[IPO] YFarm "Diversifying Revenue Sources and Expanding Market... Leap to Global Top Tier"

[Asia Economy Reporter Yoo Hyun-seok] Yiparm, a manufacturer of power amplifier modules for 5G mobile communication terminals, held a press briefing in Yeouido on the 15th ahead of its initial public offering (IPO).

Established in December 2006 for the purpose of manufacturing and researching high-efficiency power amplifiers for wireless communication, Yiparm develops, manufactures, and sells RF front-end modules (RFFEM), which are key components of the transmitter section in wireless communication devices.

The transmitter components of RF front-end modules are classified into several categories depending on the combination of power amplifiers, switches, filters, and other parts. Yiparm has secured a product lineup covering all categories. Furthermore, it has a foundation that can expand into various fields such as telematics (automotive communication) modules, smart cells, and defense, not limited to mobile communication terminals.

Since 2016, the number of smartphones equipped with Yiparm power amplifiers has steadily increased, and based on 2019 sales, the average annual growth rate over the past three years was 84.5%. Yiparm's 2019 performance recorded sales of 125.4 billion KRW, operating profit of 12 billion KRW, and net profit of 11.3 billion KRW, representing increases of 94% in sales, 144% in operating profit, and 249% in net profit compared to the previous year.

In the first quarter of this year, Yiparm posted sales of 11 billion KRW and an operating loss of 600 million KRW, showing sluggish performance. The company explained that this was due to the impact of the novel coronavirus disease (COVID-19). However, it expects overall performance for this year to show growth compared to the previous year.

Yiparm has completed vendor registration with Chinese global smartphone manufacturers, making its entry into the Chinese market more tangible. Through this, it plans to continue sustainable growth by diversifying clients and product sales based on its foothold in the Chinese market. Additionally, it is attracting SI-type investors who can activate its sales network within China to expand its customer base there.

Yiparm aims to become a solid global top-tier company in the RF component sector by enhancing external credibility through listing on the KOSDAQ market and strengthening product and technological competitiveness in the 5G market. The IPO proceeds will be used to expand the applied product lineup to increase market share.

Yoo Dae-gyu, CEO of Yiparm, stated, “The RF industry is one of the core industries of wireless communication, but it is relatively less known and understood by domestic investors. Through this IPO, we want to inform many investors about Yiparm’s technology recognized in the RF industry and global market, and furthermore, use it as a stepping stone to leap into the global top tier in the RF component sector,” outlining the post-listing vision.

Yiparm’s lead underwriter is NH Investment & Securities. The expected public offering price band is 9,700 to 11,000 KRW, with the offering amount ranging from 72.1 billion to 81.7 billion KRW based on the band. The final offering price will be determined through demand forecasting on the 16th and 17th. Subscription will be accepted on the 21st and 22nd of the same month. The KOSDAQ listing is scheduled for July 31.