KTB Network IPO Price Set at the Lower End of the Desired Range, 5,800 Won

Impact of Sharp Drop in Korean Stock Market on Demand Forecast Day

[Asia Economy Reporter Minwoo Lee] The offering price of KTB Network, which is set to be listed on the KOSDAQ market this month, has been finalized at the lower end of the expected range, 5,800 KRW. This appears to be due to weakened investor sentiment as the demand forecast for institutional investors was conducted during a sharp decline in the KOSPI.

On the 2nd, KTB Network announced that it had finalized the offering price within the expected range (5,800?7,200 KRW) after conducting a demand forecast for domestic and foreign institutions from the 29th to 30th of last month.

The demand forecast was conducted amid a market crash where the KOSPI index hit its lowest point this year, which is believed to have significantly influenced the determination of the offering price. A representative from Korea Investment & Securities, the lead underwriter, stated, "During the demand forecast period, the KOSDAQ index was continuously declining due to the spread of the new COVID-19 variant 'Omicron.' Considering that KTB Network’s competitiveness and growth have entered a full-fledged trajectory, the result is somewhat disappointing."

A total of 405 institutions participated in this demand forecast, submitting 752.91 million shares for 15 million shares, which account for 75% of the total offering shares, resulting in a competition rate of 50.19 to 1. The total amount raised is approximately 116 billion KRW, and the market capitalization after listing is expected to be about 580 billion KRW.

KTB Network’s general subscription volume is 5 million shares, which is 25% of the total offering volume. General investors will be able to subscribe over two days, from the 6th to the 7th. The company is scheduled to be listed on the KOSDAQ market on the 16th. The lead underwriter is Korea Investment & Securities, with NH Investment & Securities, Samsung Securities, Eugene Investment & Securities, Hi Investment & Securities, and KB Securities participating as the underwriting group.

Previously, KTB Network, as a first-generation domestic venture capital firm, has successfully invested in companies such as Viva Republica, the operator of the comprehensive financial platform 'Toss,' and Woowa Brothers, the operator of the food delivery service 'Baedal Minjok.' Currently, it is expanding its investment portfolio to markets in the United States, China, India, and Southeast Asia, planning to increase the proportion of overseas investments to about 40% of the total fund. Additionally, the recovery of profits from domestic and foreign invested companies is expected to continue steadily, and large-scale fund formation is planned to proceed actively after the listing.

Kim Chang-gyu, CEO of KTB Network, said, "Since many domestic and foreign institutional investors who participated in the IR highly evaluated the company’s long-term vision and growth potential, we will prove our competitiveness through high investment performance in the future. Given the advantage in the offering price, we ask for the interest of those who are interested in investing in the public offering shares."