Newly listed stocks have fallen below their offering prices on their trading debuts for three straight sessions, showing little sign that investor sentiment in the frozen initial public offering market is thawing. Of the 10 companies that listed in July and August, six posted negative returns on their first day, and all but one — biotech firm Ingenia Therapeutics — now trade below their offering prices.
Hachitech, a semiconductor manufacturer that debuted on the KOSDAQ on the 25th, closed at 13,930 won, down 39.43% from its offering price of 23,000 won, according to the Korea Exchange. Kido Industry, a garment maker listed on the 21st, fell 34.58% below its offering price, while software company Nearthlab, which listed on the 24th, ended its first session at 28,650 won, 30.46% below its offering price of 41,200 won. The three most recent KOSDAQ debuts all plunged from their opening day.
Post-listing performance has been even weaker. As of the closing price on the 25th, Ingenia Therapeutics was the only one of the 10 stocks trading above its offering price. Madup and K&S I&C, which surged 26.00% and 39.82% respectively on their debuts, closed at 7,070 won and 8,900 won, both below their offering prices. July debuts such as Lemon Healthcare and HLGenomics also finished below their offering prices, leaving no trace of the enthusiasm for new listings that ran hot earlier this year.
An investment banking industry official said the KOSDAQ has seen greater volatility and investor attention has shifted toward large-cap stocks, sidelining new listings. "The market could regain momentum from September as the pipeline of offerings grows, but KOSDAQ volatility remains a variable," the official said.
