Just Listing Leads to Collapse... Shaking the Unbeatable IPO Market, a 'Jumjum Opportunity?'

7 Listed Companies This Year Have Current Stock Prices Below IPO Price
Warning for IPO Investments... Opportunity to Buy Promising Stocks

[Asia Economy Reporter Lee Seon-ae] An unusual trend is emerging in the IPO market. Despite the scorching subscription competition rates reaching thousands to one, a series of sharp declines on the first day of listing have triggered red flags for IPO investment returns. Following the failure and sharp drop of the 'big fish' SK IE Technology (SKIET) to achieve a "ttasang" (opening price set at twice the IPO price followed by hitting the upper limit), small and mid-cap stocks listed this month have shown a sluggish price trend, shaking the 'undefeated myth' of IPO investments. While the market is calling for selective investment in IPOs, there is also advice to use the cooling-off period as a buying opportunity for promising stocks.

According to the Korea Exchange on the 20th, Sam CNS was newly listed on the KOSDAQ market that day. The opening price was set at 6,400 KRW, below the IPO price of 6,500 KRW. Although it dropped to 6,230 KRW in early trading, falling below the IPO price, it rose again to 7,030 KRW as of 9:12 AM.

While Sam CNS’s stock price needs to be observed until the close, the stock performance of companies listed this month is dismal. For example, CNC International, which was listed on the 17th and recorded a subscription competition rate of 898 to 1, had an opening price (47,250 KRW) set below the IPO price (47,500 KRW) and eventually closed at 41,150 KRW, down 12.91%. On the second day of listing, the 18th, it closed at 41,900 KRW, up 1.82% from the previous day but still below the IPO price. Investors who received shares at the IPO price suffered an 11.78% loss.

HPIO, listed on the 14th, recorded a subscription competition rate of 95 to 1 but had an opening price of 20,000 KRW, below the IPO price of 22,200 KRW, and closed much lower at 16,750 KRW. On the 18th, it was still 18.47% below the IPO price at 18,100 KRW.

Among the 29 companies newly listed this year (excluding SPACs, transfers, and REITs), seven companies currently have stock prices below their IPO prices. These include HPIO, CNC International, CNTUS Sungjin, Prestige Bio Pharma, Vuno, Nano CMS, and Life Semantics.

Accordingly, the market interprets this as a sign that the overheated IPO market is cooling down and advises selective investment. An industry insider said, "For the time being, demand forecasts and subscription competition rates for IPOs may decrease. Especially since SKIET sparked controversy over IPO price overvaluation, we need to watch the IPO prices of SK Biosensor, Krafton, Kakao Pay, and Kakao Bank, which are currently under valuation debate."

However, there is also advice to actively take advantage of 'jupjup' (buying up) opportunities. An industry insider said, "Due to the competition rate, even if you put in a large deposit during the IPO subscription, it is difficult to receive more than a few shares. Therefore, for promising growth stocks whose prices have fallen after listing due to the release of shares, it would be good to approach them as buying opportunities."

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