SEOUL, September 29 (AJP) - K Bank is poised to file for its third initial public offering (IPO) prospectus early next month, potentially triggering a flurry of delayed listings in the fourth quarter as Korea's equity market is expected to sustain a bullish rally through year-end.
The eight-year-old online-only bank — Korea's first of its kind — had pledged its investors of a 1.15 trillion won rights offering in 2021 to complete its KOSPI debut by July 2026. Failure to do so would allow new shareholders, including MBK Partners and Bain Capital, to sell their shares back to BC Card, the current majority owner with 34 percent.
Earlier this year, the lender shelved its IPO attempt amid weak sentiment. But with markets surging and earnings strong, it is preparing to proceed, backed by NH Investment & Securities and Samsung Securities as joint bookrunners.
The IPO market slumped in August under tighter investor lock-up rules. According to the Korea Development Institute, IPO fundraising plunged 52.9 percent from July to 296.8 billion won, with activity largely confined to smaller KOSDAQ listings at historic lows.
That gloom has lifted in September. The benchmark KOSPI has gained 6.3 percent this month, climbing from 3,186 at end-August to above 3,386 — making it the world's top-performing main index. The rebound has revived IPO demand, with new offerings drawing strong institutional and retail interest.
Myungin Pharmaceutical, the first to list under the revised regulations, drew frenzied orders with an institutional bid-to-cover ratio of 488.95 to 1, pricing at the top of its 58,000-won band. Despite tougher lock-ups, nearly 70 percent of institutional buyers agreed to hold shares.
On the KOSDAQ, cybersecurity firm S2W soared 81.4 percent on its Sept. 19 debut, closing at 23,950 won versus an IPO price of 13,200 won.
"Up to the third quarter, the number of IPOs remained subdued due to a wait-and-see stance under the revised regulations," said Park Jong-sun, a researcher of Eugene Investment & Securities. "However, with more companies expected to file for listings in the fourth quarter, the market is likely to gradually recover and shift back toward growth."
Lee Hong-joo, professor of consumer economics at Sookmyung Women's University, forecast that expectations of rate cuts, ample global liquidity, and chip-sector recovery could provide the "rising tide" to lift new listings, while advising investors to remain selective.
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