SSG.com, Kbank, and Olive Young plan to debut on Kospi this year

[Source : SSG.com Corp.]

SSG.com Corp., Kbank, SK ecoplant Co., CJ Olive Young Corp. and LG CNS Co., are gearing to list their shares on the benchmark Kospi this year and will test investors’ interest in the stock market, which has been in a slump since the initial public offering of LG Energy Solution early last year.

SSG.com, Kbank, and SK ecoplant are attracting interest in the market, according to investment banking analysts. SSG.com oversees the e-commerce operations for Emart Inc. and Shinsegae Group and is streamlining its logistics and making its platform more competitive to enhance corporate value. Kbank is South Korea’s first online bank and SK ecoplant, which started out as a construction entity, is on its way to transform into an environment and energy company.

SSG.com and SK ecoplant are looking to value themselves at 10 trillion won ($7.9 billion) and Kbank is aiming for 6 trillion won. Yet, the recent stock plunge has triggered corporate value reassessments and these companies are not immune from this trend. An IPO director at a securities firm said, “Listing is a challenge unless candidates are ready to lower their market cap target by 34 percent-45 percent compared with 2021. Even big players will have to set realistic goals for a successful IPO.”

LG Energy Solution debuted on the Kopsi last year. [Photo by Lee Chung-woo]

Last year’s IPO market success was only “skin deep.” LG Energy Solution, known to be the largest blue chip, debuted on the Kopsi, but it practically turned out to be a degression for the company. Around 13 companies canceled their listings last year. Even affiliates of large conglomerates such as Hyundai Engineering Co., SK shieldus Co., One Store Corp. and Lionheart Studio Corp. withdrew their IPOs due to lack of demand.

Many predict this year’s IPO market will be more bearish on the absence of favorable conditions to boost the stock market. What is worse, some say higher interest rates may adversely affect the minds of market players.