Kakao Games Subscription Frenzy, Heat Still 'Hot' on Deadline Day

Competition Ratio Exceeds 700 to 1... Possibility of Breaking All-Time Record for Deposit Amount Increases

On the morning of the 2nd at 9 a.m., investors gathered from the opening time at the Korea Investment & Securities branch in Yeouido, Yeongdeungpo-gu, Seoul, inquiring about the Kakao Games IPO subscription.

[Asia Economy Reporter Minwoo Lee] "No matter how high the competition rate is, it's always beneficial to participate."

At 9 a.m. on the 2nd, as the Yeouido branch of Korea Investment & Securities in Yeongdeungpo-gu, Seoul opened, Mr. Park (75) entered holding his wife's hand. It was to subscribe to the Kakao Games IPO. Although the competition rate had already exceeded 400 to 1 the day before, he judged that it was better to receive even a few shares. Having also participated in the SK Biopharm IPO subscription last June and enjoyed a decent return, he willingly deposited 180 million won as the subscription deposit this time as well. He also mentioned keeping an eye on the upcoming listing of Big Hit Entertainment, the agency of the popular idol group BTS, in the second half of this year. He said, "I'm managing my retirement funds, but with interest rates so low, no financial product seemed appealing, so IPO stocks caught my eye. I think it's beneficial to get even one more share and earn a few hundred thousand won."

Unlike the previous day, there was no account issuance at the counter, so there was no line inside the branch, but visitors steadily came in right after opening. Fifteen minutes after opening, the waiting number had already exceeded 10, averaging one visitor every 1.5 minutes. Various customers, including housewives and office workers on vacation, came in small groups. Employees working at Korea Investment & Securities headquarters also took advantage of breaks to apply for subscriptions. Office worker Mr. Kim (29) said, "After seeing the SK Biopharm case, I thought I must participate this time. I plan to invest in most IPO subscriptions going forward."

The popularity of Kakao Games' IPO subscription is heading toward an all-time high. According to Korea Investment & Securities, the lead underwriter, the subscription deposits collected through the underwriters (Korea Investment & Securities, Samsung Securities) and the underwriting company (KB Securities) totaled 16.414 trillion won the day before. This amount surpassed half of the record 30.9889 trillion won set by SK Biopharm on its first day. The combined competition rate recorded 427.45 to 1, surpassing SK Biopharm's final combined competition rate of 323 to 1 in just one day. Considering that more people usually rush in on the subscription deadline, it is expected that an all-time record could be set.

The subscription frenzy caused temporary delays in access to the home trading systems (HTS) and mobile trading systems (MTS) of the underwriting securities firms. Korea Investment & Securities' website also experienced access difficulties. The competition rate had already exceeded an average of 700 to 1. As of 10 a.m., the subscription competition rates were ▲KB Securities 870 to 1 ▲Samsung Securities 740 to 1 ▲Korea Investment & Securities 721 to 1. Even with a competition rate of 700 to 1, investors who deposited 100 million won (8,300 shares at the public offering price of 24,000 won) would only be allocated 12 shares. It is literally like "picking stars from the sky."

Another office worker, Mr. Kim (47), took out a loan secured by his savings to provide 600 million won as a subscription deposit. Mr. Kim said, "If the competition rate rises to 1,500 to 1, I think I will ultimately receive 17 shares. It's not a huge amount, but in these low-interest times, earning even a few hundred thousand won would be a decent return."

Following SK Biopharm, as Kakao Games has sparked a frenzy beyond mere popularity, interest in remaining IPOs in the second half, such as Big Hit Entertainment, is growing. A financial investment industry official said, "With real estate regulations and low interest rates combined, investors are rushing in to earn even slightly higher returns. This is a great opportunity for companies preparing for IPOs in the future."

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