617% Surge and 'Ttattabble' Rally, but Now Retail Investors Face Major Losses in 400 Billion Won New Listings Trap

Individual Investors Trapped in the New Listing Slump, Account Balances Shrinking
Individuals Make 109 Billion Won in Net Purchases of The Pinkfong Company on First Day
Average Loss Rate Hits -19.5% in Just One Day
Over 400 Billion Won Tied Up in

Individual investors who have made net purchases exceeding 400 billion won in six newly listed companies on the KOSDAQ market this month are facing growing concerns.

According to the financial investment industry on November 19, individuals purchased 108.9 billion won worth of The Pinkfong Company shares, which were listed the previous day. The average purchase price was 51,636 won per share, 35.9% higher than the offering price of 38,000 won. On its first trading day, The Pinkfong Company’s stock price rose to 61,500 won before closing at 41,550 won. The estimated loss rate for individual investors was calculated at -19.5%. Collectively, individuals holding The Pinkfong Company shares are facing losses of approximately 20 billion won.

Among the top ten stocks by cumulative net purchases by individuals this month, newly listed stocks include Nota, Curiosis, Innotech, and Green Optics, with significant losses recorded from investments in these new listings.

Individuals made net purchases of Nota shares amounting to 89.3 billion won from the listing date on November 3 through the previous day. The average purchase price per share was 43,975 won, and as of the previous day’s closing price, the estimated loss rate stood at -31.0%. Nota, which was listed at an offering price of 9,100 won, closed its first trading day at 31,000 won. On November 6, the stock price soared to 65,300 won during intraday trading, marking a 617.6% increase from the offering price. The market capitalization surged from 192.6 billion won based on the offering price to 1.4 trillion won. As the stock price rapidly increased in a short period, a large volume of sell orders for profit-taking was triggered, and the price dropped to 30,350 won the previous day. It took only eight trading days for the price to be cut in half from its post-listing peak.

Curiosis was listed on November 13 at an offering price of 22,000 won. On the listing day, the stock opened and closed at 88,000 won, achieving a “tattable” (a fourfold increase over the offering price). The following day, the price rose to 96,400 won before closing at 61,600 won. The stock continued to decline afterward, falling to 45,650 won. Individual investors, who recorded a cumulative net purchase of 65.1 billion won, are facing an estimated loss rate of -33.5%.

For Innotech, which was listed on November 7, the loss rate for individual investors has reached -40.7%. The listing occurred immediately after Nota’s sharp rally, making it the new listing that saw the most aggressive “blind investments” by individuals. On its first trading day, the stock price rose 300% compared to the offering price of 14,700 won. On the second day, it hit the upper price limit again. Since November 11, Innotech has been on a six-day consecutive decline, with the stock price dropping 56% from its peak.

An official from the financial investment industry explained, “After the sharp rise in Nota, speculative funds appear to have flocked to newly listed stocks with low initial float. As the mandatory holding period for institutional investors who participated in the demand forecast approaches, the decline has intensified.”

The official added, “Senatechnology, Green Optics, and The Pinkfong Company all hit their highs early in the session before giving up their gains. Investors should consider that stock price volatility is especially high in the early stages of listing.”