SK Biopharm, IPO Subscription Deposit Sets 'New Record'... 100 Million KRW Invested Yields 12 Shares

[Asia Economy Reporter Park Hyungsoo] SK Biopharm, regarded as the 'biggest fish' in this year's initial public offering (IPO) market, has set a record for the largest general subscription deposit ever.

According to NH Investment & Securities on the 24th, SK Biopharm's general subscription competition rate was recorded at 323.02 to 1. A total of 1,264,853,700 subscription applications were received for the 3,915,662 shares offered. The total subscription deposit reached 30.9899 trillion KRW, surpassing the previous record of 30.0649 trillion KRW set during Cheil Industries' listing in 2014.

SK Biopharm, scheduled to be listed on the KOSPI market on the 2nd of next month, attracted attention among investors during the listing process. Analysts in Yeouido's securities circles estimated SK Biopharm's fair value to be around 6 trillion KRW, fueling a frenzy of interest in the public offering. Based on the public offering price of 49,000 KRW, the market capitalization is 3.8373 trillion KRW. This raised expectations that investors could achieve high returns even if they sold their shares on the listing day.

Among individual customers participating in the subscription, it is known that several investors deposited about 2.9 billion KRW in subscription deposits for the maximum subscription limit of 120,000 shares per person. Due to the high competition rate, depositing 100 million KRW as a subscription deposit would yield about 12 to 13 shares of the public offering.

Kim Taehee, a researcher at Mirae Asset Daewoo, analyzed, "We believe there is a high possibility of overshooting in the stock price due to supply and demand issues after listing," adding, "Since 80% of the shares are subject to sale restrictions, the circulating volume is not large."

He also added, "With the special inclusion in the KOSPI 200, there may be buying demand from passive funds," and "Unlike existing new drug development companies that list at an early clinical stage, SK Biopharm is a company that has already been sufficiently validated."

SK Biopharm's epilepsy treatment 'Xcopri' and sleep disorder treatment 'Sunosi' have received final approval from the FDA and have started sales in the United States. Both have completed technology transfer agreements with overseas pharmaceutical companies.

[Image source=Yonhap News]

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