Gaon Chips, 7.6 Trillion Won in Deposit for IPO Subscription

[Asia Economy Reporter Hyungsoo Park] Amid a frozen investment sentiment in the initial public offering (IPO) market, Gaonchips, a system semiconductor design solution company, succeeded in attracting strong interest in its public offering subscription.

Gaonchips announced on the 13th that it recorded a subscription competition rate of 2,183.29 to 1 after receiving public offering subscriptions from general investors over two days from the 11th to the 12th. The subscription deposit was approximately 7.6415 trillion KRW.

Earlier, Gaonchips conducted a demand forecast targeting domestic and foreign institutional investors on the 2nd and 3rd, resulting in a final public offering price set at 14,000 KRW. This exceeded the upper limit of the expected price range of 11,000 to 13,000 KRW.

A representative from Daishin Securities, the lead underwriter of the listing, said, "Despite the recent sluggish atmosphere in the public offering market, many investors highly evaluated Gaonchips' unique technological capabilities as a best partner of Samsung Foundry and ARM." He added, "Despite unfavorable market conditions, Gaonchips demonstrated strong results not only in the successful demand forecast but also in the general subscription, proving its competitiveness."

Gaonchips plans to use the funds raised through the IPO for research and development and overseas market expansion. It will invest in developing semiconductor chips essential for new industries such as automotive, artificial intelligence (AI), and the Internet of Things (IoT). The company aims to strengthen its existing business capabilities, expand its business base through enhancing the system-on-chip (SoC) solution platform, and develop killer IP independently. Starting with the establishment of a branch office in Japan, Gaonchips intends to actively expand overseas into the Americas and Europe, positioning itself as a global design solution company.

Jung Gyudong, CEO of Gaonchips, stated, "We will strive to become a company that meets the expectations of many who have trusted and supported us through continuous technological development and innovation."

Gaonchips will be listed on the KOSDAQ market on the 20th. The lead underwriter is Daishin Securities.