Unicorn Company IPO Sparks Excitement Including Related Stocks

[Asia Economy Reporter Minji Lee] With Coupang's spectacular debut on the New York Stock Exchange, investor interest in domestic unicorn companies (companies valued at over 1 trillion KRW) is increasing. In the unlisted market, investment is pouring not only into the stocks of these companies but also into companies that can benefit from their listing in the stock market.

As of 1:35 PM on the 31st, Ajou IB Investment was trading at 6,390 KRW, up 1% from the previous trading day. On the same day, the stock price surged about 10% to 6,950 KRW. Ajou IB Investment is known to have invested in Krafton, the game developer behind Battlegrounds, and Yanolja, a lodging reservation platform, reflecting expectations of benefits from their listings. Investor sentiment toward related stocks is expanding amid news that unicorn companies expected to list on the domestic stock market are preparing for listings while weighing options between the domestic and U.S. stock markets.

According to the Seoul Exchange unlisted market, Krafton's stock price has surged 68% since the beginning of the year, trading at 2.5 million KRW. Due to expectations of a listing within the year, investors eager to buy shares have driven the company's valuation to 21 trillion KRW, surpassing that of major game developer NCSoft (19 trillion KRW). During the same period, related stocks such as Daesung Venture Capital and TS Investment, which invested in Krafton, rose 104% and 37%, respectively.

Following Coupang, stocks related to Market Kurly, which is highly likely to list on the U.S. stock market, are also showing high price volatility. Market Kurly recently selected Goldman Sachs, Morgan Stanley, and JP Morgan as lead underwriters and is reportedly discussing the listing procedures on the U.S. stock market, increasing the likelihood of it earning the title of the "Next Coupang."

A "Market Kurly-related stocks" sector has also appeared on securities firms' HTS (Home Trading System). Since around Coupang's listing date (the 11th), Market Kurly-related stocks have steadily risen, with the highest increase seen in KC Feed, which surged 82% in just 15 trading days. KC Feed supplies fresh eggs to Market Kurly and manufactures and sells compound feed and livestock products purchased from farms.

Heungkuk F&B and Mirae Asset Venture also rose 46% and 33%, respectively. Heungkuk F&B's stock price was influenced by its supply of food and beverage products to Market Kurly. Mirae Asset Venture Investment is an investor in Market Kurly, holding a 2.5% stake. DSC Investment, which invested 4 billion KRW in Market Kurly, also rose 28% during the same period.

Although related stocks of unicorn companies nearing listing may maintain high prices until the listing, caution is required as they may experience sharp declines afterward. Most stocks that previously enjoyed the "Coupang effect" saw steep drops. Dongbang, Coupang's dedicated logistics operator and a representative beneficiary stock, surged to 13,950 KRW (February 18) after news of Coupang's listing on the New York Stock Exchange on the 15th of last month but is currently trading at 6,780 KRW, down 51%. KTH, which supplies content to Coupang Play, also hit an intraday high of 19,950 KRW on the 17th of last month but is now trading at 12,400 KRW, down 37%.