ICTK, Stock Price Halved Compared to IPO Price Just 2 Months After Listing

Listed on May 17 at an IPO price of 20,000 KRW
Price on listing day: 36,950 KRW → 10,060 KRW
Demand forecast's fair price verification function 'ineffective'

The stock price of ICTK fell to about half of its initial public offering (IPO) price just over a month after listing. Despite attracting subscription deposits worth 5.5 trillion won during the IPO subscription, the stock price has been declining continuously since the listing.

According to the financial investment industry on the 27th, ICTK's stock price has dropped 72.6% compared to the highest price of 36,950 won recorded on the 17th of last month.

Although it attracted attention from the demand forecast before listing to the IPO subscription and the listing day, concerns over overhang (potential large-scale sell-off volume) hindered its performance. Founded in 2001, ICTK is a security system semiconductor design company.

From the 7th of last month, the IPO subscription was conducted for retail investors over two days, recording a competition rate of 1,107.95 to 1. The demand forecast for institutional investors was also successful. The IPO price was set at 20,000 won, higher than the expected range of 13,000 to 16,000 won. After listing at 20,000 won on the 17th of last month, the stock price rose to 36,950 won but closed at 28,700 won. The trading volume on the first day exceeded 1 trillion won.

The stock price trend after listing appears to be the result of the release of pre-listing shares held by investors. Immediately after listing, the freely tradable shares accounted for 32.1% (4.21 million shares) of the total shares. Venture finance divided the lock-up period for held shares into 1 to 3 months and has been continuing to dispose of the sellable shares. UTC Investment has been steadily reducing its stake after the listing. As the average daily trading volume decreased and concerns over overhang continued, the stock price retreated and fell to the post-listing low of 10,060 won on the 26th.

As the stock price dropped to about half of the IPO price in just over a month, criticisms of overvaluation have emerged. NH Investment & Securities, the IPO underwriter, selected KCS, Thales, NXP, Infineon, and Nuvoton as comparable companies to estimate ICTK's fair corporate value. An average price-to-earnings ratio (PER) of 24.2 times was applied. However, considering that ICTK is currently in a deficit, a discount rate was applied to the estimated net income for 2026. The per-share valuation calculated by NH Investment & Securities was 18,828 won, but institutional investors participating in the demand forecast hoped to acquire new shares at 20,000 won.

A financial investment industry official explained, "Since the day of listing, after the volatility was widened, institutional investors try to receive even one more share rather than verifying the appropriate IPO price," adding, "This is why cases of setting the IPO price above the upper limit of the expected range are increasing."