[Asia Economy Reporter Jang Hyowon] G2 Power, a smart grid IT solution specialist company (CEO Kim Young-il), announced on the 21st that after conducting demand forecasting for domestic and foreign institutional investors over two days from the 17th to the 18th, the final public offering price was set at 16,400 KRW, the upper limit of the desired price band (13,500~16,400 KRW).
In this demand forecasting, 1,785 domestic and foreign institutions applied for 1,148,043,333 shares for the recruitment of 663,750 shares, which is 75% of the total public offering volume, recording a competition rate of 1,729.63 to 1. The public offering amount according to the public offering price is 14.5 billion KRW, and the market capitalization after listing is about 60.5 billion KRW.
Among all participating institutions, 98.3% of the total institutions (including 30 that did not present) offered amounts exceeding the highest limit of the desired band, 16,400 KRW. As a result, the proportion of institutions that offered 16,400 KRW or more was 99.9% of all institutions (a total of 1,783 institutions).
A representative from the lead underwriter said, “Many institutional investors participating in the demand forecasting regarded G2 Power as a company expected to benefit from the growth of the smart grid market according to the government’s New Deal policy, showing a high participation rate from the first day of demand forecasting,” and added, “The public offering price was decided within the range that does not exceed the upper limit of the desired band to ensure shareholder-friendly pricing.”
G2 Power is a company that provides condition monitoring and diagnosis (CMD) IT solutions to industrial facilities such as switchgear panels vulnerable to electrical safety accidents, solar power generation systems, and ESS, based on CMD technology. After listing, the company plans to focus the public offering funds on establishing a new factory to secure production capacity and operating funds for this purpose.
Kim Young-il, CEO of G2 Power, said, “I sincerely thank many institutions for actively participating in the demand forecasting and showing trust in our growth potential and value,” and added, “We will build a differentiated smart grid platform and maintain our position as a first mover to achieve continuous growth in market responsiveness and the traditional market.”
Meanwhile, G2 Power plans to be listed on the KOSDAQ market on April 1 after general investor subscription on the 22nd and 23rd. Subscription is possible through the lead underwriter Korea Investment & Securities and the joint underwriter KB Securities.
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