Two Korean biotech IPOs raised 24.5 billion won less than the top of their ranges

Run the proceeds back through the offering sizes and the indicative ranges turn into prices. Skylabs was selling a fixed 2 million shares, so raising 20 billion won at 10,000 won against 32 billion at the top of its range puts that top at 16,000 won ^[13][17][8]. Ingenia's gap was narrower: 72.5 billion against 60 billion on 5 million shares implies 14,500 won, about 21% above the 12,000 it priced at ^[14][17][8].

Both stocks now trade through those figures. Skylabs' 94% premium on the 18th works out to 19,400 won, some 21% above the top of its own range, and Ingenia's 54% to 18,480 won, 27% above the top of its ^[7][15][16].

That premium went to whoever held the allocation, and almost none of it was tied down. On 2 million and 5 million shares, the uplift from offer to the 18th is 18.8 billion won on Skylabs' book and 32.4 billion on Ingenia's, 51.2 billion won between them, or roughly twice the 24.5 billion the two issuers gave up by pricing at the floor ^[17][18][12]. Institutions pledged 0.17% and 2.23% of bid volume to lockups ^[3]. The rest could be sold on day one.

A year ago the comparable books came with lockup ratios of 74.2% and 74.3%, and both of those offerings priced at the top of their ranges ^[4]. Those pledges are what institutions were holding through what came next. RNAgenics, which opened at four times its offering price and traded above 120,000 won intraday in March, closed at 26,850 won on the 18th, down 77.6% from that high ^[5][19]. Aimed Bio, once above 80,000 won, is back in the 20,000-won range ^[6]. "If institutional demand weakens in bookbuilding and lockup ratios fall, the offering price is also likely to be set low," an industry official told the Seoul Economic Daily ^[9].

There are two ways to read the distance between 10,000 won and 19,400. Either the bookbuild underpriced these two by 20-odd percent and the issuers handed over about 51.2 billion won of transferable value to get deals done in a market where institutions will not commit to holding periods ^[18]. Or the post-listing premium is the same volatility that took RNAgenics from four times offer to 26,850 won, in which case 19,400 won is a quote and not a level at which anyone offered Skylabs cash ^[5]. The Seoul Economic Daily ties the smaller research budget to the lower offering price and does not disclose either company's R&D spending or cash runway ^[22].

Two things hold whichever reading is right. Proceeds are fixed at the offering price whatever the stock does afterwards ^[11], and institutions are refusing to pledge lockups because volatility makes the pledge expensive ^[10].

I would expect near-zero-lockup bookbuilds to stay the norm for KOSDAQ biotech while last year's cohort trades where it does. The test is Skylabs, which raised 37.5% less than the top of its range would have delivered ^[20]: a follow-on that clears near 19,400 won makes the 12 billion won a timing cost ^[15][8]. Without one, its research is funded at 20 billion won ^[8].