Top Korea Listing in Years Flops in Debut as IPO Fever Cools (1)

South Korea’s biggest new listing in more than two years got off to a weak start as LG CNS Co. fell on its Seoul trading debut after a 1.2 trillion won ($821 million) initial public offering.

Shares of the diversified technology-services unit of LG Group sank 9.9% to 55,800 won, while the broader Kospi index rose 1.1%. That’s amid concerns the stock was overpriced in the recent IPO, when it was sold at the top of the marketed range after it was snapped up by local investors.

Hyun Shin-Gyoon, chief executive officer of LG CNS, attends the company’s listing ceremony in Seoul on Feb. 5.

Photographer: Jean Chung/Bloomberg

The debut indicates investors are becoming increasingly skeptical about IPOs being a ...