[Special Stock] 'Ppeongtwigi Listing' Padu Hits New Low... Falls to 40% of IPO Price

Record Low Price Hit, Market Cap Plummets to 600 Billion Won Range
Performance Trending Upward Since 'Bubble IPO' Controversy
Investor Trust Recovery Still a Long Way Off

The stock price of Padu, which was once embroiled in controversy over an 'inflated IPO,' is plummeting relentlessly. The stock price has fallen to about 40% of the public offering price and has even hit an all-time low.

As of 10:03 AM on the 6th, Padu is trading at 12,540 KRW, down 3.83% (500 KRW) from the previous trading day. It has broken below the post-IPO all-time low of 12,580 KRW recorded on August 8. The stock continues to fall with no clear bottom in sight. Its market capitalization has also dropped to the 600 billion KRW range.

Padu entered the KOSDAQ market last August, gaining attention as a fabless unicorn (a private company valued at over 1 trillion KRW). The public offering price was 31,000 KRW. However, just three months after entering the stock market, it announced shocking earnings, sparking controversy over an 'inflated IPO.' Its sales for Q3 last year were only 320.81 million KRW, making it hard to believe it was a company valued in the trillion-KRW range. There were repeated accusations that the sales forecasts in the securities registration statement submitted to financial authorities were inflated. Several companies, including Padu, were subject to raids related to the inflated IPO controversy. Major clients such as SK Hynix, and the lead underwriters Korea Investment & Securities and NH Investment & Securities, were also involved.

The so-called 'Padu incident' triggered a domino effect of negative repercussions. The criteria for technology-specialized IPOs have become stricter than before, and venture capitalists (VCs) aiming to exit investments through IPOs of portfolio companies now face more difficulties than in the past. Although Padu showed improving performance with sales of 2.3 billion KRW in Q1 and 7.1 billion KRW in Q2 this year after a shocking 2023, it still seems unable to win back investors' confidence.