Mirae Asset Securities considers compensation over failed SpaceX share allocation

The headquarters of Mirae Asset Group, the parent company of Mirae Asset Securities, in downtown Seoul / Courtesy of Mirae Asset Securities

Mirae Asset Securities has officially apologized to domestic investors who participated in pre-subscription for SpaceX shares, and said it is considering monetary compensation.

According to sources, Mirae Asset Securities Vice Chairmen Kim Mi-seob and Heo Sun-ho sent messages to investors Monday, explaining that the company proceeded with the subscription process after meeting all legal qualifications and requirements to offer IPO shares to domestic clients. Mirae Asset Securities was listed as an underwriter in the U.S. Securities and Exchange Commission's Form S-1 filing.

“We made every effort to secure an allocation until the very end, but due to the final decision made at the discretion of the lead U.S. underwriter, no shares were allocated,” the message read.

“We once again offer our deepest apologies for having to deliver such a disappointing outcome to the customers who participated in this subscription,” it added.

Mirae Asset Securities had participated as a global co-underwriter for SpaceX, which was listed on the U.S. stock market Friday. The brokerage had initially planned to receive 2.31 million shares out of the 555.6 million common shares sold in the offering and supply them to domestic institutional investors, asset management firms and individual and corporate professional investors.

However, the plan fell through after Goldman Sachs, the lead U.S. underwriter, abruptly cut Korea’s entire allocation to zero. Subscription deposits paid by domestic investors were fully refunded early Saturday.

The Financial Supervisory Service said it plans to examine the brokerage without setting a fixed deadline and will look into the entire process that led to the failed IPO share allocation.

The brokerage said it is looking into the detailed circumstances behind the decision and will promptly provide further information after reviewing measures to restore customer trust, including any additional findings and possible monetary compensation.