GI Innovation, Public Offering on 27-28 This Month
Bioinfra Lowers Offering Price Band for Retry
[Asia Economy Reporter Myunghwan Lee] The pharmaceutical and biotech industries are knocking on the door of the initial public offering (IPO) market.
GI Innovation announced its preparation for listing on the KOSDAQ market by submitting a securities registration statement to the Financial Services Commission on the 30th of last month. GI Innovation is a bio-venture company researching and developing next-generation immunotherapies based on fusion proteins. Its main pipelines include the bispecific fusion immuno-oncology drug ‘GI-101’ and the allergy treatment ‘GI-301’. The planned number of shares to be offered is 2 million, with a desired offering price band set between 16,000 KRW and 21,000 KRW. Demand forecasting will be conducted over two days on the 21st and 22nd of this month, followed by a general public subscription on the 27th and 28th. If the process proceeds as scheduled, the company is expected to be listed on the KOSDAQ market early next month.
There are also ‘repeat candidates’ reattempting IPOs this year after failing to list last year. Bioinfra attempted to list on the KOSDAQ in November last year but withdrew its offering as the IPO market froze. At that time, Bioinfra stated, "Due to the global stock market downturn caused by interest rate hikes and inflation, the conditions for the IPO market are challenging," and added, "Based on internal management’s judgment and advice from external experts that more time is needed to enhance corporate value, we have decided to withdraw the offering." For this listing, Bioinfra lowered its offering price band. The desired offering price band dropped from 23,000 KRW?26,000 KRW last year to 18,000 KRW?21,000 KRW, reducing the IPO scale compared to last year’s attempt. Bioinfra will conduct demand forecasting on the 13th and 14th of next month, followed by a general public subscription on the 20th and 21st.
The results of their offerings are expected to serve as a barometer for biotech companies pursuing listings this year. According to IR consulting firm IRQdos, among 12 biotech and healthcare companies that went public on the domestic stock market last year, eight had offering prices below the band. Three companies set their offering prices at the lower or middle end of the band. Only one company, RP Bio, set its offering price at the upper end of the band. This outcome is interpreted as a combined effect of the ongoing global interest rate hike trend since last year, which made the IPO market generally difficult, and the lowered market expectations for biotech companies.
There is also hope that investment sentiment toward the biotech industry may recover. Kiwoom Securities researcher Hyemin Heo analyzed, "If positive clinical announcements or other momentum occur, investment sentiment recovery is considered quite possible," adding, "Expectations include the phase 3 trial of the combination with Lazertinib, the sales acceleration of Xcopri, penetration of Humira biosimilars, and technology transfers amid competitive dynamics among big pharma."
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