[Weekly HOT Stocks] Kyochon F&B Listed on KOSPI...Increase in Individual Net Buying Pressure

General Subscription Competition Rate Sets New KOSPI Record at 1318.30 to 1

On the 12th, the Kyochon F&B KOSPI listing ceremony was held at the Korea Exchange in Yeongdeungpo, Seoul. (Photo by Korea Exchange)

[Asia Economy Reporter Kum Boryeong] On the 12th, Kyochon F&B, the number one chicken company, attracted investors' attention by listing on the KOSPI market.

According to the Korea Exchange on the 14th, Kyochon F&B closed at 29,450 KRW the previous day.

Kyochon F&B, which was listed on the KOSPI on the 12th, hit the daily upper limit and closed at 31,000 KRW. The closing price was about 2.5 times the public offering price (12,300 KRW). The opening price was 23,850 KRW.

Kyochon F&B showed success even before listing. The general subscription competition rate held on the 3rd and 4th was 1,318.30 to 1, surpassing Big Hit Entertainment and setting a new KOSPI record. Big Hit's general subscription competition rate was 606.97 to 1.

In the institutional investor demand forecast, Kyochon F&B's competition rate was as high as 999.4 to 1. The public offering price was set at the top end of the desired price band (10,600 to 12,300 KRW).

Kyochon F&B is a franchise company gaining great popularity based on its Honey series and Red series. Nam Seonghyun, a researcher at Hanwha Investment & Securities, explained, "I believe the significance of Kyochon F&B's listing is great," adding, "It is the first direct listing of a franchise, and it is expected that a reevaluation of the franchise industry will take place. It can be seen as primary proof that the industry structure has shifted to a structure capable of generating stable performance, unlike in the past."

Individual investors bet on the rise by net buying Kyochon F&B stocks worth 73.7 billion KRW over two trading days from the 12th to the 13th. During this period, Kyochon F&B ranked third among the top stocks net bought by individual investors on the KOSPI.

Lee Hyukjin, a researcher at Samsung Securities, analyzed, "For franchise companies, the scale of franchise store openings and the sustainability of stores will be key investment indicators. Kyochon F&B is differentiated in both aspects," adding, "As of August this year, it opened 1,234 domestic and 36 overseas franchise stores, and the average sales per store is 620 million KRW annually, which is twice the industry average. The sales differentiation led to store sustainability. Kyochon F&B's closure rate is as low as 0.5%, which is overwhelming compared to competitors BBQ at 11.2% and BHC at 5.1%."

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