Will the Big IPO Market Open in the Second Half of the Year... Promising Candidates Waiting in Line

Expanded Price Limit on IPO Day Boosts New Listings
Funds Flock to IPO Subscriptions After Securisen and Almek Listings
Unicorn Pado's Successful Listing May Attract Major Players

Following the expansion of the price limit on the first day of listing for newly listed companies, funds are pouring into the initial public offering (IPO) market. Companies eager to go public when interest is high are also accelerating their steps.

According to the Financial Supervisory Service's electronic disclosure system on the 3rd, excluding SPACs, 14 companies including Phil Energy, SensorView, YLab, BeautySkin, Tilon, and Vernect are planning public offering subscriptions in July. Considering that the average number of companies applying for subscriptions per month over the past three months from April to June was less than six, July marks a 'big IPO season.' Of course, considering that schedules may be delayed due to amendments to registration statements, the actual number of companies participating in subscriptions may be fewer than planned.

The investment banking (IB) industry analyzed that the IPO market activation effect due to the expanded price limit on the first day of listing is appearing. Recently, companies such as Secuzen, Almek, and InnoSimulation, which conducted public offering subscriptions, recorded high competition rates, and investors in Secuzen and Almek public offerings achieved high investment returns. Secuzen rose 205% compared to the public offering price on the first day of listing, recording a higher increase than 'ttasang' (forming an opening price at twice the public offering price and then hitting the upper limit). Almek rose 99%.

Going Public When Funds Are Flowing... Expectation for Major IPOs in October Peak Season

Yoonjung Kim, a researcher at Ebest Investment & Securities, said, "With the market volatility expansion measure on the listing day, it has become possible to achieve 'ttattabl' returns (four times the public offering price) from the opening price," and added, "Newly listed stock investors are expected to actively participate in public offering subscriptions before trading on the market after listing."

The expected return for public offering investors has increased from 'ttasang' to 'ttattabl' (rising to four times the public offering price), and interest in public offering investments has grown. There is an incentive for new investors to increase in addition to existing public offering investors. The expected return on the listing day has risen from the previous 160% to 300%. As the enthusiasm for public offering subscriptions heats up, there is a mood to hasten listings. IB industry experts advised that careful selection is necessary. When subscription schedules overlap, funds may concentrate on high-quality public offerings.

Companies planning public offering subscriptions this month include Phil Energy, SensorView, YLab, BeautySkin, Tilon, Vernect, ALT, Curiox Biosystems, Pharos iBio, CGtronics, Smart Radar Systems, MICube Solutions, Pado, and Securetter, totaling 14 companies.

Among them, Pado is a major public offering expected to exceed a corporate value of 1 trillion won. Based on the lower end of the public offering price range (26,000 to 31,000 won), the public offering scale is 162.5 billion won, and the corporate value reaches 1.3 trillion won. Pado became the first unicorn company (a private company valued at over 1 trillion won) among domestic fabless startups. In the pre-IPO equity investment round in February, it was recognized with a corporate value of about 1.08 trillion won.

Founded in 2015, Pado is a fabless semiconductor company specializing in data centers. It mainly develops solid-state drive (SSD) controllers for data centers. The lead underwriter, NH Investment & Securities, evaluated Pado as having succeeded in developing competitive products in the enterprise SSD controller semiconductor and controller business. Furthermore, it judged that Pado has secured recognition and position as a fabless company in the global data center semiconductor market. The public offering subscription is scheduled for the 27th to 28th of this month.

If Pado successfully completes its IPO, it is expected to bring favorable winds to the public offering subscriptions of companies preparing to list on the KOSPI market, such as Nextil, EcoPro Materials, Doosan Robotics, and Seoul Guarantee Insurance. The possibility of major public offerings being listed one after another during the IPO autumn peak season around October this year has increased.

Phil Energy supplies notching and stacking equipment necessary for secondary battery assembly processes to Samsung SDI. As Samsung SDI increases its investment, Phil Energy is also expected to continue growing. Kyung Choi, a researcher at Heungkuk Securities, analyzed, "The integrated equipment that combines notching and stacking processes reduces the process steps and increases space efficiency by 30%," adding, "Orders are expected to continue based on technological superiority." Phil Energy plans to start subscriptions from the 5th and aims to raise 74 billion won based on the lower end of the public offering price range.