The Atmosphere from Subscription to the First Day of Listing... Divergent Paths of Ssocar and Daesung Hitech

Socar's IPO Price Falls During Trading
Daesung Hitech Rises 15.77%
Future Stock Prices Diverge

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The fortunes of car-sharing company 'Socar' and secondary battery manufacturing equipment specialist 'Daesung Hitech,' both entering the stock market on the same day, are diverging. The contrasting atmosphere from demand forecasting and subscription continues into the first day of trading.

Daesung Hitech, which debuted on the KOSDAQ on the 22nd, was trading at 15,050 KRW as of 9:26 AM, up 15.77% from its public offering price. On the other hand, Socar, which entered the KOSPI on the same day, started trading at its public offering price of 28,000 KRW but experienced a setback as the price fell below the offering price early in the session. It dropped to as low as 27,150 KRW during the session but was trading at 28,400 KRW as of 9:34 AM, up 1.43% from the public offering price.

The contrasting fortunes during demand forecasting and subscription are continuing into the first day of listing. Daesung Hitech set records with a general subscription rate of 1,136.44 to 1 and an institutional investor demand forecast ratio of 1,935 to 1, leading to the public offering price being set at the upper end of the price band at 9,000 KRW. However, Socar faced controversy over overvaluation, with a demand forecast competition rate of only 56.07 to 1 among institutional investors. With 74.5% of institutions concentrated below the lower end of the price band at 34,000 KRW, the public offering price was set at 28,000 KRW, a 38% discount from the highest end.

The outlooks for the two stocks also differ. KB Securities analyst Lee Kyung-eun said, "Socar is the number one car-sharing platform company in Korea, holding a 79.6% market share, making it an oligopoly company," adding, "If competition intensifies within the mobility platform market, there is a risk of market share decline and consequent profitability deterioration."

Yujin Investment & Securities analyst Park Jong-sun stated, "Daesung Hitech's 25 years of experience and 75 years of technological expertise underpin stable earnings growth, with expansion in precision parts businesses for electric vehicles, hydrogen vehicles, and defense sectors being key investment points," and assessed, "The public offering price corresponds to a price-to-earnings ratio (PER) of 7.8 to 9.5 times based on this year, which is significantly discounted compared to peers."

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