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Korea to Introduce Cornerstone Lockups to Curb Post-IPO Selloffs

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Korea to Introduce Cornerstone Lockups to Curb Post-IPO Selloffs South Korea’s top financial regulator will introduce a system for cornerstone investors in initial public offerings to curb sharp price drops after listings. The Financial Services Commission said institutions that commit to lockups of at least six months will be allowed share allocation in advance under the new system, which got government approval Tuesday. The rules take effect Nov. 13 alongside amendments to the capital...

Korea to Introduce Cornerstone Lockups to Curb Post-IPO Selloffs South Korea’s top financial regulator will introduce a system for cornerstone investors in initial public offerings to curb sharp price drops after listings. The Financial Services Commission said institutions that commit to lockups of at least six months will be allowed share allocation in advance under the new system, which got government approval Tuesday. The rules take effect Nov. 13 alongside amendments to the capital markets law.
Korea (LOCATION) Introduce Cornerstone Lockups (ORG) Curb Post-IPO (ORG) South Korea’s (LOCATION) The Financial Services Commission (ORG)
Originally published by Bloomberg Markets Read original →