Business · Companies · 2 hrs ago
South Korean IPO filings face more scrutiny over forecasts and valuations
South Korea’s KOSDAQ listing reviews have sped up in the second half of the year, but companies still face scrutiny from the financial regulator before selling shares to the public.
Five companies were asked to revise IPO filings last month, including businesses in AI, medical technology, telecoms and drug development.
The regulator sought more support for projected earnings, future sales and company valuations, which can be difficult to estimate for firms valued on expected growth.
Three companies delayed their offerings by more than a month after receiving requests; Ucast also lowered its proposed share-price range and valuation.
The exchange checks whether a company qualifies to list, while the Financial Supervisory Service checks whether its filing gives investors adequate information.
The regulator’s requests do not by themselves mean the exchange’s review was inadequate, but industry participants say faster reviews should go alongside careful checks of forecasts and valuations.
The challenge is to support growth-focused listings while protecting investors who rely on those estimates.
South Korea’s Financial Supervisory Service has repeatedly asked companies preparing to go public to revise their securities filings, seeking stronger support for earnings forecasts and company valuations.
Five companies received requests last month: MBD, Xenon, Davio, Ucast and Adele.
Davio and Xenon received two requests each, while Ucast received one, and the three postponed their offering schedules by more than a month.
Ucast lowered its planned offer-price range and valuation, while Xenon reduced its adjusted net profit estimate but kept its planned offer-price range unchanged.
The scrutiny comes as the Korea Exchange has shortened its review time for KOSDAQ listing applications in the second half of the year.
- Who
- The Financial Supervisory Service and five companies preparing IPOs: MBD, Xenon, Davio, Ucast and Adele.
- What
- The regulator requested revisions to securities filings, including better support for forecasts and valuation methods.
- When
- The requests were made last month, according to the article published on November 5, 2026.
- Where
- South Korea.
- Why
- The regulator sought fuller information for investors on matters including forecast earnings, valuation methods and business assumptions.
This story does not have two clearly opposing sides.
The 24 companies approved for listing had an average KOSDAQ preliminary review period of 78.5 business days.
The 39 approved companies had an average review period of 63.8 business days, 14.7 business days shorter than in the first half.
C&M applied for a preliminary listing review and passed it 19 business days later, on October 8.
Taeseok Optical applied for a preliminary listing review and was approved 17 business days later, on October 13.
The regulator requested revisions from MBD, Xenon, Davio, Ucast and Adele; Davio, Xenon and Ucast postponed offering schedules by more than a month.
- Companies receiving revision requests
- MBD, Xenon, Davio, Ucast and Adele
- Xenon adjusted net profit estimate
- Cut from 5.676 billion won to 4.995 billion won
- Ucast planned offer-price range
- Cut from 21,000–26,000 won to 19,000–23,000 won
- KOSDAQ review time
- 63.8 business days on average for 39 companies approved in the second half
- Davio book-building schedule
- Moved from November 2–6 to November 23–27
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What people are saying
Technology special listing evaluates future growth potential rather than current performance, so there are limits to objectively verifying the estimated earnings used to value companies.
There is a need for close coordination at the listing stage so the purpose of the system is upheld while investor protection is ensured.