Business · Markets · 2 hrs ago
Seven of 11 South Korean IPOs this month trade below their offer prices
Only four of 11 companies listed this month in South Korea were trading above their offer prices by Oct.
30.
The other seven were below those prices, meaning investors who bought shares in their public offerings and still held them were facing losses.
New listings can start trading well above their offer price, but that early rise may not last.
A brokerage report found that 14 of 16 companies listed in the third quarter were below their first-day opening prices by the end of September, with an average decline of 23.7%.
That pattern helps explain why some investors are advised to sell on the first day, though share prices can vary from company to company.
More companies are expected to seek listings toward year-end, including Musinsa and Sono International, which are undergoing review for a Kospi listing.
MegazoneCloud, Rebellions and Upstage are expected to pursue listings late this year or early next year, while beauty company Goodai Global aims to seek a preliminary review in November.
Seven of the 11 companies that listed on South Korea’s stock market this month were trading below their offer prices, according to Maeil Business.
Only four were trading above their offer prices as of October 30.
Intellivix opened at 19,290 won, more than twice its 9,000-won offer price, and rose as high as 35,350 won during the day.
Creaitz and Elice Group were among the companies trading sharply below their offer prices.
A report cited by the article found that 14 of 16 companies listed in the third quarter were below their opening prices by the end of September.
- Who
- Eleven companies that listed on South Korea’s stock market this month.
- What
- Seven were trading below their offer prices, while four were trading above them.
- When
- As of October 30.
- Where
- South Korea’s stock market.
- Why
- The article says newly listed stocks often weaken after trading at high prices on their first day; it does not state a specific cause for this month’s declines.
This story does not have two clearly opposing sides.
Melcon listed and was trading 11.87% above its offer price.
Elice Group listed and fell more than 30% on its first day before rising to the daily limit the next day.
MS Bio listed and was trading 2.18% above its offer price.
T&E Korea listed and was trading 8.3% above its offer price.
Four of the 11 companies listed this month were trading above their offer prices.
Intellivix listed, opening at 19,290 won against its 9,000-won offer price.
- Companies listed this month
- 11
- Trading below offer price
- 7
- Trading above offer price
- 4
- Intellivix offer price
- 9,000 won
- Intellivix opening price
- 19,290 won
- Third-quarter listings below opening price by September 30
- 14 of 16
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