Newly Listed Stocks Soar Amid Stock Market Boom

Nine Companies Went Public in November, Seven Trading Above IPO Price
"Buoyant Market and Mandatory Holding Commitment System Limit Available Shares"

As the domestic stock market continues to boom, the share prices of newly listed companies are also soaring. The implementation of the 'Mandatory Holding Commitment Priority Allocation System,' which has reduced the volume of shares available for trading, has also played a role.

According to the Korea Exchange on December 5, among the companies listed last month (excluding SPACs, REITs, and spin-offs), there were nine stocks, including Nota, Innotech, and Curiosis. Of these, seven stocks are currently trading above their initial public offering (IPO) prices.

According to Eugene Investment & Securities, the closing price return on the first day of trading for the nine stocks listed in November averaged 142.9% compared to their IPO prices. Nota recorded the highest increase, with its IPO price at 9,100 won and its closing price on December 4 reaching 42,500 won, representing a surge of 367.03%. Curiosis followed with a 255.45% increase, and Aromatica with 124.38%. In contrast, The Pinkfong Company and Sena Technologies traded below their IPO prices.

The strong performance of newly listed stocks is attributed to the bullish stock market. Since the second half of this year, both the KOSPI and KOSDAQ indices have risen sharply. The KOSPI climbed from 2,300 to 4,000, and the KOSDAQ from 700 to 900, creating a highly liquid environment.

Park Jongseon, a researcher at Eugene Investment & Securities, stated, "A key feature of the IPO market in November was that returns reached an all-time high," adding, "Additionally, the proportion of institutional demand forecasts at the upper end of the IPO price band reached 100% for three consecutive months, indicating a boom, and the average competition ratio for general subscriptions was also at a record high."

Furthermore, the implementation of the 'Mandatory Holding Commitment Priority Allocation System' is also seen as contributing to the rise in new stock prices. This system requires that at least 30% of the IPO shares allocated to institutional investors be prioritized based on the length of their holding commitment. The financial authorities introduced this system to curb overheating in the IPO market.

Kim Suyeon, a researcher at Hanwha Investment & Securities, explained, "Because the trading volume immediately after listing is low, IPO prices are rising rapidly," and added, "The average one-month return for stocks listed this year is 41%, but for those listed in November, the average return at the end of November compared to the IPO price was 110%, more than double."

The securities industry expects the boom to continue into December. According to Eugene Investment & Securities, the number of companies expected to go public in December 2025 is between 20 and 24. This is significantly higher than the historical monthly average of 17 companies from 1999 to 2024, and the recent five-year average of 15 companies.

Researcher Park Jongseon said, "We expect the IPO market in December this year to continue the boom seen last month," adding, "This is because, during the typical peak season, companies that had been waiting due to new regulations applied since July are now moving forward with their IPO plans."

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