A patent for a "method for providing an IPO index to evaluate IPO public offering investment returns," which can quantitatively analyze and evaluate the investment performance of newly listed corporations, has been registered with the Korean Intellectual Property Office (registration No. 10-2905827).
The inventor and patent holder is Ko Seong-min, head of Peter & Partners, and the applicant is the corporations consulting firm Peter & Partners. The company said the scope of claims and rights protection has broadened, increasing the likelihood of displaying an "IPO index" and commercializing it.
The indicators consist of three indexes: K-IPO, which shows investment returns based on the current share price relative to the offering price; K-IPO VOL, which measures market interest and the rate of increase in corporate value through changes in market capitalization before and after listing; and K-IPO EPS, which evaluates a corporation's profitability and soundness by comparing changes in earnings per share (EPS) at the time of the offering and after listing.
The technology calculates the average public offering investment return, the average rate of increase in corporate value, and the average value of profitability indicators for corporations listed within a given period, and it also includes a model that temporarily excludes stocks from the index when a large volume of shares under lockup is released. This allows investors to see the pure trajectory of the IPO market with overhang risk removed.
Jeong Yu-nak, a patent attorney and head of On Patent Law Office, who handled the patent registration, said, "It is characterized by reflecting the locked-up share volume in the index calculation," adding, "By considering the possibility of share price dilution that may occur upon lockup expiration, it can serve as a practical IPO investment indicator."
Ko said, "About 100 corporations go public annually and the IPO market reaches 20 trillion won, but standardized IPO market indicators that investors can reference have been lacking," adding, "We plan to link this patented technology with financial information platforms to provide an 'IPO investment barometer' that serves as a basis for decision-making for public offering investors."