Korean firms cut IPO prices, volumes amid bearish sentiment

South Korean companies are relaunching attempts to go public with lower valuations and fewer shares amid continued sour investor sentiment.

CK Solution Co., a secondary battery dry room company, on Tuesday filed a securities registration statement with a financial authority for an initial public offering on the main Kospi bourse again. The company dropped its listing plan three months ago due to market volatility.

CK Solution aims to sell 1.5 million shares, fewer than half the 3.1 million stocks initially planned last year, in a price band of 13,500 won-15,000 won ($9.3-$10.4), lower than its previous guidance of 15,700 won-18,000 won.

The company plans to hold bookbuilding Feb. 20-26 while receiving subscriptions from retail investors March 4-5.

NH Investment & Securities Co. is underwriting the IPO.

SEOUL GUARANTEE INSURANCE, ORUM THERAPEUTICS

Last month, Seoul Guarantee Insurance Co. (SGI) renewed its listing attempt by slashing its target valuation by about 40%.

SGI lowered its IPO guidance to 26,000 won-31,800 won from the prior band of 39,500 won-51,800 won. It dropped the listing given tepid response to its bookbuilding in 2023.

The new price is expected to lower its estimated market capitalization to 1.8 trillion won-2.2 trillion won from the previous 2.8 trillion won-3.6 trillion won.

Orum Therapeutics Inc. received subscriptions from institutional and retail investors on Tuesday and Wednesday to sell 2.5 million shares for 20,000 won apiece for an IPO on the junior Kosdaq. It also withdrew the listing last year.

The biotech company had aimed to sell 2.625 million shares in a price band of 24,000 won-30,000 won, much lower than their prior guidance of 30,000 won-36,000 won.

Write to Hanjong Choi at onebell@hankyung.com
 
Jongwoo Cheon edited this article.