“Aiming to become a global energy solutions company”... Yeonggwang to seek KOSDAQ listing in November

[Financial News] “Using our KOSDAQ listing as a springboard, we will leverage the modularization expertise accumulated in our existing shipbuilding and plant businesses, along with our diversified global track record, to become a global energy solutions company.”
Heo Cheol-gi, CEO of Yeonggwang, made the remarks at an IPO (initial public offering) press conference in CCMM in Yeouido, Seoul, on the 19th. Founded in 1962, Yeonggwang is an engineering company with shipbuilding and marine operations and plant operations as its two main pillars. Its shipbuilding and marine division produces ship engine-room units, hull blocks, fuel gas supply systems, and other products. In the plant sector, it supplies modular facilities combining piping and structures, as well as chemical equipment such as heat exchangers and pressure vessels.
Yeonggwang handles the entire process for its major equipment in-house, from design through manufacturing and assembly. It has developed expertise in manufacturing chemical equipment for high-temperature, high-pressure, and cryogenic environments, and holds major international certifications, including those of The American Society of Mechanical Engineers (ASME) and the European Pressure Equipment Directive (PED).
Recently, the company has been pursuing business diversification from its traditional shipbuilding and plant sectors into power and energy infrastructure. It has built a track record of winning orders and making deliveries in areas including ultra-high-voltage transformer enclosures, data center power generation equipment, nuclear power and small modular reactor (SMR) equipment, and hydrogen and carbon capture facilities.
Its order backlog has grown alongside its business expansion. The backlog rose 3.01% from 196.3 billion won at the end of last year to 202.2 billion won at the end of the first half of this year. Revenue and operating profit were 113.1 billion won and 12.3 billion won, respectively, last year; in the first half of this year, the company recorded revenue of 59.1 billion won and operating profit of 5.4 billion won.
Yeonggwang plans to expand overseas order wins, focusing on power infrastructure and data center power generation equipment in North America, as well as the nuclear power and SMR markets in Europe. It also plans to grow new energy businesses, including eco-friendly ship equipment and hydrogen and carbon capture facilities.
In this offering, Yeonggwang will offer a total of 2.26 million shares, all newly issued. The indicative offering price range is 14,000 to 17,000 won per share, for total proceeds of 31.6 billion to 38.4 billion won. Its expected market capitalization after listing is around 126.6 billion to 153.7 billion won.
The book-building process for institutional investors has been underway from the 13th through today. The retail subscription is scheduled for the 22nd and 23rd, and the company is targeting a KOSDAQ listing in November. The lead underwriter is Korea Investment & Securities Co., Ltd.
[email protected] Lim Sang-hyeok Reporter