IPO Market
The Korea Exchange announced on February 13 that KOSPI recorded a total IPO value of 4.2727 trillion won (US$3.63 billion) last year to show a substantial year-on-year growth led by Samsung Biologics, Doosan Bobcat and so on and the growth of the local IPO market is likely to continue this year.
According to the Korea Exchange, approximately 20 companies are scheduled to go public in the KOSPI market this year. These companies are equivalent to a total IPO value of six trillion won (US$5.1 billion) to seven trillion won (US$6.0 billion) and the value is the highest since 2010 when it added up to 8.7453 trillion won (US$7.4 billion).
The 20 or so companies include Korea South-East Power Company and Korea East-West Power Company, each being equivalent to one trillion won. The former is expected to go public in the first half of this year and the latter is estimated to do so in the second half. Then, they become South Korean public corporations going public for the first time in seven years. The Korea Exchange is planning to apply a simplified pre-listing examination to both so that their listing can be facilitated.
Netmarble Games, estimated at about two trillion won, is expected to become the first mobile game company in KOSPI in May or June this year. It passed the preliminary screening in December last year. ING Life Insurance, estimated at around one trillion won (US$850 million), submitted its preliminary screening application to the Korea Exchange on February 9 and the screening is scheduled to be completed before March 10.
The IPO value can jump to 10 trillion won (US$8.5 billion) if Hotel Lotte tries again after the postponement attributable to the slush fund investigation conducted last year. Hotel Lotte is aiming to go public within this year but plans have yet to be finalized.