, financial watchdog data showed on Thursday.

Stock issuance reached 3.4 trillion won (2.84 billion U.S. dollars) in November, up 218.3 percent from the prior month, according to the Financial Supervisory Service (FSS).

The surge was attributable to a mega initial public offering (IPO) of Samsung Biologics, the contract manufacturer of biologic drugs affiliated with Samsung Group.

The IPO of Samsung Biologics raised funds worth 1.5 trillion won, while Samsung Heavy Industries, one of the country's top three shipbuilders, offered stock rights to raise 1.14 trillion won.

Meanwhile, corporate bond issuance amounted to 8.69 trillion won in November, down 2.04 trillion won from a month earlier.

Bonds floated by industrial companies tumbled 43.7 percent over the month to 1.69 trillion won in November amid growing uncertainties caused by political unrest.

Sentiment among consumers and businesses worsened as the presidential impeachment increased economic uncertainties in the absence of control tower, leading to weaker private consumption and facility investment.

Financial institutions issued 5.08 trillion won in bonds in November, down 15.3 percent from the previous month. But, the asset-backed securities (ABS) sales increased 10.8 percent to 1.93 trillion won. Enditem