In volatile Asian markets, Tokyo’s Next Generation Technology IPO soared 58%, while South Korea’s LG CNS IPO dropped 10%, continuing a trend of weak debuts in Seoul amidst geopolitical tensions.
In a volatile Asian market, Tokyo’s tech firm Next Generation Technology experienced a stellar debut, with its shares surging nearly 60% on February 5. This marked the first IPO debut of 2025 in Tokyo, raising ¥1.3 billion ($8.49 million). The Japanese company specializes in emerging technologies and innovation, capitalizing on the strong appetite for tech-related investments in the region.
Conversely, South Korea’s LG CNS, a leading IT, cloud, and AI services provider, witnessed a disappointing IPO performance, with shares dropping nearly 10% after opening at 61,900 won and closing at 55,800 won. Despite high demand—over 123 times oversubscription in the retail portion—the firm’s shares failed to gain momentum in a market shaken by geopolitical uncertainties.
The weak debut of LG CNS follows a recent trend of tepid IPO performances in the Seoul market, despite the significant oversubscription by institutional investors. The company raised 1.2 trillion won ($827.1 million) in the IPO, which was the largest in South Korea in three years, but the disappointing market response highlights ongoing investor concerns.
Market analysts are attributing the weak IPO performance to the global trade tensions, particularly between the U.S. and China, contributing to heightened volatility in Asian markets. These trade war concerns have led to cautious investor sentiment, particularly in the context of an already slow IPO market in the region.
Meanwhile, Tokyo’s Next Generation Technology’s strong debut highlights the ongoing demand for tech-related IPOs, particularly as the Nikkei index saw modest gains amidst global market uncertainty. While the outlook for Asian equity markets in 2025 remains mixed, the region’s IPO activity continues to showcase contrasting results, with some sectors faring better than others.
Analysts believe that while tech IPOs in Japan may continue to perform well, the weak debut of LG CNS in South Korea could discourage further listings in the short term.
