Haas Keeps IPO Price but Retail Investors Sigh

2,7600 KRW on IPO Day to 17,150 KRW
Institutions Net Sold at an Average of 26,900 KRW per Share
Individuals Experienced an Average Evaluation Loss Rate of 25% on IPO Day

Haas, a dental prosthetic restoration material company, saw a slight increase compared to its IPO price on its first day of listing. However, it dropped nearly 40% compared to the opening price. Institutions sold, while individual investors bought.

According to the financial investment industry on the 3rd, Haas closed trading at 17,150 KRW, up 7.19% from the IPO price of 16,000 KRW.

Haas, which debuted on the KOSDAQ market that day, started trading at 27,600 KRW, 60.93% higher than the IPO price. Although it rose to as high as 29,550 KRW in the early session, the gains gradually diminished over time. The trading volume reached 443.8 billion KRW, which was 3.3 times the market capitalization of 134.4 billion KRW.

Institutions and foreigners recorded net sales of 692,300 shares and 236,000 shares, respectively. Institutions sold at an average price of 26,907 KRW per share. The average selling price per share for foreigners was 24,352 KRW. Individual investors, who showed a net buying of 978,900 shares, had an average purchase price of 23,061 KRW per share. Based on the closing price that day, the evaluation loss rate was 25.6%.

Institutions that participated in the demand forecast were allocated 1,357,500 shares of the IPO. From the 13th to the 19th of last month, over five business days, 2,140 domestic and foreign institutions participated in the demand forecast. Among the participating institutions, more than 90% offered prices higher than the upper limit of the IPO price range of 12,000 KRW. The IPO price was finalized at 16,000 KRW, which is higher than the expected range of 9,000 to 12,000 KRW. A representative from Samsung Securities, the lead underwriter, said, "We received excellent evaluations during the investor relations (IR) sessions," adding, "This led to the success of the demand forecast."

Despite the high IPO price, the subscription for the IPO shares was successful. General investors submitted deposits totaling 7.7 trillion KRW, resulting in a competition rate of 2,126 to 1.

Haas is recognized for its technological expertise in the field of dental prosthetic restoration materials. Its main product is lithium disilicate glass ceramic, the material most similar to natural teeth. Haas holds the third-largest market share worldwide. Last year, it recorded sales of 15 billion KRW and an operating profit of 1.9 billion KRW. In the first quarter of this year, it achieved sales of 4.1 billion KRW and an operating profit of 800 million KRW.

Jongseon Park, a researcher at Eugene Investment & Securities, explained, "The market size for lithium disilicate, which is most similar to natural teeth, is expected to grow at an average annual rate of 17.2% from 2022 to 2029," adding, "Haas exports to more than 70 countries worldwide."