Friday, August 8th, 2014
SEOUL, KOREA - Cuckoo Electronics, Korea's No. 1 rice cooker maker, saw its share price soar to the 15-percent daily upper limit on the first day of trading. On August 6, the Cuckoo Electronics shares were closed at 207,000 won, up 15.0 percent from the IPO price of 180,000 won. Its market capitalization at the end of the August 6 trading was 2,029.2 billion won, ranking 108th in the whole KOSPI market.
This is larger than that for Hyundai Hysco, Youngone Global, Yuhan Corp., and Korean Airlines (about 1.9 trillion won) and a little smaller than that for Hyundai Home Shopping (2.1 trillion won).
On the day, the IPO price of Cuckoo Electronics was determined at a level about 80 percent higher than the subscription price of 104,000 won. During the morning session, the shares once fell after profit-taking sell orders were placed. But it soon rebounded to hit the daily limit.
Investment bankers expected Cuckoo Electronics has excellent growth potential, based on its strong domestic market base and possibility for overseas market expansion especially in the Chinese market. Eugene Investment & Securities analyst Yoon Hyuk-jin said, "The domestic rice cooker market is about 3 million units a year and is at a stable growth path based on replacement demand. Given Cuckoo Electronics' share of high-pressure cookers, priced over 250,000 won, in total sales is more than 50 percent, the company's outlook for sales growth and profitability is very promising."