[Special Stock] Point Mobile Signs Large-Scale Contract with US Amazon + Expected to Become 2nd Largest Shareholder... Rebounds After 3 Trading Days

[Asia Economy Reporter Yoo Hyun-seok] Point Mobile, which was listed on the KOSDAQ market on the 3rd, has been strong for three trading days. It is interpreted that attention is being drawn to the fact that it signed a large-scale supply contract with Amazon in the United States and that if they exercise the warrants they hold, they will acquire a 17.7% stake and become the second largest shareholder of Point Mobile.

As of 9:32 a.m. on the 8th, Point Mobile was traded at 27,350 KRW, up 12.09% (2,950 KRW) compared to the previous trading day.

In the demand forecast conducted for institutional investors last month, Point Mobile recorded a competition rate of 1,447 to 1, and in the subscription for general investors, it recorded the third highest competition rate ever at 1,842 to 1. Subscription deposits amounted to 3.0267 trillion KRW.

The company manufactures and sells personal data assistants (PDAs), barcode scanners, mobile payment terminals, RFID readers, etc., used in industrial sites, with Amazon as a major client. Industrial PDAs are similar to smartphones but require durability, security, and special functions, so separate companies operate in this market.

The financial investment industry is paying attention to Point Mobile's "Amazon power." The company recently signed an eight-year contract worth 200 million USD to supply industrial PDAs to Amazon, the world's largest e-commerce company. Analysts say that just forming a strategic relationship with Amazon has increased its investment attractiveness.

In particular, this contract includes warrants, and if Amazon exercises the warrants, it can acquire up to 1.48 million shares of Point Mobile. In this case, it will hold a 17.7% stake and become the second largest shareholder of Point Mobile. Currently, the largest shareholder of Point Mobile is CEO Kang Sam-kwon, who holds a 17.9% stake.

Point Mobile's sales last year were 62.2 billion KRW, up 21.2% from the previous year. Operating profit was 9 billion KRW, an increase of 52.5% compared to the previous year. It is expected that sales of over 100 billion KRW will be possible from next year by supplying products to Amazon.