이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Foreign bio firms opt to go public on Kosdaq due to strong bio performance
- Collected
- 2016.03.10
- Distributed
- 2016.03.11
- Source
- Go Direct
According to Yuanta Securities Korea Co. and FnGuide on Wednesday, price earnings ratio (P/E), the common measure on how expensive a stock is by dividing the stock’s market capitalization by its after-tax earnings, in the healthcare industry in Korea came to 33.6 based on the closing price on Monday. The same category on the U.S. and European bourses stops respectively at 20.8 and 20.5. The bio stocks on the Kosdaq are more expensive than U.S. and European counterparts. The bio sector is a rare exemption among Korean shares whose P/E are generally undervalued due to opaque governance structure and low dividend payouts.
Another winning factor is the high share of retail investors on the Kosdaq market. Retail investors make up 90 percent of total Kosdaq trade value, making it more accessible for smaller companies to go public. Individual investors tend to invest not only in the familiar names, but also stocks with good prospects.
“Small and less known companies cannot draw attention in the Singapore and Hong Kong markets because institutional players are dominant there, and the Japanese market is less open to foreign entries than the Kosdaq,” said Lee Gi-il, an official of Shinhan Investment Corp., to explain the phenomenon.
By Yong Hwan-jin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]