Youngkwang, a company specializing in shipbuilding, marine, and plant modules, has seen its shares rise over 77% on the first day of trading on the KOSDAQ.
As of 9:17 a.m. on November 2, Youngkwang's shares were trading at 30,200 won, up 13,200 won (77.65%) from the initial public offering price of 17,000 won, according to the Korea Exchange.
Founded in 1962 as Youngkwang Works, the company designs and manufactures large equipment and modules necessary for the shipbuilding, marine, and plant industries. It supplies marine equipment such as ship engine room units, bow blocks, and fuel gas supply systems, as well as plant equipment like pressure vessels and heat exchangers.
Last year, Youngkwang reported sales of 113.1 billion won and an operating profit of 12.3 billion won. In the first half of this year, it achieved sales of 59.1 billion won and an operating profit of 5.4 billion won. As of the end of the first half, the company's order backlog stood at 202.2 billion won, an increase from 196.3 billion won at the end of last year.
In a previous demand forecast for institutional investors, Youngkwang recorded a competition ratio of 1,000.07 to 1, and the IPO price was set at the upper end of the expected range at 17,000 won. The competition ratio for retail investors was 684.73 to 1, with subscription deposits totaling approximately 3.29 trillion won.
Through this listing, Youngkwang raised 38.42 billion won by offering a total of 2.26 million shares. Korea Investment & Securities served as the lead underwriter for the listing.
The company plans to use the funds raised from the IPO to expand production facilities, invest in research and development for new businesses, and establish overseas production bases.
CEO Heo Cheol-ki stated, "Even after the listing, we will continue to strengthen our competitiveness in the next-generation energy infrastructure market and aim to become a leading global energy solutions provider."
Youngkwang features an integrated production system that internalizes key production processes such as piping, steel structure, welding, instrumentation, and assembly. This approach reduces the assembly burden on clients by integrating equipment, piping, and structures into a single module, enhancing production efficiency.
Recently, the company has been expanding into the eco-friendly energy solutions sector, building on its existing shipbuilding, marine, and plant businesses. It is also working to increase the supply of energy infrastructure-related products, including ultra-high voltage transformer enclosures, nuclear power equipment, and eco-friendly fuel supply devices for ships.
* This article has been translated by AI.
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