A Total of 46 Newly Listed Companies (Excluding SPACs) in Q3 Cumulative... 34 Companies Listed in Q3 Alone
[Asia Economy Reporter Kum Boryeong] The initial public offering (IPO) market, which was stagnant in the first half of the year due to the novel coronavirus disease (COVID-19), showed signs of recovery in the third quarter. This trend is expected to continue into next year.
According to the Korea Exchange on the 1st, the cumulative number of newly listed companies (excluding SPACs) in the third quarter totaled 46, an increase of 6 companies compared to the same period last year. Notably, 34 companies were listed in the third quarter alone.
The recovery of the IPO market was also evident through the offering prices. Including listed REITs, a total of 36 companies set their prices above the upper limit of the expected offering price band.
In demand forecasting targeting institutional investors, many companies recorded a competition rate exceeding 1000 to 1. These include Vinatek, PIMS, Kakao Games, P&K Skin Clinical Research Center, Selemix, Metuzin, Younglimwon Soft Lab, Korea Pharma, Iruda, Genolution, TSI, and Apro. Kakao Games set a new record with a demand forecast competition rate of 1478.53 to 1.
The competition rates for general subscription also far exceeded 1000 to 1 for TSI, Younglimwon Soft Lab, Selemix, IDP, Metuzin, and Aptamer Science. Iruda set a new IPO subscription competition record with a rate of 3039.55 to 1. Younglimwon Soft Lab and Korea Pharma also surpassed 2000 to 1, with rates of 2493.57 to 1 and 2036 to 1, respectively.
An IR Qudus official explained, "It is important to pay attention to the diversification of IPO sectors, as IPO deals from various industries such as bio, software, and secondary batteries have emerged. Due to the era changes caused by the COVID-19 situation, the number of IPOs in bio and software-related sectors increased, and after the third quarter, manufacturing companies also began to appear in the IPO market one after another."
The vitality of the IPO market is expected to continue until the end of the year. It is understood that many companies are preparing to submit preliminary IPO review requests and securities registration statements. Among the biggest IPOs in the second half of the year, Big Hit Entertainment is scheduled to conduct a general subscription from the 5th to 6th and list on the KOSPI market on the 15th.
The IPO market is likely to remain hot next year as well. Large companies such as KakaoBank and KakaoPay have officially announced plans to go public next year. KakaoBank held a board meeting on the 23rd of last month and resolved to pursue an IPO aiming for a listing next year. KakaoPay recently appointed KB Securities as the lead underwriter and has begun the listing process. Krafton, which gained attention with the success of 'Battlegrounds,' is also reportedly aiming for a listing next year. Additionally, SK Bioscience selected an underwriter in July with the goal of going public next year.
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