Newly Listed Stocks That Heated Up Early in the Year, Underperforming After IPO

Among 6 Companies, Only 2 Stocks Surpass Opening Price... SoluM and NBT Show Decline Trend

[Asia Economy Reporter Song Hwajeong] Rookie stocks that heated up the initial public offering (IPO) market with triple-digit subscription competition rates at the beginning of the year are showing disappointing trends after listing.

According to the Korea Exchange on the 3rd, among the six companies listed this year, only two stocks?Seonjin Beauty Science and Mobirix?closed above their opening prices. The stocks that recorded a ‘ttasang’ (forming an opening price at double the public offering price on the first day of listing and closing at the upper limit) were also only Seonjin Beauty Science and Mobirix. Among the six stocks, five except CNTOOS Seongjin formed opening prices at twice the public offering price but failed to maintain the bullish momentum thereafter.

In the case of SoluM, which entered the KOSPI market yesterday, it closed the day down sharply by 14.26% on the first day of listing. As of 9:30 a.m. that day, it continued its decline for two consecutive days, falling 1,550 won (5.32%). Finger, which was listed on the KOSDAQ market on the 29th of last month, showed a decline of about 3% that day, marking four consecutive days of decline since listing. SoluM and Finger attracted hot interest even before listing, with SoluM recording a demand forecast competition rate of 1,167 to 1, the second highest in KOSPI history, and Finger recording 1,453 to 1, the second highest in KOSDAQ history.

Additionally, NBT fell 33.29% and CNTOOS Seongjin fell 23.34% compared to their opening prices.

The two stocks listed on the KOSDAQ market that day showed mixed results. Rainbow Robotics recorded a ‘ttasang’. Rainbow Robotics formed an opening price of 20,000 won, twice the public offering price, and then surged to the upper limit. On the other hand, Wider Planet formed an opening price of 32,000 won, twice the public offering price, but then fell nearly 15%.

Senior Research Fellow Lee Seok-hoon of the Capital Market Research Institute analyzed, "If the IPO market overheats, there may be an excessive number of individual investors participating in the IPO market solely looking for high returns," adding, "Investors who have sufficiently realized expected returns may sell off their stocks massively, which could cause the market price of public offering shares to plummet sharply after listing."

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