As the KOSDAQ market continues to struggle, more companies with improving performance are seeing their shares classified as low-priced stocks. SPAC mergers and IPO trends are affecting the flow of capital, with knock-on effects on the venture investment environment. This article reviews recent developments.
Yun Cheol-hwan (윤철환), chief research fellow at Korea Investment & Securities, said that falling share prices were excessively diluting the largest shareholder’s stake and putting ECM transactions at a disadvantage. He said deals had increasingly been delayed or failed, suggesting that the relationship between supply and demand and share prices was breaking down.
バイオポート, a food-export company listed approximately one year ago, invested about KRW 2.5 billion in a SPAC merger to pursue a KOSDAQ listing, but growth has stalled amid U.S. tariff issues, and its share price has been slow to recover despite improving performance. There are also cases in which low trading volume causes a share price to move sharply.