At the time of the general subscription to Kakao Games in September last year, investors consulted on the subscription at the Korea Investment & Securities branch in Yeouido, Seoul. yunhap news.
Last year, the public offering stock subscription market was as hot as the apartment subscription. The general subscription competition rate reached an average of 957 to 1 due to IPOs of Daeeo such as Big Hit Entertainment and Kakao Games. Eruda, a skin beauty medical device company, entered the stock market with the highest subscription rate (3039 to 1).
According to the ‘2020 IPO market analysis and precautions when investing in public offerings’ released by the Financial Supervisory Service on the 18th, last year’s IPO companies were 70 (5 KOSPI, 65 KOSDAQ), a slight decrease from the previous year (73). However, as large IPOs such as Big Hit are crowded, the size of the public offering was 4.6 trillion won, up 40.6% from a year ago (3.2 trillion won).
Last year, the average subscription competition rate of 70 listed companies was 956:1. Due to the crowd of investors, the threshold for offering public offerings has nearly doubled compared to the previous year (509:1). The Financial Supervisory Service analyzes the impact of investors’ interest in public offering stocks as investor sentiment recovered from the stock market rebound in the second half of last year.
The No. 1 company in the subscription competition rate is Iruda, which was listed on the KOSDAQ in August last year, and the competition rate reaches 3039:1. Younglimwon Soft Lab (2493 to 1), Pharma Korea (2035 to 1), Point Mobile (1843 to 1), and Hana Technology (1802 to 1).
Not only general investors but also institutional investors competed fiercely. An average of 1074 institutional investors flocked to the IPO demand forecast last year. It was 28% higher than a year ago (841 locations). As the competition rate for demand forecasting of institutions (871 to 1) increased, the offering price also increased. Of the IPO companies that predicted demand last year, 56 IPO companies have decided to offer prices above the top of their desired offering price (band). This is because an institutional investor placed an expensive buy order to receive one more week.
There are also voices of concern about the conspiracy bubble. The Financial Supervisory Service said, “Even if the offering price is decided due to high market interest, it does not guarantee high returns after listing. When investing in a public offering stock, you should carefully look at the future business plans of the offering stock and investment risk factors.” In fact, among the 56 companies whose offering price was above the top of the list last year, 8 companies whose share price fell below the offering price as of the end of last year.
Reporter Yeom Ji-hyun [email protected]