Twenty firms have submitted preliminary applications for initial public offerings to the Korea Exchange in April, five times higher than the previous month, a report by a local brokerage showed Wednesday.

“With the number of confirmed COVID-19 cases sharply declining and the continued stock index rally in mid-April, the number of firms preparing for listing plans has greatly increased,” said Lee So-joong, an analyst at SK Securities.

“Despite lingering uncertainty of the COVID-19 crisis, more IPO applications are likely to be submitted in May.”

Regarding the growing demand for non-face-to-face services, an increasing number of companies that develop “untact” technology will seek their market debut, Lee added.

Investors’ interest is set to shift from materials, parts and equipment sectors to e-commerce and 5G network in the wake of COVID-19, he said.

The list of companies that submitted preliminary IPO applications last month include technology firms such as Aim Systems, WiPAM and VINA Tech. The country’s leading e-commerce company Tmon and the internet-only bank Kakao Bank are also set for listing.

By Jie Ye-eun (yeeun@heraldcorp.com)