From Baby Shark to aerospace: IPO market reignites after Chuseok

Pinkfong Company characters Baby Shark, left, and Pinkfong / Courtesy of Pinkfong Company

The once-quiet initial public offering (IPO) market is regaining momentum as companies line up to begin their book-building process after the Chuseok holiday, industry officials said Thursday.

Eight companies are scheduled to begin demand forecasting this month, starting Oct. 14 with Nota, an AI solutions provider, according to the Korea Exchange.

That marks a notable increase from just two and four IPO book-building sessions in August and September, respectively, as sentiment rebounds and companies move to profit from the favorable conditions of an increasingly active stock market.

Among the most closely watched listings are those of Pinkfong Company, creator of Baby Shark and Bebefinn, and Nara Space, Korea's first small satellite developer.

The Pinkfong Company has built a multilingual content production system spanning more than 25 languages, with overseas sales accounting for 76 percent of revenue. The firm is seeking to raise between 64 billion won ($45.1 million) and 76 billion won, with an estimated post-listing valuation of 459.2 billion won to 545.3 billion won.

Nara Space, which successfully launched Korea's first 25-kilogram-class commercial microsatellite in November 2023, is backing major national space research missions. Its IPO is expected to raise 22.5 billion won to 28.4 billion won, valuing the firm at 150.9 billion won to 190 billion won.

Other companies set to go public this year include Green Optics, Sena Technologies, Curiosis, Vitzro Nextech and Inno Tech. All aim to complete book-building this month.

Industry officials say the market has stabilized following July reforms that were aimed at preventing distortions in IPO pricing. Measures announced by the financial authorities included expanding mandatory holding commitments for institutional investors and enhancing their role in the book-building process.

This fresh slate of listings is seen as a potential bellwether for several high-profile IPOs expected in the coming quarters.

Companies preparing to move forward include Kbank, valued at 4 trillion to 5 trillion won; SK ecoplant, at 5 trillion to 6 trillion won; CJ Olive Young, at approximately 2 trillion won; and Kakao Mobility, at 3 trillion to 4 trillion won.

"The launch of the Lee Jae Myung administration and its continued stock market stimulus policies are expected to have a positive impact on the IPO market," said Park Jong-sun, an analyst at Eugene Investment & Securities. "It is believed that firms that have been steadily preparing for IPOs are still closely monitoring market conditions."