This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:02 p.m. on Apr. 21, 2026.
The initial public offering for STRADVISION, an Autonomous Driving software specialist, on the KOSDAQ market has hit a red light. Financial investors (FIs) who entered near past peaks executed large-scale loss-protection refixing (conversion price adjustments), leaving nearly half of the issued shares tradable on the listing day and saddling the deal with supply-demand risk.
According to investment banks (IBs) and the financial investment industry on the 21st, STRADVISION set the number of shares tradable on the listing day at 26,075,572, or 48.97% of the total expected listed shares. That means nearly half of all shares could trade on day one, the highest listing-day float ratio among corporations seeking listings this year.
Typically, the listing-day float ratio is set around 30%. When buying interest is limited and sell orders are excessive, there is a risk the stock could plunge right after listing. IMBiologics, which listed last month, even capped its listing-day tradable shares at 24% of the total.
Frequent external fundraising is cited as the cause. STRADVISION, founded in 2014, specializes in developing and supplying AI recognition software for automobiles. To raise development funds and more, it successively issued redeemable convertible preferred shares (RCPS) and bonds with warrants (BW), injecting more than 300 billion won.
Most major investors opted for early recovery of funds instead of lockups. Even Hyundai Mobis, Hyundai Motor, and LG Electronics, classified as strategic investors (SIs), did not commit to lockups. Of the shares tradable on the listing day, 19,075,572 shares, or 73.15%, were counted as holdings by existing shareholders such as institutional investors.
Refixing compounded the issue. The share count surged after FIs who invested at past peaks exercised their down-round refixing rights. Private equity fund (PEF) manager LSS Private Equity (LSS PE), among others, also did not commit to lockups for the additional shares created by refixing.
Specifically, the 4-1 RCPS tranche of about 40 billion won invested by LSS PE and others in July 2021 increased significantly due to refixing. The per-share price, initially set at about 1.46 million won for the investment, was lowered to around 1.05 million won in subsequent rounds, and was adjusted to the pricing of the follow-on fundraising.
The 4-1 RCPS share count rose from about 27,000 initially to 37,845 after conversion into common stock. That was an increase of nearly 40%, and after a 100-for-1 stock split, the 4-1 RCPS finally became 3,785,400 shares. In effect, 15% of STRADVISION's listing-day float swelled due to refixing.
Aptiv, the largest shareholder and a global mobility supplier, also increased its holdings via refixing. The 4-2 RCPS tranche that Aptiv acquired with an investment of about 68 billion won in May 2022 rose from an initial 46,000 shares to 64,739 shares after refixing. However, Aptiv committed to a three-year lockup for all its shares.
Potential shares are also seen as an obstacle to IPO success. Stock options granted to STRADVISION executives and employees alone amount to 2,104,900 shares. Of these, 1,885,250 shares can be exercised within one year after listing. The exercise prices are 665–2,500 won, well below the IPO price range (12,400–14,800 won).
An official in the securities industry said, "The recent stock market rally and IPO boom are positive, but if sell orders are excessive, the stock price can nosedive, so new investors should be cautious," adding, "There is also a high possibility that most FIs who lowered their per-share prices through refixing will move to recover their investments en masse on the listing day."
Meanwhile, STRADVISION will raise 7 million new shares in this offering. It presented an indicative IPO price range (band) of 12,400–14,800 won. Based on the top end of the band, the offering size is estimated at 103.6 billion won, with a post-listing market capitalization of about 788 billion won. KB Securities is the lead underwriter.