As the financial authorities' improvement plan for Initial Public Offerings (IPO) has been newly applied since last month, rookie corporations that do not want to fall under the pilot case have been postponing the submission of their securities registration statements, meaning there will be no new public offerings for at least about a month.
According to the Korean Exchange's corporate disclosure system Kind, there have been no corporations that submitted securities registration statements to the Financial Services Commission for listing from last month until today.
According to the Financial Supervisory Service electronic disclosure system, Curiosis, Nota, Myung In Pharm, and others that passed the preliminary review for the Korean Exchange for new listings last month have also not yet submitted their securities registration statements to the Financial Services Commission.
This contrasts with June, when eight corporations (excluding SPACs) submitted securities registration statements for new listings.
This seems to be significantly influenced by the newly applied IPO improvement plan since last month. Earlier this year, the Financial Services Commission and other financial authorities introduced improvement measures to prevent short-term trading practices in the IPO market. This improvement plan applies to corporations that submitted securities registration statements from last month.
The key point of the IPO improvement plan is the expansion of the 'commitment to hold by institutional investors (lock-up).' The financial authorities decided to allocate the total amount assigned to institutional investors to those who committed to hold more than 40%. If the application amount from the committed institutional investors falls short of the 40% threshold, the lead underwriter must hold 1% of the public offering amount for six months. The previous commitment hold ratio was 20%. This creates a burden for the lead underwriters.
Meanwhile, Hallacast, JPI Healthcare, Graphy, and Samsung SPAC No. 10 will be participating in general public subscription until today (12th). After the subscriptions for these four stocks are completed, there is expected to be a period without public offering subscriptions in the second half of the year.