Two drug development companies will list on the KOSDAQ market this week as renewed investor enthusiasm lifts the initial public offering market.
Cana Therapeutics debuts on the KOSDAQ on Monday, while IM Biologics follows on Friday, according to financial industry sources on Dec. 16.
Cana Therapeutics has established partnerships with major Korean pharmaceutical and biotech firms including Dong-A ST, Lotte Biologics, and Green Cross to develop platform-based new drugs. The company focuses on bispecific antibody-drug conjugates (ADCs), considered an evolved form of ADC technology, leveraging its genomic analysis and antibody discovery capabilities.
The Korea Exchange approved Cana Therapeutics' technology-based special listing on Dec. 12. Strong demand from institutional and retail investors during the book-building process pushed the IPO price to 20,000 won, the top of the indicative range. The company's market capitalization stands at 259.1 billion won based on the offering price.
IM Biologics specializes in developing treatments for autoimmune diseases and immuno-oncology. High demand during book-building set its IPO price at 26,000 won, also at the top of the range.
Retail subscription periods for other IPOs continue this week. Hanpass, an overseas remittance fintech company, and Meju, a mobile remote patient monitoring firm, open retail subscriptions Monday through Tuesday. Hanpass recorded a competition ratio of 1,172.59 to 1 during institutional book-building, setting its IPO price at 19,000 won. Meju also priced at the top of its range at 21,600 won following strong demand.
Licens Medical, a precision cooling technology company, will hold retail subscriptions Thursday through Friday.
The IPO market has turned favorable recently. Some newly listed stocks including Axbio and S-Team surged more than 300% above their offering prices on debut, achieving what Korean investors call "ttattabeul" — a quadrupling from the IPO price.
However, performance varies by company. K Bank, a large-cap IPO, has traded below its offering price. Market observers say investors should focus on company fundamentals rather than indiscriminate subscriptions.