As the season for filing audited financial statements by December-closing companies winds down, South Korea’s initial public offering market is showing renewed momentum. Companies that had paused for year-end accounting work have moved in April to finalize listing preparations and file with the Korea Exchange.
The exchange said on the 24th that 10 companies have filed preliminary review applications this month to list on the KOSDAQ market.
Applicants since April include NeoSapience on April 22; Gido Industry on April 21; Brills and MS Bio on April 16; WisePlanet Company on April 15; Global Technology on April 13; MBD on April 10; Optonics on April 8; Creates on April 7; and HL Genomics on April 3.
The pace marks a sharp pickup from the first quarter. From January through March, 12 companies filed for new listings, including SPAC survival mergers. That means nearly as many applications arrived in a single month as in the entire first quarter.
The surge is closely tied to the common practice of closing books in December. To seek a preliminary listing review, companies generally must submit the latest financial statements and an external audit report. Because financial data are available only after the close is completed, firms typically wait until after March shareholder meetings and the disclosure of audit reports before moving ahead with IPO preparations.
Global conditions have also improved. The worldwide IPO market has posted three straight years of growth in funds raised, showing a clear recovery. An EY research report said global IPO proceeds in the first quarter totaled about $40 billion, or roughly 55 trillion won. Securities firms expect the stronger global tone to support South Korea’s listing market, with activity likely to build into the second half of the year.
The filing rush is expected to continue through the end of April. With an average of three to four companies submitting preliminary review applications each week this month, market watchers expect April’s total to easily exceed the first-quarter count of 12.
Companies seeking technology-special listing status are also moving faster. One such company is expected to file a preliminary review application next week, adding to expectations that demand will remain strong through month’s end.
Given that it typically takes about three months from a preliminary review application to a final listing, companies that filed in April could begin passing reviews and submitting securities registration statements in June and July, setting up a more active public subscription season.
“More technology-special listing candidates are coming to market around this time,” an IPO industry official said. “After April, demand is likely to concentrate further among companies seeking to enter the market based on recognized technological growth potential rather than simple earnings.”
* This article has been translated by AI.
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