At the beginning of this year, there were projections that newly listed corporations centered on the KOSPI would likely lead the atmosphere in the initial public offering (IPO) market.
According to SK Securities on the 8th, the 2024 IPO market was essentially finished as a damp squib. Throughout 2024, the number of newly listed corporations was 75 (excluding SPAC new listings and mergers, and transfers and relistings), which was not significantly different from the average year.
However, as of the end of 2024, the simple average return after listing recorded a minus (-) 16.9%, showing somewhat disappointing stock price movements after listing. Only two corporations (WOOJIN Ntec and JUNJIN Construction Robot) maintained a return of over 100% until the end of the year.
Na Seung-du, a researcher at SK Securities, noted, "For general investors participating in the IPO subscription in 2024, actively realizing profits on the day of listing was the most efficient investment method," adding, "The problem is that this was not easy as we entered the second half of the year." The simple average return on the day of listing for new corporations in 2024 reached 41.1%.
He further stated, "Depending on the success of LG CNS, there may be some impact on the direction of the annual IPO market, but it is cautiously believed that expectations for a favorable IPO market can still be maintained regardless of this."
In December, other major corporations like DN Solutions and Lotte Global Logistics passed preliminary listing reviews. Consequently, the likelihood increased that newly listed corporations centered on the KOSPI would lead the atmosphere in the IPO market. Additionally, sector corporations like TXR Robotics are expected to draw investors' attention ahead of their IPO market debut.
The researcher remarked, "The start of 2025 is very lively. Recently, the number of companies conducting demand forecasts in January is at its highest level in five years, and continuous launches of major corporations led by LG CNS are also anticipated." He added, "However, the share of circulating volume centered on professional investors immediately after listing is a point that should be closely monitored."