Even if Big Hit doesn't hit... Awaiting multiple IPO listings of public offering stocks

18 Companies Awaiting IPO One After Another... 74% of This Year's IPOs Concentrated in Q3
Concerns Arise Over End of Public Offering Boom Amid Big Hit's Poor Performance

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Although Big Hit Entertainment's stock price was unexpectedly sluggish, attention is focused on whether the public offering craze will continue as companies preparing for listing are lined up one after another.

According to the Financial Supervisory Service's electronic disclosure system on the 18th, 18 companies have submitted securities registration statements aiming to list on the KOSPI or KOSDAQ by next month and have finalized demand forecasting and general subscription schedules.

Vibe Company is scheduled for general investor subscription on the 19th-20th, and WithTech and Senko on the 20th-21st, all preparing for listing on the KOSDAQ market by the end of this month. PeopleBio, which has already completed general subscription, will enter the KOSDAQ on the 19th. Micobiomed will also transfer its listing from KONEX to KOSDAQ on the 22nd.

Next month, Kyochon F&B and Myungshin Industry will enter the KOSPI market. They will receive general subscriptions on November 3-4 and November 12-13, respectively. T&L, Solux, Point Mobile, Cliniomics, Alchera, Mobirix, GoBiolab, Nepes Arc, QuantaMatrix, Hana Technology, and Jeil Electric Industry are also scheduled to list on the KOSDAQ in November.

As the stock market, which plummeted due to the impact of the novel coronavirus infection (COVID-19), recovers, a series of new listings are expected in the second half of the year. Among the 46 companies listed on the KOSPI and KOSDAQ markets this year, 74% (34 companies) were listed in the third quarter. Dozens of companies are also waiting for listing-related review results.

Although the initial public offering (IPO) craze has been blowing with record-breaking subscription deposits several times, the stock price performance after listing has been mixed. Among 11 newly listed IPO stocks since early last month, five stocks have fallen below their offering price. Panasia, which was planning to list on the KOSDAQ this month, withdrew its listing after institutional investor demand forecasting last month.

In particular, as Big Hit Entertainment, considered the biggest IPO in the second half, showed unexpected sluggishness, concerns are growing in the public offering market. Unlike SK Biopharm and Kakao Games, which closed with a 'ttasang' (opening price at twice the offering price followed by the upper limit price) on the first day of listing, Big Hit closed below the opening price from the first day. Despite BTS, the idol group under Big Hit, continuing its global popularity even during the COVID-19 situation, the stock price was sluggish, leading some to worry that the public offering craze has reached its 'final stage' since Big Hit.