Rapidly Growing IPO Giants Enter Major Indices One After Another

SK Biopharm Early Inclusion in KOSPI 200
Kakao Games Also Expected in KOSDAQ 150

[Asia Economy Reporter Song Hwajeong] This year’s major IPOs that have heated up the IPO market are establishing themselves as market leaders even after listing, with early inclusion in key indices.

According to the securities industry on the 24th, following SK Biopharm’s early inclusion in the KOSPI 200 index on the 11th, Kakao Games is expected to be early included in the KOSDAQ 150 index during the December regular revision. Big Hit Entertainment (Big Hit), scheduled to be listed on the KOSPI next month, is also highly likely to enter the KOSPI 200 during the December regular revision.

Under the special inclusion rule for KOSPI 200, if the average daily market capitalization during the first 15 trading days after listing ranks within the top 50 of the KOSPI market (common stocks basis), the stock can be specially included on the day following the earliest KOSPI 200 futures expiration date. Big Hit submitted its securities registration statement for KOSPI listing on the 2nd, and is conducting a demand forecast for institutional investors from today until tomorrow, followed by a general subscription on the 5th and 6th of next month. The offering price range was set at 105,000 to 135,000 KRW.

Jeon Gyun, a researcher at Samsung Securities, said, “Considering the existing issued shares of 26,716,000 and the public offering shares of 7,130,000, Big Hit’s market capitalization based on the offering price is estimated to be between 3.5 trillion and 4.5 trillion KRW. If the stock price reaches 150,000 KRW, the market cap would exceed 5 trillion KRW, likely placing it within the top 50 of the KOSPI market cap rankings, making special inclusion possible.” If Big Hit’s offering price is set at the upper end of the range, 135,000 KRW, and it achieves ‘ttasang’ (opening at twice the offering price and hitting the upper limit on the first day of listing), the stock price would soar to 351,000 KRW. In this case, the market cap would exceed 12 trillion KRW, surpassing Samsung Life Insurance (11.9 trillion KRW, ranked 29th) based on the previous day’s closing price.

Earlier, SK Biopharm, which was listed in July, met the special inclusion criteria by ranking 26th in KOSPI market capitalization on its first day of listing and settling within the top 30, leading to its inclusion in the KOSPI 200 index from the 11th of this month.

Kakao Games is also expected to be specially included in the KOSDAQ 150 index by the end of the year. Although the KOSDAQ 150 does not have a separate clause for ‘special inclusion of newly listed stocks’ in its ad hoc revision items, there is a special clause for large-cap stocks in the regular revision items. Among newly listed stocks, those ranked within the top 50 in average market capitalization during the 15 trading days prior to the review date can be included at the December regular revision. Kakao Games, which was listed on the KOSDAQ on the 10th of this month, ranked 5th in market capitalization on its first day and has maintained that position, meeting the special inclusion criteria and is expected to be smoothly included in the index during the December regular revision.