The value of initial public offerings on the Korean stock markets shrank in the first half of this year, as fewer large companies went public, data showed on June 28.
A total of 21 companies have raised 780.1 billion won (US$696.08 million) via IPOs so far this year -- two on the benchmark KOSPI market and the remaining 19 on the secondary KOSDAQ -- according to the data compiled by local consulting firm IR Kudos.
Though the number of the newcomers remained unchanged from the same period in 2017, the total capital raised was a mere 16.4 percent of the 4.67 trillion won tallied during the first half of last year, it added.
The decrease reflects the number of relatively small-scale companies that went public this year, compared to last year‘s market debuts of such blue chips as Netmarble Games and ING Life Insurance.
“The IPO market has been in the doldrums in the second quarter of this year due mainly to the government’s tougher oversight over corporate accounting and the IPO plan cancellation by such a big player as SK Lubricants,” the consulting firm said in a release.
“But things are expected to make a turnaround in the second half, as large firms are being prepared to go public, including Hyundai Oilbank,” it added.
By Song Seung-hyun and newswires (firstname.lastname@example.org