Kosdaq listings number 129, highest since 2002 IT bubble

Depression in equity markets in the wake of global rate hikes this year has not prevented Korean companies from rushing into Kosdaq, South Korea's minor stock exchange for small companies.

According to the Korea Exchange on Wednesday, which runs Kosdaq market, a total of 129 companies were listed on the Kosdaq.

The figure is the highest since 2002 when the Korean equity market was overheated together with the global IT bubble.

A total of 84 companies entered the market through IPOs (initial public offerings) while the remaining 45 firms find their way through SPACs (special purpose acquisition companies).

Listings through SPAC were the highest since the introduction of the system in 2009.

Among the 84 companies, 28 companies joined the Kosdaq market through the technology-based IPO formula, of which only 8 companies engage in bio-sectors.

This contrasts sharply with 17 bio firms out of 25 in 2020.

The remaining 20 were distributed in various industries such as semiconductors and software with 15, mechanical equipment with 12, bio with 10, electric and electronics with 6, and medical precisions with 6.

In particular, AI-based image analysis and detection service start-ups accounted for a substantial share among newly-listed software companies.

Due to the sluggish market, the total amount raised through new listing on the minor board this year was 3 trillion won ($2.3 billion), down 600 billion won from last year.

The average for the past three years is about 2.9 trillion won. The largest public offering in the market this year was secondary battery separator filmmaker WCP raising 432 billion won, followed by secondary battery recycling firm SungEel HiTech Co. with 133.5 billion won.

Write to Tae-Woong Bae at btu104@hankyung.com