[Asia Economy Reporter Hyungsoo Park] Daemyung Energy, the third-largest company in the wind power market, is expanding its business scope from onshore wind power to offshore wind power through its initial public offering (IPO).
According to the Financial Supervisory Service's electronic disclosure system on the 28th, Daemyung Energy has begun the public offering process for a total of 4.5 million shares, including 2.77 million new shares and 1.73 million existing shares, to list on the KOSDAQ market. The desired public offering price per share was proposed at 25,000 to 29,000 KRW.
Excluding the sale of existing shares, Daemyung Energy plans to raise at least 69.3 billion KRW. CEO Seo Jonghyun and related party Nam Hyangja will sell 1.05 million shares and 680,000 shares, respectively. Based on the lower end of the offering price, CEO Seo will receive approximately 26.3 billion KRW.
Founded in 2014, Daemyung Energy operates in the renewable energy sector, including wind and solar power, engaging in business development, design, procurement, construction, and operation management. The company has established an Energy Management System (EMS) and Power Management System (PMS) to improve power plant operation rates and utilization.
According to data from the Korea Wind Industry Association, Daemyung Energy held a 6.91% market share in the wind power generation market as of 2020. As of the third quarter of last year, the company recorded sales of 95.9 billion KRW and operating profit of 36.8 billion KRW. Sales decreased by 24.8% year-on-year, while operating profit increased by 29.8%. The top one and two shares of domestic wind power facility capacity are held by power generation subsidiaries.
Daemyung Energy plans to invest the funds raised from the IPO into offshore wind power infrastructure, upgrading aging renewable energy power plants, green hydrogen and fuel cell businesses, and future projects such as virtual power plant (VPP) operations. The company is also pursuing acquisitions of related companies to enter the offshore wind power operation and maintenance (O&M) business. Additionally, it will acquire shares in Yeongam Wind Power, Doeumsan Wind Power, Cheongsong Noraesan Wind Power, and Wondong Wind Power, currently held by related party Daemyung JI.
In South Korea, securing initial business rights is crucial in the renewable energy sector due to limited project sites and grid capacity. As foreign developers enter the domestic market, Daemyung Energy is continuously developing business rights and building a power generation portfolio to secure a competitive advantage.
Daemyung Energy will conduct demand forecasting for institutional investors from February 23 to 24 and finalize the public offering price. Subscription for general investors will be held from March 3 to 4. The company plans to list on the KOSDAQ market in March, with Korea Investment & Securities as the lead underwriter and Samsung Securities as the joint underwriter.
CEO Seo Jonghyun of Daemyung Energy stated, "Through listing on the KOSDAQ market, we will solidify our position as an innovative renewable energy company," and added, "Daemyung Energy will continue to expand sustainable energy infrastructure for the environment and future generations."
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