'Smart Machining Solutions Company' Daesung Hightech Submits Securities Report Aiming for KOSDAQ Listing in August

[Asia Economy Reporter Jang Hyowon] Daesung Hitech, which has secured various front industries such as smart machining technology, semiconductors, secondary batteries, and defense, is set to be listed on KOSDAQ.

Daesung Hitech, a precision smart machining solutions company (CEOs Choi Wookak and Choi Hohyeong), announced that it has submitted a securities registration statement to the Financial Supervisory Service and is embarking on an initial public offering (IPO) for KOSDAQ listing.

Founded in 1995, Daesung Hitech has grown through exporting precision parts for various industrial machines. Currently, it supplies core precision parts (such as spindles, shafts, couplings, and over 8,000 types of parts) for equipment to about 50 global industrial machine makers, including YAMAZAKI MAZAKI, the world’s largest machine tool company based in Japan.

Having grown through the precision parts business, Daesung Hitech entered the Swiss-type automatic lathe business, which has high entry barriers, in 2010. In 2014, it acquired the prestigious Japanese Swiss-type automatic lathe brand ‘NOMURA VTC,’ securing brand power and core technology.

At the time of acquisition, NOMURA’s Swiss-type automatic lathes were exported to 7 countries, but by 2021, exports expanded to 25 countries. Through joint R&D with Japan, the company launches 2 to 3 new models annually.

In addition, in 2018, Daesung Hitech became the first in the industry to mass-produce and sell the highly productive TWO-HEAD compact machining center specialized for electric vehicle battery parts processing. Sales have expanded targeting partners of global electric vehicle battery manufacturers, achieving significant annual sales growth. The compact machining center business recorded sales of 4.3 billion KRW in 2017 and continued to grow, reaching 17.2 billion KRW last year, with a compound annual growth rate (CAGR) of 41.4%.

Daesung Hitech is preparing high value-added products by further advancing its excellent ultra-precision machining technology in the precision parts business. It is entering markets such as electric vehicles, hydrogen vehicles, advanced IT, and overseas defense products by supplying MSO-COIL parts that improve electric vehicle motor efficiency, hydrogen vehicle shafts which are key components, and hinges for foldable phones and laptops.

In the finished equipment business, the company has completed development of electric vehicle body frame processing equipment and is currently supplying dedicated manufacturing equipment for electric vehicle battery cases to global secondary battery companies. It is also entering advanced industrial fields such as electric vehicle batteries and modules and healthcare through industrial machine advancement, including supplying equipment to well-known domestic implant companies.

Choi Wookak, CEO of Daesung Hitech, stated, “We will widely promote Daesung Hitech’s ultra-precision smart machining technology, networks with global companies, performance based on these, and our goal to become a global smart machining solutions company in the IPO market to successfully carry out the public offering.”

Meanwhile, Daesung Hitech’s total number of offered shares is 3.32 million, with a proposed price band of 7,400 to 9,000 KRW per share, amounting to a total offering size of approximately 24.6 billion to 29.9 billion KRW. Demand forecasting will be conducted on July 18-19 to finalize the offering price, followed by subscription on July 25-26, with a planned KOSDAQ listing within August. The lead underwriter is Shinhan Investment Corp.