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by IANS |
Seoul, Feb 18 (IANS) The initial public offerings (IPOs) in South Korea rose over 16 percent in 2024 from a year earlier despite uncertainties, data showed on Tuesday.
The proceeds from IPOs stood at 3.9 trillion won (US$2.7 billion) last year, compared with the previous year's 3.3 trillion won, according to the data from the Financial Supervisory Service (FSS).
A total of 77 companies made their debuts on the main Korea Composite Stock Price Index and the tech-heavy KOSDAQ markets last year, down from 82 companies going public in 2023, reports Yonhap news agency.
The competition ratio for IPOs came to 775 to 1 in 2024, down from 925 to 1 the year before, while the prices of newly listed stocks closed 42 percent higher on average on the first day of their trading.
The financial regulator said earlier it will introduce stricter rules for IPOs.
Starting next year, over 40 percent of the IPO shares will be first allotted to institutional investors who guarantee the holdings of IPO shares for a certain period, usually three or six months.
Currently, over 20 percent of IPO shares are sold to such institutional investors to help with the smooth debut of a new company on the stock market.
The measure will come as some institutional investors have been under fire for pocketing decent gains by selling IPO shares on the first day of trading.
Meanwhile, Seoul shares extended gains on late Tuesday morning, helped by tech gains amid concerns over the impact of new U.S. tariffs on key industries.
The benchmark Korea Composite Stock Price Index (KOSPI) added 4.54 points, or 0.17 percent, to 2,614.96 as of 11:20 a.m.
The U.S. government recently ordered a 25 percent tariff on all steel and aluminum imports and unveiled a sweeping plan to impose reciprocal tariffs on trading partners.
It also plans to impose tariffs on auto imports starting April 2, which will apparently affect the Korean car industry.
Large-cap stocks were mixed. Market behemoth Samsung Electronics rose 1.4 percent, top carmaker Hyundai Motor climbed 0.4 percent, and LG Chem gained 0.8 percent.
Among decliners, No. 2 chipmaker SK hynix fell 1.7 percent, leading wireless services provider SK Telecom declined 1 percent, and discount retailer Emart shed 0.8 percent.
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