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Device Eng to debut in two weeks
Posted on Wednesday, 06 December 2017 09:17
Device Eng plans to debut on Kosdaq on 20th December by way of an initial public offering (IPO) worth as much as KRW 30.60 billion (USD 28.16 million), the chief executive of the South Korean industrial process machinery and equipment supplier told reporters.
At a conference yesterday, Bong-jin Choi said the semiconductor, display and IT convergence sector-focused company is selling 1.75 million shares at between KRW 15,500 and KRW 17,500 apiece.
Device Eng makes high-efficiency cleaning equipment for both the organic light emitting diodes (OLED) process and front open unified pods (FOUP), which are clean and secure transportation boxes for wafers within a semiconductor factory.
Proceeds from the IPO will fund investment in research and development activities, including expanding its product line into the flexible display market, which would act as a new growth engine.
Device Eng already has both domestic and leading international semiconductor and display companies on its customer accounts.
Plans to establish new product lines which would tap into the expected increase in demand as the display market shifts from liquid crystal to the latest flat light emitting technology.
The group’s expansion should directly benefit major players like Samsung Display, which has 80.0 per cent of the global sixth generation flexible OLED market, according to the Korea Herald.
Separately, an analyst at Eugene Investment & Securities told Yonhap this segment of the small and medium display sector is expected to jump from 33.8 per cent in 2016 to 53.4 per cent by 2020.
Considering Device Eng’s products are only focused on sixth generation production, earnings are expected to grow significantly, especially as revenue has already risen from KRW 38.40 billion in 2013 to KRW 70.70 billion last year,
In the first nine months of this year, the group posted operating profit of KRW 11.30 billion on sales of KRW 98.30 billion.
Online South Korean newspaper eToday noted Device Eng is also exporting its machinery to the US and Japan, as well as China, and these overseas sales currently account for 30.0 per cent of total revenue in 2017.
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