IPO Stocks Amid Market Plunge, Am I Shaking?

Concerns Over Demand Forecast Impact Due to Stock Market Plunge
Jeonjin Construction Robot, KSR AI, TDS Pharm, M83, Encell Preparing for IPO
Low Likelihood of Public Offering Price Above Upper End of Desired Range

As the domestic stock market plunges, it is expected to impact the initial public offering (IPO) market as well. Preliminary listed companies awaiting demand forecasting, such as TDS Pharm, M83, Encell, and Icecream Media, are increasingly likely to set their public offering prices lower than expected.

According to the financial investment industry on the 6th, Uracle, which conducted demand forecasting over five business days from the 29th of last month to the 2nd of this month, finalized its public offering price at 21,000 KRW. Among institutional investors participating in the demand forecasting, 95.9% proposed a subscription price at or above the upper limit of the desired price range (18,000?21,000 KRW).

Founded in 2001, Uracle is a company that provides optimized mobile application (app) development, operation, and maintenance services for enterprises. It has carried out over 1,000 projects in the mobile app development platform market to date.

An investment banking (IB) industry official said, "Uracle will conduct a public subscription for general investors over two days starting from the 6th," adding, "The subscription competition rate will help gauge the atmosphere of the IPO market."

The KOSDAQ index fell by 11.3% the previous day, dropping below the 700-point mark. It is difficult to expect the same enthusiasm for public subscription as in the first half of this year.

Concrete pump truck specialist Jeonjin Construction Robot and extended reality (XR) middleware solution developer K3AI completed their demand forecasting on the 5th. Due to the stock market's sharp decline on the last day of demand forecasting, institutional investors are expected to have approached more conservatively than before.

Transdermal drug delivery system (TDDS) developer TDS Pharm is conducting demand forecasting until the 6th and will announce the public offering price on the 8th. Visual effects (VFX) company M83 and cell and gene therapy contract development and manufacturing organization (CDMO) Encell will complete their demand forecasting on the 7th and 8th, respectively.

If preliminary listed companies awaiting demand forecasting receive lower-than-expected corporate valuations and postpone their listings, the IPO market atmosphere could quickly freeze. The IB industry, which is waiting for major public offerings such as Curly, Oasis, Seoul Guarantee Insurance?which withdrew their listings last year?as well as LG CNS, SK Ecoplant, Hyundai Oilbank, SSG.com, Kakao Mobility, 11st, and Yanolja, expressed concerns that the market plunge would dampen enthusiasm. If the stock market decline continues, major public offerings preparing for listing, such as K-Bank and MNC Solution, may postpone their listing schedules.

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