[IPO Preview] Qualitas Semiconductor Goes All In to Boost SoC Business with IPO Funds

Expected Offering Price 13,000~15,000 KRW
Samsung Electronics Foundry Collaboration Ecosystem 'SAFE™ IP' Key Partner

Qualitas Semiconductor, a company specializing in the development of high-speed interface IP (intellectual property), is preparing to list on the KOSDAQ. Most of the funds raised through the initial public offering (IPO) will be invested in research and development (R&D) to activate the system-on-chip (SoC) and module businesses.

According to the Financial Supervisory Service’s electronic disclosure system, Qualitas Semiconductor will issue 1.8 million shares to list on the KOSDAQ market. The expected offering price range is 13,000 to 15,000 KRW per share. The total planned offering amount is between 23.4 billion and 27 billion KRW. The offering price will be finalized through institutional demand forecasting from the 6th to the 13th of the month, followed by a two-day general subscription on the 18th and 19th.

Founded in 2017 by Ph.D. engineers formerly of Samsung Electronics, Qualitas Semiconductor possesses the largest workforce in Korea specializing in ultra-high-speed interface IP design. Since 2019, it has been selected as a core partner in Samsung Electronics’ foundry collaboration ecosystem, ‘SAFE™ IP.’ The company has secured mass production records of IPs across various advanced industrial fields.

Qualitas Semiconductor is a company with top-tier technological competitiveness in Korea in SERDES technology, which is the core of interfaces. SERDES is a technology that collects parallel data inside an SoC, converts it into high-speed serial data, and transmits it at ultra-high speed through a single channel. This technology is in high demand in industries with increasing data usage such as artificial intelligence (AI), autonomous driving, and data centers. Qualitas Semiconductor is expanding its global top-tier technological status through the development of 100G-class SERDES and PCIe 6.0 PHY.

The company achieved operating revenues of 1.3 billion KRW in 2020, 4 billion KRW in 2021, and 10.8 billion KRW last year. However, operating losses have continued, with losses of 1 billion KRW in 2020, 4.7 billion KRW in 2021, and 3.7 billion KRW last year. In the first half of this year, sales were 6 billion KRW with an operating loss of 3.3 billion KRW. Qualitas Semiconductor, which is listing through a technology evaluation, aims to turn profitable by 2025. Although losses are expected to continue this year and next, it forecasts operating revenues of 38.7 billion KRW and operating profits of 9.9 billion KRW in 2025.

All funds raised will be invested in R&D. Based on the minimum expected price of 13,000 KRW, Qualitas Semiconductor plans to raise 22.8 billion KRW, allocating 15.4 billion KRW for research and development from the second half of this year through 2026, and 7.4 billion KRW for asset investment. The funds will first be used to activate the SoC and module businesses through R&D. Since development personnel are the main source of generating operating cash flow, the company will also invest in expanding its workforce. Additionally, it plans to acquire and equip process, measurement, and verification equipment necessary for IP development and SoC and module development to improve quality.

Korea Investment & Securities, which is managing the listing, selected three overseas companies?Taiwan’s ASMedia Technology Inc. and ITE Tech. Inc., and the U.S.’s MaxLinear, Inc.?to determine Qualitas Semiconductor’s offering price. Applying the average price-to-earnings ratio (PER) of 26.11 from these comparable companies, the per-share value of Qualitas Semiconductor is estimated at 19,771 KRW. The valuation applied estimated net income for 2025 and 2026. This is because it is expected that from 2025 onward, the company will realize substantial operating profits due to factors such as licensing from existing IP customers, expansion of processes, and licensing of newly developed high value-added IPs, which will reduce cost ratios. Based on this, a discount rate of 24.13% to 34.25% was applied, resulting in a proposed offering price range of 13,000 to 15,000 KRW per share.