The domestic stock market's upward trend is bringing renewed energy to the initial public offering (IPO) market. The number of companies applying for or receiving preliminary approval for new listings in the first half of this year has increased by 56.7% compared to last year, raising expectations for a recovery in the public offering market.
According to the Korea Exchange's electronic disclosure system (KIND), from January 2 to June 18, a total of 47 companies have applied for or received approval for preliminary listing reviews. This marks an increase of 17 companies from 30 during the same period last year, resulting in a growth rate of 56.7%.
Notably, the rise in applications is particularly pronounced among traditional companies, excluding special purpose acquisition companies (SPACs). The number of traditional companies has grown from 24 last year to 39 this year, a 62.5% increase. This indicates that the expansion of the IPO market is not limited to SPACs but is spreading across traditional businesses.
Industries such as artificial intelligence (AI), biotechnology, semiconductors, and robotics are actively pursuing IPOs. Companies like MBD, Intellibix, Skylabs, and Ingenia Therapeutics have submitted applications for preliminary reviews, with some already passing the review process and moving forward with their listings.
Market analysts attribute the recovery in the IPO market to the recent rebound in the stock market and improved investor sentiment. The easing of corporate valuation pressures and increased demand for public offerings are contributing factors.
A representative from the Korea Exchange stated, "The recent boom in the securities market has led to an influx of funds into the public offering market, resulting in an increase in applications from companies seeking to go public."
The recovery of the IPO market is also expected to positively impact the investment banking (IB) sector of securities firms, as underwriting and advisory fees from IPOs are likely to rise. Industry experts believe that the recovery trend will become more pronounced in the second half of the year, depending on the entry of major candidates for IPOs.
A securities industry insider noted, "At the beginning of the year, many companies were delaying their listings or waiting to see how the market would perform, but recently, inquiries about pursuing IPOs have increased. If the stock market remains strong, the IPO market in the second half is likely to be even more vibrant than in the first half."
* This article has been translated by AI.
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