Mirae Asset Securities Co., South Korea's largest brokerage, received no shares in SpaceX's (SPCX) record-breaking initial public offering. A communication error caused this exclusion. Mirae was the sole underwriter among 23 to miss the allocation.
The issue stemmed from a misunderstanding of the order submission process. The brokerage reportedly treated a preliminary request for investor interest as the final submission for binding orders. This error prevented over $1.1 billion in demand from Korean clients from entering the IPO order book.
Mirae Asset issued apologies to its clients. South Korea's financial regulators are now inspecting the firm. Regulators are reviewing the incident.