Recent data reveals that the performance of companies newly listed on stock exchanges in 2023 has been underwhelming, with half of these firms seeing their share values dip below their initial public offering (IPO) levels. Among the affected companies, S. Biomedics stands out with a significant drop since its May debut on the Kosdaq, failing to reach its projected market capitalization of nearly $152 million and experiencing a decline of about 59%. Other notable decreases include semiconductor manufacturer Sigetronics and AI startup CUBOX, whose stock values have more than halved, while extended reality software company Virnect's shares have nearly halved.
The market's confidence has been further shaken by Fadu's August listing on Kosdaq, which is now suspected of inflating its annual revenue forecast for this year—projecting over double the prior year's figures. The actual sales figures for the first three quarters have shown a sharp decrease, almost halving compared to last year. This series of disappointing performances and concerns about misleading financial projections has prompted regulators to contemplate implementing more stringent conditions for future IPOs. These measures aim to safeguard investors from potential losses due to such misrepresentations and could lead to delays as companies strive to meet new regulatory standards.
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