According to the Korea Exchange (KRX) on November 5, the KOSDAQ ended at 701.13, up 6.17 points, or 0.89 percent, on November 3 from 694.96 at the previous session. It was the first time in 15 months the secondary market closed above 700 points. A series of budding firms are in the pipeline for their initial public offerings (IPOs) this month, raising expectations they may accelerate the recent surge of the KOSDAQ market.
They include Studio Dragon whose size of IPO is estimated at 200 billion won to 300 billion won (US$179.29 million to 268.94 million), BusinessOn Communication and Mecaro which are related to innovative growth as well as CTK Cosmetics which show a rapid growth in performance.
Studio Dragon is due to be listed on the 9th. Established in May last year, the firm is a TV program producer affiliated with CJ E&M’s drama production division.
More companies will be listed in the third week of November. BusinessOn Communication will go public on the 14th. The company is a developer and supplier of software as a service (SaaS) and the largest provider of an electronic tax invoice program in Korea. The IPO of semiconductor and display parts manufacturer Mecaro will be opened on the 16th. The firm was selected as one of the suppliers of precursor, a key material for SK hynix's 10-nm DRAM memory chips early this year. In addition, CTK Cosmetics will be listed on the 21st. The company is a cosmetics products container maker for global leading cosmetics brands in the U.S. and Europe.
An official from the KOSDAQ market headquarters at the KRX said, “As many companies, which launch IPOs, offer their shares at relatively low prices, an increasing number of individual investors will be interested in. The companies will enter the market with considerable growth potential, so the environment that is good to invest will be created.”