"IPO Frenzy: 150 Trillion in Q1 Alone... Big Deals Awaiting 'Kabang', 'Cafe', and LG Energy"

Ahn Jae-yong, CEO of SK Bioscience, is celebrating the commencement of trading at the ceremony for the new listing of vaccine development and manufacturing company SK Bioscience on the KOSPI market held at the Korea Exchange in Yeouido, Seoul on the 18th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lee Seon-ae] This year’s initial public offering (IPO) market is boasting an unprecedented frenzy. It is heating up even more than last year, which was already hot. The funds poured into general public subscription for IPO stocks so far exceed the total deposit amount for the entire year of 2019 and have surpassed half of last year’s total within just the first quarter. This IPO market enthusiasm is expected to far exceed last year’s record of 300 trillion won.

According to the financial investment industry and the Financial Supervisory Service’s electronic disclosure system as of the 19th, a total of 24 companies (excluding SPACs and REITs) have entered the IPO market to be listed on the KOSPI and KOSDAQ markets. The total amount of money poured into their general public subscription reached 149.9966 trillion won. This amount is larger than the 96.8 trillion won recorded in 2019, which did not reach 100 trillion won for the entire year. It has also surpassed half of last year’s 295.5 trillion won, which was considered a ‘frenzy’ in the IPO market, within just one quarter.

Although the record-breaking 63.6 trillion won was poured into SK Bioscience alone, funds directed to other stocks also approach 90 trillion won. There are six stocks, including SK Bioscience, that attracted deposits exceeding 5 trillion won, which is half the number of such stocks last year (12 stocks).

On the 2nd of last month, SoluM, which was listed on the KOSPI market, attracted 12.4 trillion won, and Prestige BioPharma, which started trading on the 5th of last month, gathered 11.6 trillion won. NeoImmuneTech, listed on the KOSDAQ market on the 16th, attracted 9.3 trillion won. NBT, the first IPO market player this year (listed on January 21), raised 6.9 trillion won, and iQuest (listed on February 2) raised 6.2 trillion won.

As money poured in, the competition rate to secure even one share became fiercer. Among the 24 stocks, 14 had a general public subscription competition rate exceeding 1000 to 1. NBT recorded the highest competition rate ever at 4397 to 1, surpassing the previous record held by Iruda last year (3039 to 1). iQuest showed a rate of 2853 to 1, and Genoco, which will be listed on the 24th, recorded 2095 to 1.

The stock prices of newly listed stocks did not disappoint expectations. Among the 24 stocks, 21 have been listed so far, and only one stock, CNTOOS Seongjin (offering price 32,000 won, closing price 28,700 won), closed below the offering price on the first day of listing.

Including SK Bioscience, five stocks recorded a 160% return on the first day of listing, and 13 stocks had returns exceeding 50%. Even just selling the IPO stocks on the first day of listing after receiving them can easily yield high returns. This is also why money is pouring into the IPO market.

The IPO frenzy is expected to continue. This is because ‘big fish’ such as Krafton, a game company well known for the global hit game ‘Battlegrounds,’ Kakao subsidiaries Kakao Bank, Kakao Pay, Kakao Page, and LG Energy Solution, which spun off from LG Chem’s battery business, are waiting in line.

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