K Bank, Essex Solutions, and others join the IPO queue... "Listing warm wind" in the domestic stock market.

With major companies such as K Bank and Essex Solutions applying for initial public offering (IPO) review one after another, the South Korean IPO market has revived after a long time. Against the backdrop of heightened expectations for a stock market rebound, these companies have officially initiated the relevant procedures to raise funds through listings and enhance their market credibility.

According to the financial investment industry, K Bank and LS Group's subsidiary Essex Solutions submitted their preliminary review applications for main board listing to the Korea Exchange on November 10 and 7, respectively. Recently, the stock market has shown a strong trend with expectations that the Composite Stock Price Index (KOSPI) may break through the 4000-point mark (commonly referred to as “four thousand points”). Companies believe that now is an appropriate time to implement IPOs. K Bank had previously formulated listing plans twice, but they were abandoned due to low investment sentiment and poor demand forecasts.

It is reported that this is the third attempt by K Bank, which has partially adjusted its public offering structure based on previous listing failures, such as lowering the public offering price. Major investors in K Bank, such as MBK Partners, Bain Capital, and MG New Village Treasury, are reportedly collaborating this time with the aim of successfully completing the listing, even if it requires some concessions on investment returns. This is interpreted as a strategic judgment aimed at stabilizing the recovery of investment funds.

On the other hand, Essex Solutions faces the challenges of its parent company LS Group's complex control structure and the controversy surrounding its repeated listings. The company is a great-grandchild of LS Holdings and grew through the acquisition of a local company listed on NASDAQ in the United States in 2008. Its main business involves manufacturing wires for electrical infrastructure known as winding wires, and its business scope has recently expanded into new industry fields such as electric vehicles. However, if Essex Solutions goes public, there are concerns that the enterprise value of its parent company LS may be diluted, making communication with the market particularly important.

The listing trends of such large enterprises also have an impact on the listing activities of small and medium-sized enterprises. In the third week of November, four companies plan to be newly listed on the KOSDAQ market, including optical component company Green Optical (17th), children's content company The Pinkfong Company (18th), semiconductor equipment component company CMTX (20th), and scientific equipment manufacturer Bitsrone Tech (21st). In addition, companies such as Aromatica and Aimed Bio are about to conduct public subscriptions, while Revesmed, Samjin Foods, and Easyth have also initiated demand forecasts for institutional investors.

As the KOSPI continues to strengthen in the second half of this year, the IPO market is gradually warming up. Some evaluations suggest that while large candidates with solid revenue models are emerging, small and medium-sized enterprises are continuously entering the market, restoring the vitality of the entire capital market. This trend is expected to continue into the first half of next year and have a positive impact on the overall restructuring of future industries and the acquisition of new growth drivers.