Skip to content
  • KOSPI 3219.31 +16.99 +0.53%
  • KOSDAQ 1037.36 +6.22 +0.60%
  • KOSPI200 426.11 +2.20 +0.52%
  • USD/KRW 1147.5 0.10 0.01%
  • JPY100/KRW 1,045.61 -2.87 -0.27%
  • EUR/KRW 1,361.57 -3.03 -0.22%
  • CNH/KRW 177.57 0.45 0.25%
View Market Snapshot


SK Bioscience attracts NPS, GIC in successful bookbuilding

By Mar 05, 2021 (Gmt+09:00)

SK Bioscience attracts NPS, GIC in successful bookbuilding

South Korea-based SK Bioscience Co. has successfully concluded the bookbuilding for its initial public offering, attracting institutional investors such as the National Pension Service (NPS) and Singapore’s GIC.

According to the investment banking industry on Mar. 5, over 650 institutional investors participated, with bids outnumbering offers around 1,000 to 1. 

Investors, on average, offered around 72,000 won ($64) apiece, to ensure receiving shares if the final IPO price is set above the proposed price range of 49,000 won and 65,000 won. This year, the IPO market has witnessed intensified overshooting fueled by institutional investors submitting high prices to secure offering shares.

SK Bioscience has decided to keep the offering price within the proposed range despite the high demand. The price is likely to be fixed at 65,000 won ($58), at the top end of the proposed price band, with a price-to-earnings ratio of 22 times based on this year’s projected net profit.

More than 50% of the investors have agreed to a lock-up clause, considering that the stock market has been experiencing increased volatility and the bio sector has not been performing well.

The company's enterprise value is expected to reach 5 trillion won ($4.5 billion), making it one of the most anticipated listings of the year. SK Bioscience is aiming to raise up to 1.5 trillion won via the listing.

The company's successful bookbuilding continues to fuel anticipation over the Korean vaccine maker's share price.

If SK Bioscience debuts on the market with its opening price double the offering price and reaches the daily upper limit of 30%, then it could touch 169,000 won. If it taps the ceiling for two consecutive days, then the price will hit 219,700 won.

Currently, SK Bioscience's shares are traded at around 200,000 won apiece in the over-the-counter market. 

"SK Bioscience's floating shares will account for 25% of the outstanding shares following the listing. The company's share price flow is expected to look favorable in terms of supply and demand given its modest volume," said an industry official.

The Korean vaccine maker plans to use the proceeds to expand its research and production facilities; beef up its pipeline; foster partnerships; and enhance its vaccine portfolio. The company is also keen on improving shareholder value while securing resources to aid its growth as an innovative vaccine maker.

Write to Ye-jin Jun at

Danbee Lee edited this article.

Comment 0