South Korea’s initial public offering (IPO) market is gearing up for a potentially transformative year in 2025, with major companies like LG CNS, Lotte Global Logis, K bank, and Bithumb preparing to make their market debuts. However, the backdrop of a sluggish stock market and concerns over undervaluation cast uncertainty over the outcomes.
The IPO market in 2024 saw a significant downturn, with only 3.89 trillion won ($2.73 billion) raised—just one-fifth of the 19.7 trillion won achieved in 2021. Of the 74 companies that went public this year, over 70% experienced a drop in share prices below their initial offering levels.
“The volatility in the domestic IPO market will escalate for a while,” said Lee Chang-hee, an analyst at Samsung Securities. “For successful IPO deals, the stock market has to pick up pace first. Uncertainties surrounding the market environment have to be cleared out.”
LG CNS Leads the Lineup
LG CNS, an IT solutions provider under LG Group, is set to kickstart the IPO wave in February. The company submitted its securities registration earlier this month and plans to issue 19.38 million shares, targeting an offering price between 53,700 won and 61,900 won per share. This places its estimated market capitalization at up to 6 trillion won.
An official from one of the companies preparing for an IPO acknowledged the challenges. “The market condition is not favorable, but we cannot wait forever for the right timing. We will continue to communicate with the market to reassure investors,” the official said.
High Stakes for Lotte Global Logis
Another major player, Lotte Global Logis, has until April to complete its IPO, following the initiation of its listing process in October. The company is expected to achieve a valuation exceeding 1 trillion won.
Failure to meet the timeline could trigger a put option from its financial investor, LLH, requiring Lotte Corp. and Hotel Lotte to repurchase shares, potentially adding to the financial strain on the Lotte Group. The group has already been taking steps to improve liquidity, making Lotte Global Logis’ IPO a crucial event.
Delayed but Not Deterred: K bank
Internet-only lender K bank is also preparing for an IPO in February, after postponing its original October launch due to valuation concerns. The bank aims to float 8.2 million shares, targeting a price range of 9,500 won to 12,000 won per share. With an expected market capitalization of around 5 trillion won, K bank seeks to raise 1 trillion won from its public listing.
Bithumb Joins the Race
Bithumb, South Korea’s second-largest cryptocurrency exchange, plans to go public in the second half of 2025. The company has been actively engaging in marketing efforts to boost its market share ahead of the IPO. Meanwhile, its competitor Dunamu, operator of the country’s largest crypto exchange Upbit, has yet to disclose any IPO plans.
Challenges Loom Large
Despite the ambitious plans, the IPO market remains fraught with challenges. The weak market performance and lingering undervaluation concerns may dampen investor sentiment. As Samsung Securities’ Lee noted, the market must regain momentum and stability for these high-profile IPOs to succeed.
The coming year will serve as a litmus test for South Korea’s IPO landscape, with the performance of these mega listings likely to shape market dynamics for years to come.