SBV Tech IPO Subscription Success, Competition Rate 1657 to 1

A Total of 4.6 Trillion Won in Margin Deposits... Scheduled for Listing on the 17th

[Asia Economy Reporter Kwangho Lee] SBV Tech recorded a competition rate of 1,657.61 to 1 in the general investor subscription held on the 5th and 6th of this month.

According to Mirae Asset Securities, the lead underwriter, approximately 745.92 million shares were ordered in this subscription. The subscription deposit reached about 4.6 trillion KRW. In the previously conducted institutional investor demand forecast, a competition rate of 1,644 to 1 was recorded.

It is analyzed that the localization of harmonic reducers led to the success of the general subscription. A Mirae Asset Securities official explained, “The items, which were previously dependent on imports from Japan due to the complexity of manufacturing and design, succeeded in localization through independent research and development, which is analyzed as a factor for the successful IPO.”

SBV Tech is a mass producer of harmonic reducers that function as robot joints. Since starting its business with ball and bearing parts, it has expanded its business portfolio to precision control reducers and robot modules based on these, increasing sales and profits.

Through fundraising via the listing, the company plans to invest in establishing an optimized production line. Starting next year, it aims to turn profitable based on full-scale mass production sales, targeting sales of 43 billion KRW and an operating profit margin of over 22% by 2024.

SBV Tech will be listed on KOSDAQ on the 17th. The total number of shares to be listed is 5,944,490. Of these, about 30%, or 1.8 million shares, will be raised through the public offering. The public offering price was set at 12,400 KRW, the top end of the desired price band. The expected market capitalization after listing is 73.7 billion KRW.

Ryu Jaewan, CEO of SBV Tech, said, “We thank the investors who showed interest and participated in the IPO,” adding, “We will continue to focus on technology development and business expansion to grow into a company that can return results to investors.”