Special Listing
It has been found that the number of small and medium-sized biotech firms in South Korea, which are attempting to enter the local stock market by means of special listing, is showing signs of increase.
According to the Korea Exchange, biotech venture firm AbClon, which produces antibody drugs, applied on May 18 for its preliminary examination for listing on KOSDAQ based on the special listing opportunity for companies with advanced technology. At present, such companies can have a chance of listing, even if they fail to meet profitability requirements, once they pass the evaluation by an external organization assessing their technological strengths.
Established in 2010, AbClon passed the evaluation and applied for the preliminary examination in September 2015. However, the company withdrew its application in December 2015 and concentrated on the export of its technology until recently.
Humasis, an in vitro diagnostic equipment manufacturer founded in 2000, made the same application on May 8. The only difference between Humasis and AbClon is that the former opted for a merger with a special-purpose acquisition company. In this case, slightly lower criteria are applied during the evaluation of technology by the external agency.
Industry experts are predicting that investment in the local bio industry hinges for now on whether AbClon passes the examination or not. In the first quarter of this year, South Korean venture capitals made a new investment of 49.1 billion won in the local medical and biotech sectors, down 40.8% from a year ago.