IPO Launches Amid Stock Market Recovery... Big Hit and SK Biopharm Giants Prepare for Listing

36 Companies Filed Preliminary Review Requests for KOSPI and KOSDAQ Markets in April-May

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[Asia Economy Reporter Kum Boryeong] As the domestic stock market, which had plummeted due to the impact of the novel coronavirus infection (COVID-19), shows signs of recovery, the initial public offering (IPO) market is also reviving.

According to the Korea Exchange on the 3rd, a total of 36 companies, excluding SPACs, filed preliminary listing reviews for the KOSPI and KOSDAQ markets over the two months of April and May. This is more than three times the 10 companies that filed in February and March.

The KOSPI index had fallen to the 1400 level in March, raising concerns in the market, but on this day it soared past the 2100 level. As the market showed an upward trend, large IPO candidates continue to emerge in the KOSPI market. Big Hit Entertainment, home to BTS (Bangtan Sonyeondan), submitted its preliminary listing review application to the Korea Exchange on the 28th of last month. According to Hana Financial Investment, Big Hit Entertainment's estimated corporate value is between 3.9 trillion and 5.2 trillion KRW.

In addition, Kyochon F&B, famous for Kyochon Chicken, and biosimilar company Prestige BioPharma are pursuing listings on the KOSPI market. SK Biopharm, considered the largest IPO candidate this year, submitted its securities registration statement last month and confirmed its public offering for the first half of the year.

On the KOSDAQ market, companies from various industries such as Ivy Kim Young, Daumsoft, Korea Pharma, ABKO, IDP, and Brand X Corporation have also moved forward with listings.

Companies that were waiting for the right timing to list during the domestic stock market plunge are now busy preparing for their listings. Companies that have received preliminary listing review approval must list within six months. Because of this, IR consulting firms that assist companies with listings have also become busy. A total of nine companies have confirmed press conferences for IPOs through the third week of this month.

An official from an IR consulting firm explained, "Until April, companies were worried that it might be difficult to properly evaluate their corporate value due to the impact of COVID-19, but as the market kept showing green lights, they are now proceeding with all their schedules," adding, "The review process was a bit slow but has recently accelerated rapidly." He added, "There have been consecutive cases where press conferences for two companies overlap on the same day."