SK Bioscience,’Tasang’ with good news from its debut… 28th in market cap at once

▲ SK Bioscience CEO Ahn Jae-yong and Son Byeong-du, chairman of the Korea Exchange, are taking commemorative photos at the ceremony to commemorate the new listing of SK Bioscience at the Korea Exchange in Yeongdeungpo-gu, Seoul on the 18th. (Photo from left) Young-Hoon Song, Assistant Head of the Korea Exchange Stock Market Headquarters, Sang-Hwan Ahn, Chairman of the Korea IR Council, Woong-Ki Cho, CEO of Mirae Asset Daewoo, Jae-Joon Lim, Head of the Korea Exchange Stock Market Headquarters, Byung-Doo Son, Chairman of the Korea Exchange, Jae-Yong Ahn, CEO of SK Bioscience, and Chan Joong Park, SK Discovery President, Il-moon Jung, CEO of Korea Investment & Securities, Byeong-un Yoon, CEO of NH Investment & Securities IB1 Division, and Young-gyun Kim, Executive Vice President of the Listed Companies Council.ⓒ New Daily

SK Bioscience went directly to the upper limit on the first day of listing on the KOSPI and quickly rose to 28th in the market capitalization (excluding preferred stocks). Investors are interested in whether it will lead to the upper limit price for two consecutive trading days as it has set a record-breaking box office record in public offering stock subscriptions.

According to the Korea Exchange on the 18th, SK Bioscience closed the transaction at 169,000 won, which soared to the price limit (30%).

The initial price on the date of listing was decided at 130,000 won, which is twice the public offering price (65,000 won). At the same time as it opened, it went straight to the upper limit and succeeded in so-called’dasang’. The increase rate compared to the offering price is 160%.

Accordingly, the market capitalization increased from 4,900 trillion won to 12,9285 billion won based on the public offering price. As it quickly entered the 28th place in the market capitalization of the securities market, it surpassed Hana Financial Group (12.4751 trillion won, 29th) and POSCO Chemical (11,4646 billion won, 30th).

If SK Biosciences sells for two consecutive trading days, the stock price could rise to 2197,700 won and the market capitalization of 16,087 trillion won. This is a scale that exceeds SK (17,379 trillion won, 21st) and Shinhan Holdings (18,339.3 billion won, 20th).

There is an interpretation that Jerome Powell, chairman of the US Federal Reserve System (Fed), also had a considerable influence on the success of SK Bioscience.

SK Bioscience was scheduled to list after the regular meeting of the Federal Open Market Committee (FOMC) in March, which was held for two days on the 16th to 17th (local time), so the impact was inevitable. This is because it is difficult for the initial price to double when the market is in a correctional phase, as well as the upper limit on the day. It is a view that if Chairman Powell had not calmed down the controversy over early austerity on this day, disappointing sales would have poured out.

The market predicts that the performance of the Corona 19 vaccine and the clinical results of the Corona 19 vaccine developed in-house will determine the future share price trend.

Han Byeong-hwa, a researcher at Eugene Investment & Securities, said, “If it is possible to launch its own Corona 19 vaccine in the second half of next year, the market cap could increase to the level of 16 trillion to 25 trillion won, like global vaccine companies such as Curevec, Novavex, and BioEntech.” If, in addition to the shingles vaccine, COVID-19 consignment production (CMO) sales are added, this year’s sales and operating profit will increase by 316% and 940%, respectively, compared to last year,” he predicted.

There is also an expectation for a share price rise following the incorporation of the index.

Kim Ji-ha, a researcher at Meritz Securities, said, “It may be difficult to incorporate the MSCI when the MSCI is regularly changed in May due to the low ratio of stocks in circulation (16% when the lock-up is canceled for one month). It is highly probable,” he explained. “Like SK Biopharm, we can expect a positive share price flow from the incorporation of major indices.”

SK Biosciences is a vaccine company established by dividing SK Chemicals’ vaccine business division in July 2018. It is engaged in distribution and sales of vaccine business, and CMO (consignment production)/CDMO (consignment development production) business. As of 2019, sales and operating profit were 183.9 billion won and 22.8 billion won, respectively.