Fri. Sep 22nd, 2023
    Doosan Robotics Faces Market Excitement Ahead of IPO

    Doosan Robotics, the largest IPO candidate in the Korean stock market this year, has received a positive market response as it begins its book-building process. The parent company, Doosan, also experienced a surge in stock prices during Monday’s trading session. However, some critics express concerns about the firm’s overly optimistic outlook, suggesting that its market value forecast may be exaggerated.

    The book-building process for Doosan Robotics’ IPO began on Monday, collecting demand from institutional investors until Friday. Retail investors will have a two-day general subscription period for the stocks on September 21 and 22. The desired offering price range is set between 21,000 won and 26,000 won, which will result in a market capitalization of approximately 1.3 trillion won to 1.6 trillion won at the IPO debut.

    Some industry insiders argue that the desired offering price is overly calculated, with the firm basing its valuation on the potential earnings forecast for 2026 rather than the current year. Doosan Robotics recorded annual net losses of 12.5 billion won last year and 9.3 billion won for the first half of this year. Despite these losses, analysts are optimistic about the firm’s long-term prospects. The company holds a 5.4 percent market share in the global collaborative robot sector, ranking fourth worldwide.

    Bae Ki-yeon, an analyst at Meritz Securities, predicts a significant increase in Doosan Robotics’ annual revenue by 460.6 percent to 252 billion won in 2026. Bae anticipates the firm’s market capitalization to reach 1.9 trillion won, far exceeding the desired offering price. Na Seung-doo, a stock analyst from SK Securities, also believes the company is likely to achieve profitability sooner than expected due to growing demand for collaborative robots.

    The IPO process is expected to raise approximately 340.2 billion won, with Doosan retaining a 68.2 percent stake in the robotics firm. Mirae Asset Securities, Korea Investment & Securities, KB Securities, NH Investment, and Credit Suisse are all involved in the underwriting process for the IPO.

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