[Asia Economy Reporter Eunmo Koo] Among the 10 companies listed on the domestic stock market in the second half of this year, the stock prices of 7 companies rose above their initial public offering (IPO) prices.
According to the Korea Exchange on the 9th, among the 25 stocks listed in the second half of this year on the KOSPI market (6 companies) and the KOSDAQ market (19 companies) (excluding re-listings and SPACs), 17 stocks, accounting for 68%, recorded stock prices higher than their IPO prices based on the previous day's closing price.
However, the performance varies by market. On the KOSPI market, except for SK Biopharm, all other stocks traded below their IPO prices. A total of 6 stocks were newly listed on the KOSPI market in the second half of the year, of which 5, excluding SK Biopharm, were all REITs (Real Estate Investment Trusts). SK Biopharm, which was listed in July, created the new term "ttasang" (meaning the opening price was set at twice the IPO price and then hit the upper limit on the first day of listing), achieving a high return of 283.7%. However, the other REIT stocks such as Aegis Value REIT (-10.8%), Aegis Residence REIT (-9.5%), and Koramco Energy REIT (-6.1%) all traded below their IPO prices.
The increased volatility in stock prices led investors to avoid relatively stable IPO REITs. Researcher Kyungja Lee from Samsung Securities explained, "Massive liquidity flowed into new growth industries, causing income-type assets like REITs to be neglected. Many REIT listings were delayed due to COVID-19 and only debuted on the stock market in June. The underlying assets they hold had the weakness of not reflecting the socio-structural changes accelerated by COVID-19."
On the other hand, newcomers to the KOSDAQ market are showing good performance. Among the 19 companies that entered the KOSDAQ market in the second half, 16 recorded stock prices higher than their IPO prices. Genolution (131.4%) and Hankook Pharma (116.1%) posted triple-digit returns, while E&Di (95.8%), Apro (80.1%), Iruda (65.6%), Younglimwon Soft Lab (62.6%), and Withus Pharmaceutical (59.1%) also achieved returns exceeding 50% compared to their IPO prices.
This is attributed to the overall increased interest and expectations in the IPO market, driven by the success of SK Biopharm despite the resurgence of COVID-19. Researcher Jongseon Park from Eugene Investment & Securities analyzed, "The successful listing of SK Biopharm in early July raised expectations for the IPO market, and the profitability of IPO-related funds has been good, expanding interest among institutional and retail investors."
High interest in newly listed stocks is expected to continue for the time being. Kakao Games, which attracted a subscription frenzy by raising 58 trillion won in deposits, will be listed on the KOSDAQ market on the 10th, and Big Hit Entertainment, home to BTS, is scheduled to be listed next month. Additionally, subscription payments refunded from Kakao Games and others are expected to flow into other companies' IPO subscriptions or stock purchases, suggesting that the liquidity-driven market trend will persist for some time.
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