South Korea is likely to end its monthslong drought in the initial public offering scene with Seoul-based pharmaceutical services company DreamCIS moving to raise 20.2 billion won ($16.5 million).

DreamCIS, a company that provides contract-based research services to pharmaceutical and health care firms, said Monday it has fixed its offer price at 14,900 won per share, at the higher end of the price band. Its two-day institutional portion until Friday was 926.11 times oversubscribed.

The company is a Korean subsidiary of Chinese clinical research services provider Hangzhou Tigermed Consulting.

This marks the first IPO here to have completed an institutional portion and to proceed to the retail tranche since IPOs of online marketing firm Playd and smartphone parts maker NPD in early March. The latest stock market volatility due to the coronavirus outbreak has since dragged on companies’ effort to go public, forcing them to delay or scrap their plans.

Retail investor subscriptions of DreamCIS will take place from Tuesday to Wednesday.

The retail tranche will be followed by DreamCIS’s listing on the Kosdaq. NH Investment & Securities is a lead underwriter.

Founded in 2000, DreamCIS has carried out over 1,500 research projects for clients. It was acquired by Tigermed in 2015.

DreamCIS looks to issue 1.35 million shares, or a 25 percent stake, to new investors. Tigermed will hold a 65.16 percent stake following the IPO.

The IPO proceeds will be used to reimburse for its operational costs, advance its capability to conduct medical device clinical trials and deal with regulatory affairs, DreamCIS said.

Meanwhile, Psomagen, another candidate for IPO that is devoted to genome sequencing technology and DNA testing, postponed its schedule for IPOs to end-May.

By Son Ji-hyoung (consnow@heraldcorp.com)