New KOSDAQ Listing at an Offering Price of 16,400 KRW
Supply to Over 350 Public Institutions Including Central Government and Local Governments
[Asia Economy Reporter Hyungsoo Park] G2 Power, newly listed on the KOSDAQ market, is showing strong performance.
At 9:17 a.m. on the 1st, G2 Power was trading at 39,650 KRW, up 20.88% from the opening price. It started trading at 32,800 KRW, which is 100% higher than the public offering price of 16,400 KRW. The price rose to the limit of 42,600 KRW before slightly giving up some gains.
Founded in 2010, G2 Power is the number one company in the domestic government procurement market for switchgear panels. Based on Condition Monitoring Diagnosis (CMD) technology, it provides IT solutions for industrial facilities vulnerable to electrical safety accidents, such as switchgear panels, solar power generation systems, and Energy Storage Systems (ESS). CMD is a digital transformation (DX) technology that monitors and diagnoses the condition of industrial facilities by detecting partial discharge, leakage, short circuits, arcs, and other issues that may occur during the voltage application process of switchgear panels. It requires Internet of Things (IoT), Artificial Intelligence (AI), and Information and Communication Technology (ICT) technologies.
G2 Power applied IoT technology and AI algorithms to industrial sensors that detect abnormal signals. The optimal industrial facility CMD system is installed in its main products, switchgear panels and solar power generation systems, and supplied to over 350 public institutions including central government and local governments.
G2 Power has established a production system capable of customized orders from ordering to design, manufacturing, and on-site installation. It succeeded in domestic production of the intelligent CMD system for switchgear panels for the first time in the industry. Taking advantage of the listing, it is expanding production. It will invest 4.6 billion KRW to build a new factory.
It is promoting new businesses such as the optical fiber sensor safety diagnosis business for Social Overhead Capital (SOC) and the electric vehicle charging system business. The optical fiber SOC safety diagnosis system is an essential element for digitally transforming infrastructure. G2 Power plans to increase sales by developing a system equipped with digital transformation technology in optical fiber diagnostic devices and obtaining essential certifications.
G2 Power is preparing to complete testing and launch a 22.9kV switchgear panel that meets the Q-class quality standards, an essential certification requirement for nuclear power generation facilities, within the second half of this year. Nuclear power plants require the highest level of safety. Accordingly, G2 Power is accelerating the production of Q-class switchgear panels equipped with partial discharge monitoring and diagnostic solutions that monitor and diagnose power status in real time.
G2 Power stated that it is conducting research and development to apply its proprietary IoT, AI, and edge computing technologies to all products to be shipped in the future. It expects to expand supply in markets requiring safety such as AI remote analysis and diagnosis, distribution panel health and remaining life prediction, and equipment safety enhancement, as well as in the replacement market for aging distribution panels.
Researcher Sera Park of Daishin Securities said, "The proportion of government procurement contracts among the company's total contract volume for switchgear panels and solar power generation devices is 96% and 98%, respectively," adding, "Since switchgear panels and inverters are essential components in solar and wind power generation, demand for switchgear panels and inverters from public institutions is also expected to increase."
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