KOSDAQ IPO Market
It has been found that the biomedical companies listed on the KOSDAQ market this year enjoyed a significant gain in average stock price in contrast to semiconductor manufacturers.
According to the Korea Exchange, a total of 35 companies went public on the market in 2013, including special purpose acquisition companies (SPACs). Although the IPO amount decreased from a year earlier, the number of such firms increased 59% from 22.
Their performance is not bad in general. 29 out of the 35 recorded an opening price higher than the public offering price, and 23 of them have shown an upward trend since then. For some of them, the share price doubled the public offering price on their first day on the market.
Biotechnology companies distinguished themselves in particular. For example, all three firms with the highest ratio of profit vis-à-vis the public offering price were biotech companies. Their average share price growth rate as of December 26 was 120%, much higher than the overall average of 23.5%.
Meanwhile, semiconductor and display panel manufacturers showed a very sluggish performance. Investors are unwilling to commit to them for now, as capital expenditures are on the decrease due to market uncertainties.