K&S I&C (487400.KQ), a satellite communications antenna solutions provider, doubled on its KOSDAQ trading debut, surging 100% to hit twice its offering price.
Unlike Delicious (483350.KQ), which listed a day earlier, K&S I&C had drawn strong results in both its institutional book-building and retail subscription, a factor cited as the reason for the sharp share-price gain.
K&S I&C traded at 23,750 won, up 100% intraday, according to the Korea Exchange on the 13th. The company and its listing underwriter, IBK Investment & Securities, set the offering price at the top of its 9,000-to-11,000-won range in institutional book-building held from the 27th to the 31st of last month. As of 9:40 a.m., the stock traded at 23,400 won, more than double the offering price.
The result stood in contrast to Delicious, which made its KOSDAQ debut a day earlier. Delicious, whose core business is a business-to-business (B2B) platform for K-fashion companies, closed at 5,140 won, down 26.57% from its 7,000-won offering price. Although it had set its offering price at the top of its 5,000-to-7,000-won range in book-building, the company drew a subscription rate of just 10.29 to 1 in its retail offering held over two business days starting on the 3rd of this month.
K&S I&C, by contrast, secured enthusiastic investor interest from the offering stage. Its book-building drew a demand rate of 938.24 to 1, with 90% of participating institutions placing orders at the top of the range. Its retail subscription posted a rate of 1,079.55 to 1, the first four-digit rate since Remedi (1,706.71 to 1), which joined the KOSDAQ on the 13th of last month.
The market viewed the outcome as reflecting praise for the company's technology and growth potential in military antennas. K&S I&C has said it will use the 26.4 billion won ($19 million) in proceeds raised through its KOSDAQ listing to fund next-generation military satellite communications antenna product lines and research and development (R&D).
