Kakao Falls Out of Top 10 KOSPI Market Cap Amid Funding Concerns
OSTEM Enters KOSDAQ Top 10 Market Cap with Successful Tender Offer
SM Hits New High Amid Hive and Kakao Showdown
Secondary Battery Stocks' Strength Also Drives Market Cap Ranking Changes
[Asia Economy Reporter Lee Seon-ae] The fierce acquisition battle surrounding SM Entertainment (SM), involving Hive and Kakao's stake competition, as well as the public tender offer by Unison Capital Korea and others for Osstem Implant, has also changed the market capitalization rankings of related companies. Kakao, which is facing concerns over the burden of acquisition funds, has been pushed out of the top 10 in the KOSPI market capitalization rankings. Osstem Implant, whose public tender offer by private equity funds is progressing smoothly, has appeared in the top 10 of the KOSDAQ market capitalization rankings for the first time. SM, whose stock price rose due to the management rights war, has re-entered the top 10 of the KOSDAQ market capitalization rankings after about eight years.
The growth of the secondary battery industry is also a factor in the changes in market capitalization. POSCO Holdings pushed Kakao out. In the KOSDAQ market as well, the secondary battery industry showed strength. EcoPro BM, which is attracting attention as the leading stock, firmly holds the number one position.
According to the Korea Exchange on the 21st, Kakao, which entered the top 10 in KOSPI market capitalization (excluding Samsung Electronics preferred shares) on the last trading day of last year, fluctuated between 9th and 10th place from the first trading day of this year (January 2), but was eventually pushed out of the top 10 on the 17th. POSCO Holdings entered the top 10 for the first time, pushing Kakao down to 11th place. Last year, as global tightening intensified and growth stocks struggled, Kakao's stock price slid continuously. However, with the stock market rally starting in January this year, Kakao's stock price rose but then fell again after the SM acquisition battle unfolded. The burden of acquisition-related funds froze investor sentiment. The stock price, which soared to 71,300 won on the 9th of this month and showed an upward trend, then entered a downward path, closing at 63,100 won on the day, with a market capitalization of 28.1119 trillion won. The market capitalization gap with POSCO Holdings reached 1.1496 trillion won.
Changes in the KOSDAQ market capitalization rankings were also influenced by acquisition issues and the rise of the secondary battery sector. As public tender offers by private equity funds (PEFs) progressed, Osstem Implant's stock price recovered, entering the top 10 of the KOSDAQ market capitalization rankings for the first time on the 25th of last month, settling at 8th place. On the 21st, it remained at 9th place, maintaining its position within the top 10. The subscription deadline for the public tender offer for the acquisition of Osstem Implant's management rights, promoted by MBK Partners and Unison Capital Korea, is approaching on the 24th. MBK Partners and Unison Capital Korea are reported to have already secured more than 60% of the shares.
SM's stock price also surged about 70% compared to the beginning of the year as the acquisition battle, including Hive's public tender offer, heated up, soaring to the 130,000 won range and jumping from 16th to 7th in market capitalization rankings. It is the first time in eight years since 2014 that SM has entered the top 10 in market capitalization. However, concerns that Hive's short selling and buying operations may not proceed smoothly caused the stock price to fall to the 120,000 won range, placing it 8th in market capitalization on the 21st.
In the KOSDAQ market, like the KOSPI, not only the acquisition battle but also the secondary battery theme shook the market capitalization rankings. Celltrion Healthcare, which held the number one spot on the last trading day of last year, was pushed down to second place from the first day of the new year. EcoPro BM has consistently held the number one position, supported by the growth of the secondary battery sector. EcoPro BM's market capitalization surged from 9.1346 trillion won to 15.7264 trillion won on the 21st. Accordingly, the market capitalization gap between EcoPro BM and Celltrion Healthcare widened from 51.5 billion won on the 2nd of last month to 6.6269 trillion won on the 21st.
Celltrion Healthcare had held the number one position continuously since February 9, 2018, after Celltrion, which was previously number one in market capitalization, moved its listing to the KOSPI, but it seems unlikely to regain the leading position. This is because securities analysts say that despite EcoPro BM's rapid stock price rise, it still has high valuation attractiveness. Researcher Lee Anna of Yuanta Securities said, "Despite the recent sharp rise in EcoPro BM's stock price, it still has high valuation attractiveness, and there is also anticipation of order contracts in the U.S.," adding, "If order contracts are announced, it will lead to additional production capacity expansion."
EcoPro, the holding company of EcoPro BM, also saw its stock price soar from the beginning of the year, more than doubling and rising from 7th to 4th in market capitalization rankings. The top 1, 3 (L&F), 4, and 10 (Cheonbo) positions in the KOSDAQ market capitalization rankings are all occupied by companies related to the secondary battery industry. Due to the rise of the secondary battery sector and SM, companies such as Celltrion Pharm, Studio Dragon, and CJ ENM, which were in the top 10 last year, have been pushed out of the rankings.
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