South Korea's IPO market recorded 17 listings in the first half, a 59% decline from the 10-year average of 27 listings per half-year period, according to a report by Oh Gwang-young, a researcher at Shinhan Securities. The market raised KRW 1.1 trillion, down 48.7% year-over-year, marking a 30% drop from the 2016-onwards average of KRW 1.6 trillion. The decline stems from new government guidelines prohibiting duplicate listings and poor post-listing stock performance. The government introduced regulatory changes to address duplicate listing practices, which had previously allowed affiliated companies to list separately.
First Half IPO Performance Shows Sharp Decline
Of the 17 listings in the first half, one occurred on the KOSPI market and 16 on the KOSDAQ market. The KRW 1.1 trillion in raised capital represents the lowest level since 2016, excluding 2021 and 2022. Oh Gwang-young noted in the report titled "2026 First Half IPO Market Trends and Second Half Outlook" that market participants must pay continuous attention to changes resulting from the government's introduction of new IPO-related systems in the second half.
Analyst Forecasts 64-68 Annual Listings for Full Year
Oh Gwang-young projected annual IPO listings will reach 64 to 68 companies, representing a 1% to 7 percentage point increase compared to the 2011-2020 annual average of 63 listings. The researcher stated that market participants will gradually adapt to the new system from the second half onward, when regulations are formally implemented, and will actively pursue IPOs after observing the progress of the new system's introduction. He added that if certain large-cap group affiliates that attract high investor interest proceed with listings following these procedures, they will receive even greater attention, though a considerable adaptation period is necessary given the system's novelty.
Duksan Neocores Submits Securities Report Ahead of September Demand Forecast
Duksan Neocores (parent company: Duksan Hi-Metal) submitted a securities report and is scheduled to conduct a demand forecast targeting institutional investors from September 8 to 14. DTS (parent company: Dasan Networks) is also preparing for listing. Oh Gwang-young explained that some unicorn companies attracting high investor interest have listing possibilities, specifically identifying these two companies as being in preparation. He stated that if these companies successfully list and enter the market, some large-cap stocks considering listings are highly likely to re-enter listing procedures at any time. The researcher noted this represents a point requiring attention, as it could record offering amounts far exceeding forecasts.
FAQ
What caused South Korea's IPO market decline in the first half?
The decline resulted from new government guidelines prohibiting duplicate listings and poor post-listing stock performance. The market saw 17 listings compared to the 10-year average of 27 listings per half-year period.
When is Duksan Neocores scheduled to conduct its demand forecast?
Duksan Neocores is scheduled to conduct a demand forecast targeting institutional investors from September 8 to 14, following its securities report submission.
