Major Big Fish Line Up... IPO Market Heats Up This Year

[Asia Economy Reporter Koh Hyung-kwang] The public offering market (IPO) is expected to gain momentum in the new year. Large-scale companies with trillion-won valuations, such as SK Biopharm and KakaoBank, are lined up and waiting. There are even expectations that the market size will far exceed the 8 trillion won recorded in 2017.

According to the Korea Exchange on the 2nd, 75 companies were listed on the KOSPI and KOSDAQ markets last year, with a total public offering size of about 3.81 trillion won. Although this is somewhat higher than the 2.82 trillion won in 2018, it is only about half of the 7.81 trillion won recorded in 2017.

This year, as IPO hopefuls are expected to go public one after another, the public offering market is anticipated to become a "big event." The most eye-catching is SK Biopharm. Established in April 2011, it is a company developing new drugs related to the central nervous system, with SK holding 100% of its shares. In November last year, it succeeded in obtaining approval from the U.S. Food and Drug Administration (FDA) for the epilepsy treatment drug "Xcopri" (generic name cenobamate). Notably, this is the first time a domestic pharmaceutical company has directly applied for FDA sales approval without licensing out the drug technology, drawing significant attention. Its corporate value is estimated to be over 5 trillion won. Since it applied for preliminary listing review at the Korea Exchange in October last year, it is expected to be listed in the first half of this year.

KakaoBank, which announced its listing plan last year, has also begun preparations for its IPO. Following approval from financial authorities in November last year, the major shareholder changed from Korea Investment Financial Holdings to Kakao, accelerating the listing process. KakaoBank, which recorded its first profit last year, is a leader in the internet banking sector, with its corporate value estimated to be around 6 trillion won. The company's listing is significant in terms of capital acquisition and is also interpreted as a commitment to accelerate growth through aggressive business expansion.

Taekwang Industrial, a specialized footwear original equipment manufacturer (OEM), is also preparing for an IPO. In August last year, Taekwang Industrial selected Korea Investment & Securities as its lead underwriter and is aiming to enter the KOSPI market in the first half of this year. Taekwang Industrial's corporate value is estimated to be roughly between 4 trillion and 5 trillion won. Hyundai Card is also reportedly coordinating to select a lead underwriter with the goal of listing on the Korea Exchange. Industry insiders estimate Hyundai Card's corporate value at about 2.5 trillion won, considering price-to-book ratios and other factors.

CJ Healthcare, acquired by Kolmar Korea, is also preparing for listing. CJ Healthcare has selected Samsung Securities, Korea Investment & Securities, and JP Morgan as lead underwriters and is preparing for its IPO. CJ Healthcare's corporate value is reported to be around 1.5 trillion to 2 trillion won.

The listing of Hotel Lotte is also a hot topic. It attempted to list in 2016 but was scrapped due to allegations of preferential treatment in Lotte Group's duty-free business. At that time, the industry valued Hotel Lotte at 15 trillion won. Recent personnel changes and organizational restructuring are analyzed as groundwork for pushing forward the listing of Hotel Lotte.

Researcher Roh Dong-gil of NH Investment & Securities said, "Last year, companies planning trillion-won public offerings postponed their listings to this year, resulting in a relatively subdued new listing public offering market last year," adding, "With companies expected to have trillion-won public offering amounts preparing for IPOs this year, a fresh breeze is expected to blow through the IPO market after a long time."

This content was produced with the assistance of AI translation services.