IPO bull market expected in June

South Korea’s initial public offerings (IPO) market is expected to heat up, as 21 local firms are slated for IPOs this month. So far, the IPO market has been led by special-purpose acquisition companies (SPACs), which are to be listed on the junior bourse KOSDAQ. However, this year, it is forecast to experience an exceptional boom, as large companies including Mirae Asset Life Insurance, SK D&D and Kyongbo Pharmaceutical jump into the market.

According to financial investment industry sources Tuesday, a total of 21 firms are poised for IPO subscription this month. Unlike last year when the IPOs by large companies were mostly made by year-end, this year, a series of large companies are planning their IPOs in the first half.

Of the IPO stocks, most noteworthy is Mirae Asset Life Insurance this month. Its IPO price is expected to range between 382.3 billion won ($345 million) and 454 billion won. Its expected market capitalization stands at 1.45 trillion won on the basis of the targeted IPO price ceiling (8,200 to 10,000 won).

As a life insurer's listing would come in five years after Samsung Life Insurance went public on the main bourse in 2010, Mirae’s future stock performance would draw plenty of attention.

The planned IPO of Kyongbo Pharmaceutical, a pharmaceutical material supplier, is valued at between 124.3 billion won and 143.4 billion won. Its market value comes to 359.6 billion won based on the upper end of the targeted IPO price band.

SK D&D, the nation’s first property developer to go public, plans to raise 59.6 billion won to 71.7 billion won through the IPO.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]