[Asia Economy Reporter Hyungsoo Park] Open Edge Technology has continued its strong performance for the second consecutive day. After falling below the opening price due to a sharp market decline on the first day of listing, it has shown an upward trend since the second day of listing.
As of 9:37 a.m. on the 28th, Open Edge Technology is trading at 14,150 KRW, up 8.45% from the previous day.
It was listed on the KOSDAQ market on the 26th with a public offering price of 10,000 KRW. It started trading at an opening price of 10,800 KRW and closed at 10,050 KRW. The stock price rose sharply from the 27th. Expectations that the company will grow rapidly based on its high technological competitiveness appear to be influencing the stock price. After a demand forecast targeting institutional investors, the public offering price was set at 10,000 KRW. Initially, the expected price range was proposed at 15,000 to 18,000 KRW but was lowered. Even the lower end of the expected range, 15,000 KRW, was about a 30% discount compared to the global peer companies’ price-to-earnings ratio of 38.5 times, considering the sluggish domestic stock market at the time.
Open Edge Technology is a specialized company in designing intellectual property (IP) platforms for artificial intelligence (AI) semiconductors. Based on its proprietary core technology, it designs and develops AI semiconductor IP. At the forefront of the system semiconductor industry, it pre-develops key functional blocks necessary for AI semiconductor chip design according to market demand. These functional blocks are supplied to semiconductor chip design companies such as fabless firms, design houses, and integrated semiconductor companies.
It has uniquely developed the ‘AI Semiconductor IP Platform’ that combines neural processing units (NPU) and memory system IP worldwide. Unlike the method of supplying individual IPs, it possesses the technological capability to provide turnkey AI semiconductor integrated IP solutions. Recognizing this technological prowess, it received an AA grade in a preliminary technology evaluation from NICE D&B in January, the first in the semiconductor IP industry.
Open Edge has established strategic partnerships with major domestic companies such as Hyundai Motor Company and SK Hynix through its specialized competitiveness and technological capabilities. Including global top-tier fabless companies, it has currently signed more than 30 license agreements.
Open Edge plans to use the funds raised through its listing to invest in business expansion, including research and development of high value-added products such as leading-edge process IP products including 5nm and 4nm, securing specialized personnel for IP development, and expanding global bases.
Lee Sung-hyun, CEO of Open Edge, said, “As the AI semiconductor market grows rapidly, we plan to strengthen our unique growth drivers after listing and make every effort to expand globally and increase sales.” He added, “We will leap forward as a global representative AI semiconductor IP design company in the rapidly growing AI semiconductor market and become a company that contributes to the development of the domestic system semiconductor industry.”
Jong-sun Park, a researcher at Eugene Investment & Securities, explained, “Open Edge is the only global company capable of simultaneously supplying NPU (Neural Processing Unit) IP, the core of AI semiconductors, and memory system IP, which serves as the backbone of all semiconductors.” He added, “The NPU IP has achieved up to 3.4 times higher power efficiency and 2.4 times higher area efficiency compared to competitors.”
He continued, “To achieve mid- to long-term growth, the company is developing leading-edge processes and maximizing its market dominance in AI semiconductor integrated IP solutions. Based on its technological competitiveness and proven track record, it is building strategic partnerships with global companies such as Samsung Electronics, TSMC, SK Hynix, Hyundai Motor Company, and Micron.”
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