84 New KOSDAQ Listings This Year... Highest in 18 Years

Growth in the IPO Market
Record High for Technology Special Listing
Stock Prices Soar, Averaging 65.1% Increase Over IPO Price

[Asia Economy Reporter Oh Ju-yeon] This year, the number of newly listed companies on the KOSDAQ market, excluding Special Purpose Acquisition Companies (SPACs), has reached the highest level in 18 years.

According to the Korea Exchange on the 28th, the number of newly listed companies on the KOSDAQ market this year was counted at 103. Among them, there were 59 general companies, 25 technology-specialized companies, and 19 SPACs. Excluding SPACs, the number of listed companies set a record high since 2002.

This was thanks to the continued strong growth of the initial public offering (IPO) market despite the COVID-19 pandemic this year. In particular, the number of technology-specialized listed companies was the highest since the system was introduced, providing growth opportunities through listing for innovative companies in various technology fields.

This year, there were 25 technology-specialized listings, marking the highest number since the introduction of the technology-specialized system in 2005. The number of companies applying for the preliminary stage of technology-specialized listing, called 'technology evaluation,' also reached an all-time high of 57 as of the 21st, suggesting that technology-specialized listings are expected to increase next year as well.

The number of companies requesting listing reviews also surged. This year, 160 companies requested listing reviews (137 excluding SPACs), the highest since 2002. Notably, the number of technology-specialized review applicants increased by 96% from 27 last year to 53 this year, setting a record high and driving the increase in KOSDAQ listing review requests.

Meanwhile, the amount raised through public offerings from new KOSDAQ listings this year was 2.6 trillion KRW, similar to previous years. The company with the largest public offering was Kakao Games, which raised 384 billion KRW. Other companies that raised over 100 billion KRW include JNTC (121 billion KRW).

A key characteristic of newly listed companies on the KOSDAQ market this year is the increase in technology-specialized listings among companies not belonging to the bio sector.

Among technology-specialized listed companies outside the bio sector, there were a total of eight companies: three in AI, and five in materials, parts, and equipment (three in nanomaterials, one in semiconductor equipment, and one in safety equipment). The scale, which was only one company in 2016, has been increasing with two companies in 2017, six in 2018, and eight in 2019. In the bio sector, the number of listings of in vitro diagnostic companies increased significantly due to the impact of COVID-19, while the number of new drug development company listings (six companies) remained similar to previous years.

The Korea Exchange explained, "The expansion of listings through technology-specialized systems is continuing, focusing on advanced industrial sectors that will lead the future economic development of our country."

In particular, materials, parts, and equipment companies started with one listing in 2019, and this year, 16 companies were listed on the KOSDAQ through various listing tracks, demonstrating the effectiveness of industrial promotion policies through the capital market.

Additionally, the average year-end stock price increase rate compared to the public offering price for companies newly listed on the KOSDAQ market this year reached 65.1%, the highest in the past 10 years. The proportion of rising stocks also reached 79%. This is analyzed to be due to increased liquidity from global quantitative easing caused by COVID-19 and expanded investment by individual investors such as Donghak Ants.

The Korea Exchange stated, "Going forward, the KOSDAQ market plans to actively support innovative companies in various fields with growth potential and technological capabilities to make significant leaps through listing." However, it added that there is a concern that companies with unverified technological capabilities might pursue listing by riding the trend of increasing new listings through technology-specialized systems. Therefore, the technology-specialized system will be operated with thorough reviews based on objective data on technological level and the profit-generating ability of owned technologies to ensure no gaps in investor protection.

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