IPO value to be highest in 2016

The value of new initial public offerings will be the largest ever this year, said Korea Exchange CEO Choi Kyung-soo on Tuesday.

At a meeting Tuesday with executives of local businesses that are planning to go public on the main Kospi, Choi explained recent revisions to regulations for listing and pledged his support to ensure smooth IPOs.

Thanks to the government’s efforts to promote growth of the capital market for the past two years, the number of newly listed companies increased from seven in 2014 to 16 in 2015.

“As the upbeat mood continues, around 20 companies are expected to complete IPOs by the end of this year,” Choi said, including IPOs of large companies like Hotel Lotte and Doosan Bobcat. “The total IPO value is expected to mark the largest in history.”

According to the operator, the biggest IPO value previously was 8.7 trillion won in 2010.

Along with the U.S.-based Bobcat, succesful foreign businesses like Intercose from Italy and LS Cable & System Asia based in Vietnam are planning IPOs on the Kospi.

Korea Exchange has recently been making efforts to globalize its operations. Earlier this month, the institution said it held a meeting to discuss cooperation with the Taiwan Stock Exchange, including exchanging listed equity-linked funds and jointly developing new financial products to be listed on both boards.

In March, the Korean stock market operator met with the Shenzhen Stock Exchange for similar discussion.

“Korea Exchange will run the deliberation process for new IPOs in a market-friendly manner, while supporting the companies to complete the procedures as smoothly as possible,” Choi said.

BY SONG SU-HYUN [song.suhyun@joongang.co.kr]