IPO shares can be subscribed by institutions before the registration statement — effective 13 November 2026 | pre-allocated shares locked up six months
From 13 November 2026, for shares being listed for the first time, an issuer may gauge demand and take advance subscriptions for part of the offering from professional investors designated by Presidential Decree before filing the securities registration statement. Shares received through advance subscription must be locked up for at least six months. The cap on the quantity that may be pre-allocated is set by Presidential Decree.
Conditions used in the video
- Effective date
- 2026-11-13
- Promulgated
- 2026-05-12
- Basis
- Financial Investment Services and Capital Markets Act Articles 119-3, 119-4 and 119-5 (new)
- Securities covered
- shares before listing
- Counterparties
- professional investors designated by Presidential Decree by reference to asset size
- Pre-allocated shares
- locked up for at least six months after acquisition
Results
- Now
- solicitation only after the registration statement is filed
- From 2026-11-13
- demand gauged and part subscribed before the statement
- Lock-up
- at least six months
- Quantity cap
- Presidential Decree
- Duties
- conflict-of-interest system · record of information recipients
- Retail investors
- subscription procedure unchanged
Why it works this way
Today, subscriptions may be solicited only after the securities registration statement is filed with the Financial Services Commission. Institutional book-building and public subscription both happen after the filing, and promising an allocation to particular investors before it was not allowed.
Capital Markets Act Articles 119-3 and 119-4 (effective 2026-11-13).
- Shares before listingbefore the registration statement is filed
- Professional investorsdemand gauged · part of the offering subscribed in advance
- Lock-upat least six months after acquisition
The cap on the quantity that may be pre-allocated is set by Presidential Decree.
Whoever takes advance subscriptions must have a system to prevent conflicts of interest and keep a record of the counterparties that received information. Counterparties are limited to professional investors designated by decree by reference to asset size.
Not the procedure, but the available quantity and when shares can come to market.
- Subscription procedureunchanged
- Quantitypart may be allocated in advance, before the statement
- Timing of salespre-allocated shares cannot be sold until six months after listing
When locked-up shares may come to market is the new thing to watch.
This video and page describe a measure that has been promulgated but has not taken effect. Details may change through a decree or notice.
In short, from 13 November 2026 professional investors may subscribe to IPO shares before the registration statement and their allocation is locked for six months. The retail subscription procedure stays the same.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Capital Markets Act Articles 119-3 and 119-4 (Gauging demand and advance subscription before the registration statement)
In force Effective 2026-11-13 (promulgated 2026-05-12; Addenda)
For public offerings of shares before listing only, an issuer may, before filing the securities registration statement, gauge demand from professional investors designated by Presidential Decree and take subscriptions within the quantity set by decree. Shares acquired through advance subscription are locked up for at least six months.
What this means
A path opens to sell to institutions first, and that allocation is tied up for half a year. The retail quantity and post-listing supply timing change.
Capital Markets Act Article 119-5 (Prevention of conflicts of interest)
In force Effective 2026-11-13
A person taking advance subscriptions must maintain a conflict-of-interest prevention system and record and manage the list of counterparties that received information.
What this means
A record remains of who was told first. Information advantage comes inside the regulation.
Run it on your own numbers
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Frequently asked
Can retail investors subscribe in advance?
No. Counterparties are professional investors designated by Presidential Decree by reference to asset size. The retail subscription procedure itself does not change.
Can pre-allocated shares be sold right after listing?
No. They must be locked up for at least six months after acquisition.
How much of the offering can be pre-allocated?
The quantity cap is set by Presidential Decree. The ratio will be known once the decree is issued.
From which listings does it apply?
Advance allocation may appear in listings prepared after the effective date, 13 November 2026.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.