Kosdaq Companies Gaining Popularity in the IPO Market

[Asia Economy Reporter Oh Ju-yeon] Kosdaq-listed companies are attracting attention in this year's initial public offering (IPO) market as well.

According to financial information firm FnGuide on the 17th, among the 16 newly listed stocks (excluding SPACs, transfers, and REITs) since the beginning of this year, 14 stocks have outperformed their offering price in terms of returns. The average stock price increase compared to the offering price for these 16 stocks was 79.06% based on the closing price on the 16th. Excluding the two stocks with returns below the offering price (-5%, -13%), the return rate is 91.70%. Among these 16 companies, 15 are listed on the Kosdaq market. Their stock prices have steadily risen since listing, driving up the Kosdaq index.

APRO, a secondary battery equipment manufacturer that was listed on the Kosdaq market the previous day, recorded a sharp rise from the first day. The offering price was set at the top of the desired band at 21,600 KRW, and the opening price on the day was formed at twice that amount, 43,200 KRW. APRO closed its first day at 56,100 KRW, up 29.86%, soaring 159.72% compared to the offering price.

SomaGen, also a Kosdaq-listed company, hit the upper price limit for two consecutive trading days after its listing on the 13th. On the third trading day, it surged up to 26% intraday, with the offering price of 11,000 KRW more than doubling to 24,700 KRW. Display equipment company LIT, which was listed at the end of last month, also recorded two consecutive upper price limit days after listing. Although the offering price was 7,800 KRW, it rose nearly fourfold to 28,000 KRW intraday on the third trading day.

Because of this, subscription to public offerings is called a "lottery." E&Di, an environmental improvement catalyst and secondary battery material developer preparing for Kosdaq listing at the end of this month, exceeded a competition rate of 1000 to 1 in the demand forecast for institutional investors conducted the previous day. The offering price was set at the upper limit of the desired band price (12,350 KRW to 14,400 KRW), at 14,400 KRW. Other companies planning Kosdaq listings this month, such as Genolution (24th), Saltlux (23rd), and TSI (22nd), recorded competition rates of 894.67 to 1, 953.53 to 1, and 1621.10 to 1, respectively, in their general public subscription.

Several companies are lined up for Kosdaq listings in the second half of the year. Nine companies including Senko, SoluM, Anywon, and Nextin have submitted review applications this month, and recently, Kakao Games, which has attracted significant interest, also joined. Kakao Games filed a preliminary review for a Kosdaq IPO with the Korea Exchange on the 12th of last month. Kakao Games' corporate value is expected to exceed 2 trillion KRW.