Antibody drug developer Ingenia Therapeutics performed poorly in the retail subscription after institutional investor book-building. Funds have recently flocked to select themes such as semiconductors and artificial intelligence (AI) on the KOSDAQ market, which appears to have dampened investor sentiment toward bio corporations.
On the 31st, according to the financial investment industry, the retail subscription competition rate for Ingenia Therapeutics came to a final 3 to 1. The subscription deposit totaled about 23.2 billion won. The pro-rata allocation basis competition rate was 5.18 to 1. Orum Therapeutics, which listed in Feb. last year, recorded a 2.11 to 1 competition rate in its retail subscription.
It also failed to draw strong demand in the earlier book-building for institutional investors. The book-building competition rate was 50.4 to 1, the lowest among this year's bio initial public offerings (IPO). The final offer price was set at 12,000 won, the bottom of the indicative range. Its market capitalization after listing is about 593.3 billion won.
Ingenia Therapeutics is a corporations holding an antibody drug development platform technology and drew attention as a large offering in this year's bio IPO market.
The result is seen as reflecting a deterioration in investor sentiment toward the bio sector overall, beyond the issues of an individual corporations. The share-price performance of newly listed bio corporations has also been weak, quickly cooling enthusiasm for IPO investments.
HL Genomics, an active pharmaceutical ingredient (API) specialist that listed on the 24th, has continued to weaken since listing and is trading well below its offer price. REMEDI, a medical imaging equipment corporations that entered the market this month, and Lemon Healthcare, a medical data platform corporations, have also seen their share prices fall below their offer prices since listing, adding to investor concerns.
In the stock market, as investment funds concentrate on leading sectors such as large-cap semiconductors, AI, and robots, liquidity in bio stocks is relatively shrinking, analysts said. In addition, controversies over technology exports at some bio corporations and instances of clinical trial failures have heightened investor caution about the growth potential of drug developers and the valuation of corporations.
Ingenia Therapeutics is scheduled to list on the KOSDAQ market on the 18th of next month.