Since the fourth quarter began, returns on newly listed rookie stocks have been strong, warming up the IPO market. In the securities industry, there is growing expectation that the favorable IPO breeze will continue for the time being.
According to the Korea Exchange (KRX) on the 7th, from October to the 5th of this month, the average return compared with the offering price for 11 companies newly listed on the KOSPI and KOSDAQ markets (excluding REITs and SPACs) was 129.4%.
This far outpaces returns on the KOSPI (19.7%) and KOSDAQ (9.8%) over the same period.
By stock, AimedBio (420%) had the highest return. It was followed by Nota AI (389%), Curiosis (225%), INNOTECH (157%), and Aromatica (108%) in that order.
Specifically, looking at the closing price on the first day of listing, the 11 stocks rose an average of 127% from the offering price. Two of the 11 achieved "double-double (four times the offering price)" on the first day of listing. Four achieved "double (twice the offering price)."
Compared with the third quarter, fourth-quarter returns for newly listed stocks are notable. In the third quarter, the average first-day return compared with the offering price for 16 corporations newly listed on the KOSPI and KOSDAQ markets was 47%.
Kim Su-yeon, an analyst at Hanwha Investment & Securities, said, "Since the second half, institutional investors have had to commit to lockups to receive priority allocations, so the circulating supply in the market right after listing is limited, and IPO prices are rising quickly."
In the securities industry, there is an outlook that the warmth in the IPO market will continue for the time being.
Park Jong-seon, an analyst at Eugene Investment & Securities, said, "The IPO market in December will continue the boom from last month," adding, "It is a typical peak season, and many corporations that had been on the sidelines under the IPO regulatory changes newly applied since July are pushing ahead with IPOs following last month."