129 New KOSDAQ Listings This Year... Highest Since IT Bubble

The public offering amount is 3 trillion won, down 580 billion won from last year
New listings on the KONEX market doubled compared to last year

[Asia Economy Reporter Son Sun-hee] A total of 129 companies newly listed on the KOSDAQ market this year, marking the highest number since 2002, the so-called 'IT bubble period.' However, excluding Special Purpose Acquisition Companies (SPACs), the number was 84, down by 7 from last year's 91.

The Korea Exchange announced on the 28th the '2022 KOSDAQ Market New Listing Status' with these details. Among the 129 new listings, general companies accounted for the largest number at 56, followed by 45 SPACs and 28 technology companies.

Technology companies refer to those listed under the technology special case system introduced in 2005. This is the second-largest number ever, following last year's 31 companies. The total number of companies that applied for the 'professional institution technology evaluation,' a preliminary step for technology special case listing, was 80, the highest since the introduction of the technology evaluation.

Although the number of newly listed companies on KOSDAQ this year reached a record high, the amount raised through public offerings decreased by about 580 billion KRW compared to last year, totaling 3 trillion KRW, due to reduced investment demand in the IPO market. The company with the largest public offering size was 'DoubleWPC,' raising a total of 423 billion KRW. Other companies that raised over 100 billion KRW through public offerings included Sungil Hightech (135.5 billion KRW). A Korea Exchange official explained, "The public offering amount decreased more than initially expected as some large companies withdrew their offerings due to poor demand forecasts."

This year, 45 SPACs were listed, marking the highest performance since the related system was introduced in 2009. This is about twice the number from last year (24 companies). SPACs are nominal companies (paper companies) whose sole business objective is to merge with other companies after issuing shares through public offerings. The Korea Exchange explained that as the IPO market stagnated due to factors such as US interest rate hikes, demand for listings through SPAC mergers, which can skip the public offering process, increased. Additionally, the introduction of the 'SPAC extinction merger' system in February, which allows the merged company (unlisted company) to maintain its corporate status, was also a major reason for increased corporate preference for SPACs.

By industry, following last year, the 'software' sector had the most new listings with 15 companies. Notably, companies providing AI video analysis and anomaly detection services stood out. Furthermore, supported by government policies for semiconductor-related 'SoBuJang (materials, parts, and equipment)' companies, the entry of related technology companies into the KOSDAQ market was also active.

A Korea Exchange official stated, "Despite the IPO market downturn caused by the US base rate hike amid COVID-19 this year, the number of new KOSDAQ listings reached the highest since 2002, supporting smooth funding for small and medium venture companies. We plan to continue active support so that innovative companies with high technology and potential, as cradles of new growth industries, can achieve good results."

Meanwhile, 14 companies newly listed on the KONEX market, which targets relatively smaller companies, doubling last year's 7. The Korea Exchange emphasized the significance of the increase in KONEX listings this year, reversing a five-year decline since 2016 (50 companies). This is interpreted as the effectiveness of the KONEX market revitalization measures jointly announced by the Korea Exchange and the Financial Services Commission earlier this year.

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