SEOUL - South Korea's initial public offering (IPO) market is poised for a significant rebound this year, buoyed by the entry of several major companies, industry sources reported on Friday. After experiencing a cooler period last year due to a downturn in the local stock market, which led some companies to retract their listing plans, the IPO landscape in South Korea is expected to heat up.
According to Yonhap News Agency, the total value of IPOs is forecasted to surge by 66.1 percent to 6.4 trillion won (US$4.82 billion) this year, with the estimated number of market entrants rising to 85 from last year's 82.
Among the companies seeking to go public, Seoul Guarantee Insurance Co. (SGI) aims to revive its IPO efforts after a previous attempt was thwarted by lackluster demand last year, when the company was estimated to be worth at least 3 trillion won. SK Ecoplant Co., a subsidiary of the SK Group known for its operations in the construction sector, is also planning to undertake an IPO, with expectations of achieving a market capitalization exceeding 1 trillion won. Other notable potential entrants include Hyundai Oilbank Corp. and K-Bank, an internet-only banking service. Choi Jong-kyung, an analyst at Bookuk Securities Co., expressed optimism about the year's prospects, stating, "For the year, big players will actively attempt IPOs and the local IPO market will rebound as well."