Sun. Sep 24th, 2023
    Doosan Shares Rise as Robotics Affiliate Plans IPO

    Shares of South Korean holding company Doosan rose sharply on Monday as its robotics affiliate, Doosan Robotics, prepared for an initial public offering (IPO). Doosan Robotics, a manufacturer of collaborative robot arms, began its book-building process, with underwriters measuring investor demand over the next five days. The company plans to issue 16.2 million new shares, aiming to raise up to KRW 421.20 billion ($315.2 million) in its South Korean listing.

    The news of the IPO led to a surge in Doosan’s share price, which climbed as much as 30% to 151,800 won. This increase marked a record daily percentage gain, outperforming the benchmark Kospi index. Analysts from Meritz Securities expressed optimism about the market debut of Doosan Robotics, citing its growth potential and undervalued market capitalization. They estimated the company’s value at around KRW 1.9 trillion, expecting it to become profitable by 2026 and continue to experience strong growth thereafter.

    The projected operating profit margin for Doosan Robotics is expected to widen to 8.7% in 2025, 14% in 2026, and 28.6% in 2027. These figures reflect the analysts’ positive outlook on the company’s future performance. With the demand for robotics and automation technologies on the rise, Doosan Robotics appears to be well-positioned to capitalize on this trend.

    The IPO of Doosan Robotics represents an opportunity for investors to participate in the growing robotics industry in South Korea. As the company continues to expand and develop innovative solutions, it is expected to attract significant interest from investors. The successful market debut of Doosan Robotics will not only provide a boost to the company but also serve as an indicator of the potential for further growth in the robotics sector.

    – Kwanwoo Jun ([email protected])