Kido Industrial (282620.KQ), a maker of high-performance apparel on an original equipment manufacturer (OEM) basis, plunged nearly 30% on its first day of KOSDAQ trading. The stock briefly traded above its offering price early in the session before a wave of selling widened its losses through the day.
Kido Industrial traded at 20,100 won as of 1:41 p.m., down 8,300 won, or 29.23%, from its offering price of 28,400 won, according to the Korea Exchange on the 21st. After opening at 28,000 won, the stock rose as high as 29,500 won early in the session — 3.87% above the offering price — before reversing course. At one point it fell to 19,960 won, widening its loss to 29.72% below the offering price.
Trading was heavily concentrated from the debut. At the same time, volume reached 7,113,489 shares and turnover totaled 179.6 billion won. Kido Industrial's free float immediately after listing stood at 1,899,185 shares, or 32.50% of the 5,843,707 shares set to be listed. The day's trading volume was about 3.7 times the free float.
In an earlier demand forecast for institutional investors, 637 institutions took part, producing a competition ratio of 213.3 to 1. The final offering price was set at 28,400 won. The retail subscription held on the 11th and 12th of this month, however, drew a competition ratio of just 5.5 to 1. About 24,000 applications were submitted, bringing in roughly 33 billion won in deposits.
Kido Industrial is an OEM producer of high value-added woven apparel, centered on motorcycle wear and high-performance outdoor clothing. Its average annual revenue growth over the past three years has been about 24%. Last year its operating margin was 9.3%, above the 5.3% average of 14 woven OEM companies and the 3.2% average of five knit OEM companies.
The company points to 46 years of accumulated expertise in specialty material processing and high-tech outerwear manufacturing, along with long-standing ties to major global brands, as the foundation for its growth. It also plans to raise its dividend payout ratio in stages to 30% to 40% over time.
