2025 IPO Volume Surpasses 4.5 Trillion Won... Clear Signs of Market Recovery

77 Companies Listed, Public Offering Size Up 15% Year-on-Year
Stricter Lock-Up Commitments Sharpen Company Differentiation

In 2025, the domestic initial public offering (IPO) market showed a clear recovery in both offering size and overall performance indicators. In particular, the introduction of the mandatory holding commitment system has intensified the market's ability to distinguish between strong and weak companies.

According to the Korea Exchange and IR Qdus on December 30, a total of 77 companies went public this year, with 7 listed on the KOSPI and 70 on the KOSDAQ. While the number of listings was similar to the previous year (78 companies), the total amount raised through public offerings increased by 14.9% to 4.5667 trillion won, compared to 3.9751 trillion won the previous year.

Among these, 67 companies set their offering prices at or above the upper end of the desired price band during demand forecasting, two more than the previous year. While the numerical increase was limited, there was a significant qualitative shift. The average institutional investor commitment ratio this year was 18.8%, up 12.3 percentage points from the previous year's average of 6.5%. Notably, after improvements to the demand forecasting system, the average commitment ratio exceeded 40%, indicating that the regulatory changes had a direct impact on the market.

Competition ratios were also strong. The proportion of companies with institutional demand forecasting competition ratios exceeding 1,000 to 1 reached 46.8%. This represents a 44.4% increase in the number of companies meeting this criterion, from 25 last year to 36 this year. Retail subscription competition ratios also remained high, with 37 companies recording ratios of 1,000 to 1 or higher.

Looking at the details, the top ranks in institutional demand forecasting competition ratios were dominated by companies in the bio, robotics, and advanced manufacturing sectors. GFC Life Science recorded the highest competition ratio at 1,443.7 to 1, followed by Now Robotics (1,395.0 to 1), MD Device (1,366.7 to 1), Wonil TNI (1,312.2 to 1), and Samjin Food (1,303.9 to 1). In retail subscriptions, Samjin Food posted the highest competition ratio at 3,224.8 to 1, with Aromatica, Nota, Innotech, and Intocell also ranking high.

The average increase in opening price compared to the offering price was 89.2%, up 24.8 percentage points from 64.4% the previous year. Out of all 77 newly listed companies, 69 (or 89.6%) recorded opening prices above their offering prices, a marked improvement from last year's 79.5%. Curiosis, Aimed Bio, and Algenomics saw their opening prices rise by 300% compared to their offering prices, drawing significant market attention, while Innotech and Green Optics also posted increases well over twofold.

This year, the IPO market especially stood out for the intensified differentiation among companies, driven by the strengthening of the commitment system. Since July, the Financial Services Commission has implemented a system that gives priority allocation to institutional investors who commit to holding shares for a certain period.

Since the introduction of the priority allocation system, 13 out of 23 newly listed companies recorded commitment ratios above 40%. In contrast, 7 companies had commitment ratios below 20%, with some remaining in the single digits. In terms of stock performance, there were three cases where the share price fell below the offering price within 15 days of listing, all involving companies with low commitment ratios.

The market expects this trend to become even more pronounced in next year's IPO market. As market participants respond more actively to regulatory changes, the gap in commitment ratios and listing performance among individual stocks is likely to widen.

An IR Qdus representative stated, "2025 was a year when the effects of regulatory improvements were confirmed in the numbers," and predicted, "In 2026, polarization based on individual stock commitment ratios and company fundamentals will become even more pronounced, with both blockbuster IPOs and selective investment strategies strengthening simultaneously."