[MarketING] Will the IPO Slump Ease with Rookie Stocks Holding Up?

Future Semiconductor Records 'Ttah-sang' on First Day of Listing
Newcomer Stock Performs Well, Raising Hopes for Reviving IPO Market Warmth

[Image source=Yonhap News]

[Asia Economy Reporter Song Hwajeong] Newly listed stocks that entered the stock market this year are showing favorable price trends, drawing attention as they bring warmth to the frozen initial public offering (IPO) market.

Newly Listed Stocks Hold Up Well

On the 27th, the KOSPI closed at 2,484.02, up 15.37 points (0.62%) from the previous day. The KOSDAQ ended the session at 741.25, rising 2.31 points (0.31%).

Mirae Semiconductor, which debuted on the KOSDAQ market that day, closed at the upper price limit. Mirae Semiconductor's public offering price was 6,000 KRW, and after opening at 12,000 KRW, it surged to the upper limit, closing at 15,600 KRW. It recorded a "ttasang"?opening at twice the public offering price and then hitting the upper limit.

Mirae Semiconductor recorded a competitive ratio of 1,576.56 to 1 in the demand forecast for institutional investors held on the 10th and 11th, setting the public offering price at the upper end of the desired price band (5,300?6,000 KRW). In the general subscription held on the 16th and 17th of the same month, it achieved a competitive ratio of 938.26 to 1. The subscription deposits amounted to 2.5333 trillion KRW. Established in 1996, Mirae Semiconductor is a semiconductor distribution company that has a "distribution partners contract" with Samsung Electronics.

Earlier, Hanju Light Metal and TMC, which entered the KOSDAQ market on the 19th, also rose for four consecutive trading days after listing. Hanju Light Metal hit the upper price limit on its first day of listing, with its stock price rising 89.35% compared to the public offering price. TMC's stock price increased by 31.43% compared to its public offering price.

As newly listed stocks show favorable price trends, they are expected to have a positive impact on the frozen IPO market. Early this year, Curly, considered a major IPO, postponed its listing, and K-Bank and Golfzon County failed to submit securities registration statements within the deadline, making it difficult for them to list within the first half of the year. As a result, major IPOs have been consecutively halted, further shrinking the IPO market that had already contracted since last year.

Choi Jong-kyung, a researcher at Heungkuk Securities, said, "This year's IPO market is directly linked to external variables such as global inflation and interest rate hikes, and the possibility of a stock market rebound. Therefore, existing forecasts may become meaningless, and the market could change drastically. Since there are many companies waiting to list, the key will be how much the depressed market can revive and ignite the IPO market."

Major IPOs Expected in the Second Half

Next month, the market's attention is focused on the listing of Oasis, considered a major IPO.

Oasis recently submitted its securities registration statement to the Financial Supervisory Service and has begun the listing process. Oasis's desired public offering price band is 30,500 to 39,500 KRW, with an expected market capitalization of 967.9 billion to 1.2535 trillion KRW, making it the first trillion-KRW IPO of the year. Demand forecasting for institutional investors will be conducted on the 7th and 8th of next month, followed by a general subscription on the 14th and 15th, with a planned listing on the KOSDAQ market in February. Oasis is the second-largest company in the dawn delivery industry, and with Curly postponing its listing, Oasis is expected to claim the title of the first domestic e-commerce company to list. The success of Oasis will likely influence the listing decisions and timing of other major companies that are currently postponing their IPOs.

Park Jong-seon, a researcher at Eugene Investment & Securities, said, "The timing of IPOs by companies is expected to be adjusted according to market volatility. Compared to the first half of the year, when market recovery was anticipated, the proportion of major IPOs is expected to increase in the second half."