SD Biosensor rose sharply in its stock market debut on Friday, boosted by a strong business performance and a surge in individual investor interest in South Korean initial public offerings. Shares in the Suwon-based company closed up 7.0 percent at 61,000 won, after opening 9.6 percent higher than the initial public offering price of 52,00 won. SD Biosensor is the third-largest IPO on the Kospi this year, collecting 776.4 billion won by issuing 14.9 million shares. Its market cap hit 6.3 trillion won ($5.5 billion), putting it in 59th place among firms listed on the benchmark Kospi index. While most South Korean companies pursued listings in Seoul, Coupang, an e-commerce startup funded by SoftBank, tested its luck on the New York Stock Exchange, raising $4.6 billion in March.SD Biosenso, a battery materials company, has topped the IPO chart so far in 2021, raising 2.2 trillion won in May, followed by drugmaker SK Bioscience, which raised 1.5 trillion won in March. Krafton, the online game developer behind PlayerUnknown’s Battlegrounds, or PUBG, will accept subscriptions from investors on August 2 and 3, aiming to raise up to 4.3 trillion won. Kakao’s two financial subsidiaries, Kakao Bank and Kakao Pay, are also planning to list next month, aiming to raise up to 2.6 trillion won and 1.6 trillion won, respectively. Analysts say the IPO market is on track for a record year, possibly surpassing 2010 when the market raised a total of 10 trillion won, led by the listing of Samsung Life Insurance, the country’s largest IPO ever, which raised 4.9 trillion won. The IPO market in Seoul has raised a total of 5.8 trillion won so far. SD Biosensor is one illustration of the growth. In 2020, the company, which was founded in 2010, would have a sales of 1.5 trillion won and a net profit of 585.7 billion won. The company’s net profit increased by 418 percent year over year, mainly to increased demand for its coronavirus diagnostic kit Standard Q, which it exports to Europe and India as well as sells in South Korea. In 10 to 30 minutes, the device can detect coronavirus infection. According to SD Biosensor, Standard Q has sold 700 million copies worldwide as of May, making it the world’s bestselling such kit. Analysts say the crucial question is whether the firm can continue its level of performance as coronavirus vaccine inoculations rise. SD Biosensor claimed in its registration application with the financial authority that it will use the procedures to “diversify its product range” and recruit more researchers, indicating that it is aware of the risk./n
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