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Competition among securities firms for initial public offering (IPO) underwriting is expected to remain fierce this year, following last year's intense rivalry.

The companies are focusing on investment banking operations, particularly IPO underwriting, as sluggish performance in the retail sector appears inevitable, with a stock market downturn anticipated.

Notably, last year's top three players in IPO underwriting were separated by narrow margins, suggesting even fiercer competition this year.

According to the Financial Supervisory Service, Thursday, KB Securities successfully managed 13 IPOs last year, including HD Hyundai Marine Solution, achieving a total underwriting performance of 681.2 billion won ($464 million).

This secured the firm the top spot in terms of underwriting volume, solidifying its competitive edge in the market.

KB Securities is also serving as the lead underwriter for LG CNS, which is scheduled to go public in early 2025. This positions the brokerage house to continue its strong performance.

LG CNS, with an estimated corporate value of around 6 trillion won, is considered a mega-deal IPO and is expected to be the largest public offering in three years since LG Energy Solution.

The co-underwriters for this IPO include Mirae Asset Securities, Daishin Securities, Shinhan Securities and J.P. Morgan.

Korea Investment & Securities, meanwhile, surpassed KB in the number of IPOs managed with 18 deals but ranked second in total underwriting volume at 673.2 billion won.

Mirae Asset Securities, which had topped IPO underwriting performance in 2023, fell to third place in 2024 with an underwriting volume of 617.1 billion won.

NH Investment & Securities ranked fourth with 490.1 billion won, impacted by the cancellation of Kbank's IPO.

The internet-only bank, with an estimated corporate value of 5 trillion won, was on the verge of listing but postponed its IPO in October due to weak demand from institutional investors.

The bank's lead underwriters include NH Investment & Securities, KB Securities and Bank of America. If the IPO proceeds as planned in January this year, it is expected to be a landmark deal that could significantly influence this year's underwriting performance ranking.

Major securities firms have already demonstrated their commitment to improving performance through organizational restructuring related to IPOs.

NH Investment & Securities and Korea Investment & Securities both carried out leadership changes in their IPO divisions during end-of-year personnel appointments as part of their strategies to strengthen their position and achieve higher underwriting performance.