Sun. Sep 24th, 2023
    Doosan Robotics Aims for $255.8 Million IPO to Capitalize on Robot Industry Boom

    South Korea’s Doosan Robotics Inc. has set its sights on an initial public offering (IPO) to raise an estimated 340.2 billion won ($255.8 million) ahead of its main Kospi debut next month. The robotics arm of Doosan Group is predicted to achieve a market capitalization of between 1.36 trillion won and 1.68 trillion won ($1 billion to $1.3 billion) once it lists. Following the IPO, Doosan Group will retain a 68.2% stake in the robotics company, while outstanding shares will represent 24.8%.

    The indicative pricing range for the IPO has been set between 21,000 won and 26,000 won, based on the average price-to-earnings ratio (PER) of the global robotics industry. Bookbuilding for institutional investors will take place between September 11 and 15, with retail subscriptions available on September 21 and 22.

    Analysts have expressed positive outlooks for Doosan Robotics, citing its position as the fourth-largest collaborative robot maker globally (excluding China) with a 5.4% market share. Meritz Securities Co. Research Analyst Bae Ki-yeon expects the company’s revenue to rise from 45 billion won last year to 252 billion won in 2026 due to increased sales of robot arms and robotics solutions. In addition, it is projected that Doosan Robotics will turn a profit in 2025, with operating profit margins of 8.7%, 14%, and 28.6% in 2025, 2026, and 2027 respectively. The fair value of the company’s shares is estimated to be 29,000 won, potentially pushing its market capitalization to 1.9 trillion won.

    Yang Seung-yoon, an analyst at Eugene Investment & Securities, also expressed optimism about Doosan Robotics’ growth potential and its roadmap to success. However, he cautioned that meaningful comparisons with global peers are challenging due to the relatively short history of the robotics market industry.

    The booming robotics industry in South Korea has led to an increase in the stock prices of some publicly traded companies in the sector. Rainbow Robotics, a robotics system engineering firm, has seen its stock price rise to 212,500 won, approximately 2.3 times its closing price two months ago. Likewise, collaborative robotics maker Neuromeka has experienced a 47% increase in its stock price over the past two months, closing at 42,800 won on Monday.

    – Meritz Securities Co. Research Analyst Bae Ki-yeon
    – Yang Seung-yoon, analyst at Eugene Investment & Securities