It was a record year for the South Korean IPO as companies that succeeded in local listings generated more than 16 trillion won ($ 13.8 billion) in revenue, according to data compiled by the sole public operator here on Sunday Has.
The cumulative IPO proceeds of 73 companies listed on the domestic motherboard and tech-heavy exchange this year were 16.01 trillion won on Friday, data from the Korea Exchange showed. This figure not only surpassed the total annual IPO proceeds of last year at 5.94 trillion won, but also exceeded the previous record of 10.1 trillion won in 2010.
Of the 73 publicly traded companies, 13 rose nearly 13.7 trillion won before trading in the Kospi market, while the remaining 60 rallied 2.32 trillion won before debuting on the Kosdaq board.
A number of large companies looking to go public have been driving the IPO market so far this year.
Game developer Krafton achieved 4.31 trillion won from its IPO, the second highest value in local market history. Samsung Life Insurance has won the title of the nation’s largest IPO of all time, valued at 4.89 trillion won since 2010.
Including Krafton, mega deals such as KakaoBank (2.55 trillion won), SK dh Technologie (2.25 trillion won) and SK Bioscience (1.49 trillion won) made significant contributions to the boiling IPO market. The four companies’ total IPO proceeds exceeded 10.6 trillion won.
Car rental service unit Lotte Rental (850.9 billion won), COVID-19 test kit maker SD Biosensor (776.4 billion won), and Singapore-based biopharmaceutical company Prestige Biopharma (490.9 billion won) raised IPO Proceeds worth hundreds of billions of won as well.
With further blockbuster IPOs in the remaining months of the year, the total revenue for 2021 is expected to exceed the 20 trillion won mark, according to market watchers.
Mobile payment app operator Kakao Pay and global shipbuilder Hyundai Heavy Industries plan to raise up to 1.53 trillion won and 1.08 trillion won, respectively, before their market launches. However, battery maker LG Energy Solution’s highly anticipated IPO this year has become uncertain due to General Motors’ recent recall of Chevrolet Bolt electric vehicles.
“Annual IPO proceeds are expected to reach between won 25 trillion and won 30 trillion this year as more companies with market awareness are being prepared for the listing,” said Na Seung-doo, an analyst at SK Securities. “The abundant liquidity environment is very likely to persist in the IPO market throughout the year.”
By Jie Ye-eun ([email protected])