Newly Listed Stocks Show Strong Early Performance This Month
Four Out of Six Achieve Triple-Digit Gains on Debut
Number of New Listings This Month Rises Sharply Compared to Last Month
Newly listed stocks that debuted on the stock market this month have shown strong price performance, raising hopes for a positive turnaround in the sluggish initial public offering (IPO) market.
According to the Korea Exchange on May 21, BioVisu, which was listed on the KOSDAQ market the previous day, closed at 18,380 won, up 9,280 won (101.98%) from its IPO price of 9,100 won.
All of the newly listed stocks this month, in addition to BioVisu, are trading well above their IPO prices. NowRobotics, which was listed on the KOSDAQ market on May 8, is up 278.68% from its IPO price. NowRobotics, which had an IPO price of 6,800 won, is currently trading at 25,750 won. WonilTNI is up 115.56%, OrganoidScience is up 92.86%, ImmunOncia is up 91.11%, and RokitHealthcare is up 72%.
Among these, four stocks?excluding RokitHealthcare and OrganoidScience?each recorded a "double" (an increase to twice the IPO price) on their first day of listing. So far this year, eight stocks have posted triple-digit percentage gains compared to their IPO price on their first day of trading, with half of them debuting this month.
The number of newly listed companies has also increased significantly compared to last month. Last month, there were only two new listings (excluding SPAC mergers and transfers), but already six companies have been listed this month. Cho Daehyung, a researcher at DS Investment & Securities, analyzed, "The number of new listings in April was at the lower end of the historical range for April," and explained, "This was due to schedule adjustments following amendments to securities registration statements by small and mid-sized companies, as well as the consecutive withdrawals of large-scale IPOs, including DN Solutions, which had drawn attention as a rare trillion-won offering." He added, "Since the absolute number of new listings in April was small, the initial trading prices of newly listed stocks in May are generally being set at levels well above their IPO prices."
On May 22, DalbaGlobal, regarded as a promising K-beauty company, is scheduled to be listed on the Korea Exchange main board, raising expectations that the strong performance of newly listed stocks will continue. It will be the first time in about a year that a domestic beauty company is listed on the main board, following APR in February 2024.
DalbaGlobal conducted a book-building process for institutional investors, both domestic and overseas, from April 28 to May 7, attracting a total of 2,225 institutions and recording a competition ratio of 1,140.88 to 1. The final IPO price was set at the upper end of the desired range (54,500 to 66,300 won), at 66,300 won. In the subsequent public subscription for retail investors held on May 9 and 10, the competition ratio was 1,112 to 1, with subscription deposits totaling approximately 7.07 trillion won.
Lee Haeni, a researcher at Eugene Investment & Securities, stated, "DalbaGlobal's IPO price reflects a 2025 estimated price-to-earnings ratio (PER) of 10.2 to 12.4 times, which is lower than the 2025 average PER of 15.7 times for domestic cosmetics companies." She added, "DalbaGlobal is expected to accelerate its offline expansion in major regions this year and continue to grow overseas sales. Accordingly, it is likely to reach 100,000 won after listing, suggesting additional upside potential of 51 to 83%."
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