South Korea’s Financial Supervisory Service published an overview of the 2025 initial public offering market, reporting that IPO proceeds increased by KRW0.6 trillion to KRW4.5 trillion and 76 companies went public. It links more disciplined pricing and a shift toward longer-term investing to improvements in the bookbuilding process and stronger underwriter accountability, while noting signs of potential overheating as most deals priced at the top of their bands in the second half of the year. Compared with 2024, when aggressive institutional bids led to 66% of IPOs being priced above the upper end of the preliminary price range, all 2025 offerings were priced within the range set by issuers and underwriters. Following a stock market rally, 97% of IPOs priced at the upper end of the price band. Institutional lock-up commitments rose from 18.1% in 2024 to 41% in 2025, a five-year high. Retail demand also intensified, with the average subscription competition rate reaching 1,106:1 and subscription deposits totaling KRW780 trillion, with the competition rate rising to 1,379:1 in October to December. The Financial Supervisory Service indicated it will work to ensure the observed improvements take hold and continue to enhance the relevant systems.
South Korea Financial Supervisory Service 2026-03-04
South Korea Financial Supervisory Service reports 2025 IPO proceeds rose to KRW4.5 trillion as pricing stayed within bands but overheating risks emerged
South Korea's Financial Supervisory Service reported a rise in 2025 IPO proceeds to KRW4.5 trillion, with 76 companies going public. Improvements in bookbuilding and underwriter accountability led to disciplined pricing, though signs of overheating emerged as most deals priced at the top of their bands. Institutional lock-up commitments and retail demand surged, with subscription competition rates peaking at 1,379:1 in late 2025.