The South Korean initial public offering (IPO) market is forecast to at least double in size this year from that of last year.
The nation’s IPO market was estimated to range between 2.50 trillion won ($2.36 billion) and 3.50 trillion won in total value this year, according to a survey of the Korea Exchange (KRX) and top 10 local IPO lead managers listed in Maeil Business Newspaper’s RaytheM league table for the equity capital market Wednesday. The top 10 lead managers are: KDB Daewoo Securities, Woori Investment & Securities, Hi Investment & Securities, Mirae Asset Securities, Korea Investment & Securities, Hana Daetoo Securities, Shinhan Investment Corporation, Hanwha Investment & Securities, Kiwoom Securities, and KB Investment & Securities.
“The Korean IPO market would be more dynamic than last year as an increasing number of companies which decided not to go public last year under a worsening financing condition are expected to reattempt to float their shares,” said an official in charge of securities at the KRX.
The nation’s IPO market had 28 newly listed companies with the total value of their IPOs amounting to a mere one trillion won in 2012 ,10 percent of that of 2010, as companies who feared underestimation of their value withdrew their applications to be listed.
But many of them, including Hyundai Oilbank, POSCO Specialty Steel, Fast Future Brand, Sambo E&C, LG Siltron and DYM, are likely to go for IPO again this year.
Other candidates for listing on the main bourse KOSPI market this year include SK Lubricants, Hyundai Rotem, Hyundai Logistics, POSCO E&C, Mirae Asset Life Insurance, Samsung SDS, Coca Cola Beverage Company and TheFaceshop.
The nation’s secondary index market KOSDAQ also has many applicants for IPO. “More companies are expected to go public on the KOSDAQ than last year since discussions have already been made on how to ease the current rigid requirements for listing on the market,” said an official in charge of KOSDAQ at the KRX. “Around 50 to 60 corporations are estimated to submit applications for IPO, with 40 of them set to be successfully listed on KOSDAQ.”
[Written by Seung-chul Bahk - Sun-ah Kim / edited by Soyoung Chung]
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