Industry watchers said deposits at local securities companies’ cash management accounts tend to go up ahead of a high-profile IPO. (Yonhap)
SEOUL, Aug. 31 (Korea Bizwire) — Deposits in South Korean cash management accounts have surged nearly 20 percent this year to reach a fresh record high, industry sources said Monday.
The net asset value of cash management accounts offered by local brokerage houses reached 60.4 trillion won (US$51.1 billion) as of Thursday, up from 51.8 trillion won at the start of the year.
The amount is also up from 56.1 trillion won from end-July and marks the first time that outstanding deposits at cash management accounts have passed the 60 trillion-won level.
A cash management account refers to a type of account that allows an account holder to trade equities while earning interest on cash balances.
The new record comes as South Korean gaming company Kakao Games Corp. started to receive applications for new shares from investors Tuesday as part of an initial public offering (IPO) set for next month.
The game affiliate of Kakao Corp., which operates the country’s most-used mobile messenger KakaoTalk, plans to issue 16 million new common shares to raise between 320 billion won and 384 billion won that will be used in developing a lineup of new games.
Industry watchers said deposits at local securities companies’ cash management accounts tend to go up ahead of a high-profile IPO.
Kakao Games plans to receive bids for its new shares, which are expected to be more than 1,000 times oversubscribed.
Deposits at cash management accounts had been on a steady rise this year with the outstanding amount soaring to 57.5 trillion won in June ahead of an IPO by SK Biopharmaceuticals Co., which sparked a subscription craze among retail investors.
(Yonhap)
