'Ttasangsang' Kakao Games, Subscription Frenzy Leads to Stock Purchases

Net Buying for a Day Hits Second Highest This Year
Concerns of 'Overheating' Emerge in the Market

[Asia Economy Reporter Minji Lee] Individual interest in Kakao Games, which recorded a record subscription deposit amounting to 58 trillion won, continues even after its listing.

According to the Korea Exchange on the 13th, on the 11th in the KOSDAQ market, individuals purchased 2,076,591 shares of Kakao Games. This contrasts with foreigners and institutions who sold 380,000 and 780,000 shares respectively.

[Image source=Yonhap News]

On that day, the net purchase amount by individuals for Kakao Games was 168.4 billion won, making it the second-largest daily net purchase amount in the KOSDAQ market this year. Historically, it ranks as the seventh-largest net purchase amount. On the first day of Kakao Games' listing, the trading volume was limited to 560,000 shares, resulting in a net purchase of 19.6 billion won (314,000 shares), but on the second day, individuals bought up a large volume of shares sold by foreigners and institutions.

Accordingly, following the first day’s 'ttasang' (opening price formed at twice the IPO price followed by a limit-up), the price surged to the daily price limit again the next day, pushing the IPO price from 24,000 won up to 81,100 won. The return compared to the IPO price reached 237.92%. The market capitalization also expanded to 5.9 trillion won, rapidly rising to third place in the KOSDAQ market capitalization rankings.

However, whether the individual net buying trend will continue remains uncertain. Warnings about overheating have already emerged in the market. According to target prices presented by securities firms’ research centers, the highest target price is 42,000 won (Mirae Asset Daewoo), which has already been exceeded by more than double. Kakao Games’ price-to-earnings ratio (PER), which can gauge whether the company’s stock value is overvalued, reaches 411 times.

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