What role does the lead managing underwriter play?

A managing underwriter is a securities firm that oversees company analysis, share underwriting and subscription work to ensure the smooth issuance of securities, and in an IPO the lead managing underwriter has decision-making authority over matters such as allocating shares to subscribers.

Under Korea Financial Investment Association regulations, the lead manager agreement must cover verification and investigation of business results and financial soundness, financial and accounting guidance, consultation on listing requirements, checking of the entries in the securities registration statement, and checking of the largest shareholder's reputation, among other things. In principle, the lead manager agreement must be signed at least 2 months before applying for the preliminary listing review.