Hankom Life Care Sets IPO Price at 13,700 Won... "Subscription Starts from the 5th"

[Asia Economy Reporter Yoo Hyun-seok] Safety equipment company Hancom Lifecare announced on the 3rd that the public offering price was finalized at the upper end of the desired price range, 13,700 KRW, following a demand forecast targeting institutional investors.

The demand forecast was conducted over two days on July 29 and 30 last month. A total of 662 institutional investors participated, recording a competition rate of 419 to 1. The public offering price was set at 13,700 KRW, the upper limit of the desired price band (10,700 KRW to 13,700 KRW). The total public offering amount is 113.7 billion KRW.

Despite recording consolidated sales of 151.8 billion KRW and operating profit of 38.7 billion KRW last year, Hancom Lifecare adopted a conservative public offering price. Although sales of health masks surged unusually due to COVID-19 last year, only the net profit from the existing personal safety equipment business was reflected, excluding short-term favorable factors, to calculate an appropriate corporate value.

The lead underwriter, Mirae Asset Securities, stated, “Many investors resonated with the advanced country-type equity story of a ‘disaster safety platform’ in addition to the company’s outstanding technology and high market barriers,” adding, “It is analyzed that the response was particularly positive from domestic top-tier asset management companies as well as overseas institutional investors.”

Hancom Lifecare manufactures and supplies various safety equipment and supplies such as air respirators, gas masks, and protective suits, focusing on public, defense, industrial, and daily life business sectors. For safety equipment, delivery is only possible after passing various certification standards and full inspections. Hancom Lifecare leads the domestic safety equipment market based on excellent technology, having acquired 188 patents and 283 performance certifications.

Going forward, leveraging the information and communication technology (ICT) capabilities of its parent company, Hancom Group, the company plans to diversify its business into fire and industrial safety platforms, scientific combat training systems, healthcare business, and more, aiming to become a ‘Total Safety Platform Company.’

Hancom Lifecare CEO Woo Jun-seok said at the corporate briefing, “Hancom Lifecare will grow into a company leading the global safety equipment market beyond the domestic market,” and added, “Through this listing on the KOSPI market, we will secure excellent talent and strengthen development capabilities to establish a foundation for advancing as a Total Safety Platform Company.”

Meanwhile, the general investor subscription for Hancom Lifecare’s public offering will be held over two days from the 5th to the 6th, with 2,075,581 shares, accounting for 25% of the total offering volume, allocated. General investors can apply for subscription through the lead underwriter, Mirae Asset Securities, and Hancom Lifecare is expected to enter the KOSPI market in mid-August.