Youngchang Chemical Attracts 3.8 Trillion Won in IPO Subscription

[Asia Economy Reporter Hyungsoo Park] Youngchang Chemical recorded a subscription competition rate of 1,363 to 1 based on proportional allocation in the public offering subscription held for general investors over two days from the 4th to the 5th.

General subscription was conducted for 600,000 shares, which is 25% of the total 2.4 million public offering shares. According to Hana Securities, the lead manager for Youngchang Chemical's KOSDAQ listing, subscription deposits amounting to 3.8062 trillion KRW were received. A total of 409.28 million shares were subscribed, and the overall competition rate considering equal allocation was 682 to 1.

Youngchang Chemical conducted demand forecasting for institutional investors on the 27th and 28th of last month. The public offering price was set at 18,600 KRW, the upper limit of the desired price range. A total of 1,702 domestic and foreign institutions participated, recording a competition rate of 1,616 to 1.

The total public offering amount, including old share sales, is approximately 44.6 billion KRW, and the scheduled KOSDAQ market listing date is the 14th of this month. The market capitalization based on the public offering price is 188.1 billion KRW.

Lee Seunghoon, CEO of Youngchang Chemical, said, "Taking the KOSDAQ listing as an opportunity, we will strengthen our technological competitiveness targeting the rapidly growing front markets of the 4th industrial revolution such as 6G, AI, metaverse, and autonomous vehicles."

Founded in 2001, Youngchang Chemical is a developer and manufacturer of chemical materials supplied to the semiconductor, display, and eco-friendly energy industries. Its main products include photoresist, organic hard mask (HT-SOC), slurry, rinsing solution, developer, etchant, and stripper.

Youngchang Chemical recorded sales of 66.4 billion KRW and operating profit of 2.2 billion KRW last year. In the first quarter of this year, it achieved sales of 19.7 billion KRW and operating profit of 1.4 billion KRW, increasing by 36.9% and 229.0% respectively compared to the same period last year. The company started mass production of the new product 'Extreme Ultraviolet (EUV) Lithography Process Rinse' and is strengthening production capacity, expecting improved performance.