The bio-fever in Korea's stock market will continue this year as more than 20 companies are reportedly ready or preparing to list themselves on the KOSDAQ market.
According to various financial and bio-industry sources, five companies – EnzyChem Life Sciences, Dongkoo Bio&Pharma, Arlico, Osteonic and Asia Seed Corp. – have plans to complete their KOSDAQ listing by February. Afterwards, the companies plan to promote their initial public offering (IPO) for KOSDAQ.
Also, 20 more companies are either preparing to apply or have passed the preliminary examination for KOSDAQ listing.
Such eagerness for bio-companies to list themselves on the secondary bourse comes after many of the bio-industry companies, including Celltrion, Sillajen and Toolgen, enjoyed significant gains in stocks last year.
Led by Sillajen which saw its shares skyrocketing 600 percent last year, about 70 percent of biotech firms enjoyed a stock price growth for the past year.
Celltrion Pharm recorded the second fastest growth in stock price last year, next to Sillajen. The firm saw its shares rise 378.8 percent last year.
Toolgen’s shares also continued to climb amid the rising expectations for rapid growth in the gene therapy market. The company’s stock price currently stands at 127,100 won ($119), a 453.9 percent increase from the previous year.
“Increase in government grants and the upcoming of the Fourth Industrial Revolution has provided an ecosystem where bio-companies can thrive in,” a stock analyst told Korea Biomedical Review, asking to remain anonymous. “The bio fever is also expected to continue as previous KOSDAQ listed companies have shown Korean bio-firms can compete globally.”
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