This article was displayed on the ChosunBiz MoneyMove site on June 25, 2025, at 4:03 p.m.
Corporations aiming for an initial public offering are speeding up their public offering processes after clearing the Korea Exchange listing review threshold. Daehan Shipbuilding submitted a securities registration statement just a day after receiving preliminary approval for listing, and other companies recently approved for review are expected to enter the public offering process within this month.
According to the financial investment industry on the 25th, Daehan Shipbuilding, a mid-sized shipbuilding company pushing for a listing on the stock market, submitted a securities registration statement to the Financial Services Commission the day before, starting the listing public offering process. This came just one day after receiving preliminary review approval from the Korea Exchange on the 23rd.
Automotive parts company Hallacast and artificial intelligence data analysis service company S2W, which cleared the preliminary review threshold for the KOSDAQ market the day before, are also expected to enter their public offering processes early. It is reported that they have set a date to submit their securities registration statements to the Financial Services Commission today.
Analysts suggest that corporations are entering a race against time to resolve uncertainties. Starting from July, companies submitting securities registration statements will be subject to updated demand forecasting systems which include expanded mandatory holding ratios for institutional investors. However, firms submitting their securities registration statements within this month are not subject to this.
Financial authorities decided to reform the initial public offering demand forecasting system, saying they will eliminate the practice of institutional investors realizing profits by selling publicly offered stocks on their listing date after receiving high bids. Starting in July, more than 40% of the allocated amount for institutions will be preferentially assigned to mandatory holding commitment institutions.
An official in the securities industry noted, "In the new demand forecasting system, if the mandatory holding commitment amount falls below 40%, the lead manager must acquire 1% of the public offering amount and hold it for half a year," adding, "There is a growing sentiment among corporations and lead managers to proceed with public offering processes in June if possible."
This means that from July, institutions will have to be more meticulous in their subscriptions, which is expected to help alleviate the phenomenon of inflated public offering prices.
Daehan Shipbuilding has become the fastest corporation to enter the public offering process among those that received listing review approvals this year. Starting with AU BRANDZ, which received the first review approval this year, 25 general listing corporations, including Graphy, submitted their securities registration statements within an average of 30 days after approval.
The market is also considering the possibility that S&SYS, a specialist in shipbuilding equipment, and JPI Healthcare, a digital X-ray imaging solution provider, which have yet to submit their securities registration statements, will likely file them within this month. These two companies obtained preliminary review approval on the 19th.
The pressure to endure a market contraction if the securities registration statement is missed in June is also fueling this race against time. Because of mandatory holding commitments, those who obtained shares through participation will be unable to engage in other public offerings, which could lead to reduced participation in demand forecasting.
An official working in the IPO institutional sector remarked, "It is true that there have been ongoing price proposals to secure volume, but shouldn't we avoid immediate downpours?" adding, "This week, more than six corporations, including Daehan Shipbuilding, might flock to submit their securities registration statements."