[Asia Economy Reporter Lee Seon-ae] Despite SK Innovation Technology (SKIET)'s failure to achieve "ttasang" (opening price at twice the IPO price followed by hitting the upper limit) and a sharp decline, enthusiasm for investing in IPO stocks remains strong.
According to the financial investment industry on the 17th, six companies including HPIO (listed on the 14th), CNC International, Sam CNS, Samyoung S&C, Jeju Beer, and Jin System have conducted IPO subscriptions so far this month, with a total subscription deposit amounting to 45 trillion KRW. On this day, CNC International entered the KOSDAQ market with a subscription competition rate of 898 to 1.
On the 20th, Sam CNS will be listed on the KOSDAQ market. The subscription competition rate was 1104 to 1, gathering approximately 10.7668 trillion KRW in subscription deposits. In the institutional investor demand forecast, it recorded a competition rate of 1538 to 1. The final IPO price was confirmed at 6,500 KRW, exceeding the upper limit of the expected price band (5,000 KRW to 5,700 KRW).
On the 21st, Samyoung S&C will make its debut on the KOSDAQ market. The subscription competition rate was recorded at 2392 to 1. In the institutional investor demand forecast, 1,549 domestic and foreign institutions participated, showing a competition rate of 1762 to 1. The IPO price was also confirmed at 11,000 KRW, exceeding the expected price band (7,800 KRW to 10,000 KRW).
Jeju Beer, which will be listed on the KOSDAQ market on the 26th, recorded a subscription competition rate of 1748 to 1. The institutional investor demand forecast competition rate was 1356 to 1. Due to the high institutional competition rate, the IPO price was set at 3,200 KRW, exceeding the upper limit of the expected price band (2,300 KRW to 2,900 KRW). This is the highest competition rate ever among companies listed under the Tesla requirements (special listing for unprofitable companies). On the same day, Jin System's subscription competition rate was 355 to 1, attracting about 1.5159 trillion KRW in subscription deposits. A total of 1,070 institutions participated in the institutional investor demand forecast, recording a competition rate of 943 to 1. The IPO price was confirmed at 20,000 KRW, the upper limit of the expected price range (16,000 KRW to 20,000 KRW).
The enthusiasm for IPO stock investment is likely to continue. This is because the probability of investment success is higher than failure. IPO stocks have passed verification by exchanges and the Financial Supervisory Service, and the IPO price is set by discounting the corporate value by about 20-40% during the subscription process, making them relatively stable and yielding high returns.
Looking at the stock price fluctuations of 30 companies newly listed through IPO procedures this year (excluding SPACs), the average return when selling the stocks received from the IPO on the first day of listing was about 90%. The companies with the highest returns were Rainbow Robotics (159.9%), Giant Step (158.6%), SK Bioscience (158.5%), Oros Technology (153.3%), Sunjin Beauty Science (151.2%), Mobirix (146.6%), and Haesung TPC (142.7%). All of these companies succeeded in achieving "ttasang" based on closing prices.
Researcher Park Jong-sun of Eugene Investment & Securities explained, "Due to abundant liquidity and many people targeting IPO stocks on the first day of listing, stock prices tend to rise strongly. Price adjustments are not all made on the first day of listing; as profit-taking volumes and lock-up release volumes emerge, adjustments often occur over several months."
Meanwhile, ADM Korea will conduct an institutional investor demand forecast from today until the 18th and receive general subscriptions on the 25th and 26th. It is scheduled to be listed on the KOSDAQ market in June. The company operates a CRO (Contract Research Organization) that conducts clinical trials phases 1 to 3 and a post-marketing surveillance (PMS) business that verifies safety and efficacy after new drug launches. Additionally, LB Rusem, Innodep, and Amosense plan to hold subscriptions next month.
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