Paratech Conducts Public Rights Offering... "To Be Used for Order Expansion and Factory Expansion"

Issuance Price of Paid-in Capital 850 Won... 22.5 Million Shares, 19.125 Billion Won
Expectations for Reduced Logistics Costs and Improved Profit Structure

[Asia Economy Reporter Kwangho Lee] Paratech is conducting a paid-in capital increase through a public offering. The final issue price for the capital increase was set at 850 KRW. The total scale was decided at 22.5 million shares, amounting to 19.125 billion KRW. Paratech plans to use 5 billion KRW for facility funds, 5 billion KRW for debt repayment, and 9.1 billion KRW for operations.

Paratech is actively developing new technologies, including independently developing high-capacity sprinklers and Early Suppression Fast Response (ESFR) sprinklers. Sales from Paratech’s fire-fighting equipment manufacturing division increased from 65.4 billion KRW in 2019 to 70.7 billion KRW last year, and total sales in 2021 reached 112.8 billion KRW.

Meanwhile, Paratech announced five construction contract orders through single sales supply contract disclosures this year, totaling approximately 94.4 billion KRW, significantly increasing the need for operating funds due to business expansion.

Paratech expanded its Seosan factory and relocated its headquarters and factory from the Bucheon factory, which had been established since its founding, to the Seosan factory, resuming mass production. Along with this, the technology research center also moved to the Seosan headquarters, creating a favorable environment for product development considering mass production conditions.

Additionally, to maximize the production efficiency effect from the factory integration, Paratech plans to expand mass production automation. The company is reviewing the introduction of additional automation systems to maximize the productivity of the equipment currently owned.

A Paratech official stated, “Through this factory expansion and relocation, the manufacturing environment for products such as sprinklers, valves, and expansion piping has been integrated, improving the profit structure by reducing logistics and transportation costs. It is expected that a high level of quality can be achieved through the integration of production, quality, and research facilities.”

Meanwhile, the public offering subscription for Paratech, which is scheduled to close today, can be participated in through Eugene Investment & Securities.