Jaram Technology's IPO Price Set at 22,000 Won, Exceeding Upper Limit of Expected Price Range... Competition Ratio 1702 to 1

[Asia Economy Reporter Jang Hyowon] Next-generation system semiconductor specialist company Jaram Technology (CEO Baek Junhyun) announced on the 20th that the final public offering price was set at 22,000 KRW, exceeding the upper limit of the expected price band of 16,000 to 20,000 KRW, following a demand forecast conducted over two days from the 15th to 16th targeting domestic and foreign institutional investors.

A total of 1,774 institutions from home and abroad participated in this demand forecast, recording a competition rate of 1,702 to 1. With the confirmation of Jaram Technology's public offering price, the total public offering amount was decided at 20.5 billion KRW.

A representative from Shin Young Securities, the lead manager of the listing, stated, “Investors highly evaluated Jaram Technology’s excellent system semiconductor design capabilities and the high growth potential of its core products, the XGSPON SoC and XGSPON Stick products. Additionally, considering the difficult market conditions, the decision to eliminate secondary share sales and proceed with 100% new share issuance, as well as the market-friendly public offering structure where the actual tradable volume accounts for only 14.14% of the total listed shares, likely enhanced the investment attractiveness.”

Jaram Technology was established in January 2000 as a system semiconductor design specialist company. It possesses accumulated technology and know-how from the development of various semiconductors such as PABX exchange chips, audio signal processing chips, voice recognition chips, and semiconductors for Hi-Pass terminals. Its core products include ▲ the 5G system semiconductor XGSPON SoC, which enables efficient 5G base station installation (the first domestically developed and commercialized product) ▲ and the XGSPON Stick, a stick-type product attached to optical transceivers using the XGSPON SoC (the world’s first commercialized product).

Jaram Technology’s XGSPON Stick product is a key component used in the rapidly growing global ultra-high-speed internet market and 5G small cell connections after the pandemic. It has supplied over 3,000 samples to 29 global customers, many of whom are conducting equipment compatibility tests and pilot services, signaling the start of full-scale growth.

To differentiate from competitors and secure competitive advantages, Jaram Technology is focusing on developing next-generation products. In particular, it is accelerating development with the goal of launching the 25GS-PON SoC, the world’s first, in the second half of 2023. Currently, no competitors have launched or included the 25GS-PON SoC in their product development roadmaps. If development proceeds as planned, Jaram Technology is expected to capture the global market and lead technological trends.

Jaram Technology plans to use most of the funds raised through this IPO for research and development and facility investment to provide an optimal R&D environment for its core research personnel.

Baek Junhyun, CEO of Jaram Technology, expressed, “I sincerely thank the investors who have placed their trust in Jaram Technology’s advanced technology and future growth potential. Although the IPO schedule was delayed, I am pleased that we could keep our promise to proceed with the listing.”

CEO Baek added, “Taking this listing as an opportunity, we will contribute to the development of South Korea’s semiconductor industry and become a global leading company in system semiconductors, securing a market-leading position.”

Meanwhile, Jaram Technology is scheduled to be listed on the KOSDAQ market on March 7 after general investor subscription on the 22nd and 23rd of this month. The lead manager is Shin Young Securities.