Domestic contrast agent specialist Dong Kook Lifescience failed to attract interest from institutional investors in its final publicly offered price during the demand forecast.
According to the investment banking (IB) industry on the 31st, Dong Kook Lifescience confirmed its final publicly offered price at 9,000 won from a demand forecast conducted for institutional investors between the 20th and 24th. This is below the desired price range (12,600 to 14,300 won). Consequently, the amount of capital raised has decreased from approximately 28.6 billion won at the upper end of the band to 18 billion won. The market capitalization after listing is at about 143.9 billion won.
In this demand forecast, 81.1% of the participating organizations proposed a price below the lower end of the band based on the number of entries. Based on the number of applications, it was about 68.9%. The demand forecast competition ratio was recorded at 117.83 to 1. There were only four commitments to hold.
Dong Kook Lifescience was established in May 2017 by spinning off the contrast agent sector of Dongkook Pharmaceutical. It currently engages in the distribution business of contrast agents, diagnostic equipment, and medical devices (MEMD). Contrast agents are drugs that facilitate the clear viewing of diagnostic areas such as the abdomen, blood vessels, and tissues in imaging diagnostics including CT and MRI. Last year's consolidated cumulative sales and operating profit for the third quarter were 100 billion won and 9.5 billion won, respectively, marking increases of 10.9% and 42.4% compared to the same period the previous year.
Dong Kook Lifescience plans to go public on the KOSDAQ market on the 17th after conducting a subscription for individual investors on February 5-6. The lead underwriter for the listing is NH Investment & Securities.