IPO Market Under Siege by Robots... Queueing Up for Listing

KNR System Attracts 8 Trillion Won in IPO Subscription
Angel Robotics to Conduct Demand Forecast from Next Month 6
Heizen RNM, P&S Mechanics and Others Accelerate Listing Process

Following last year, funds are flowing into the initial public offering (IPO) market again this year, with a series of robot-related companies going public. As artificial intelligence (AI) technology advances, the potential applications of robots are expected to increase significantly. Robot-related companies are eager to go public quickly to raise funds for research and development and expanding production capacity.

According to the financial investment industry on the 29th, K&RL System, a company specializing in hydraulic robot systems, recorded a subscription competition rate of 2,266.7 to 1 after receiving subscriptions from general investors over two days from the 26th to the 27th. Subscription deposits amounted to about 8 trillion won. Considering the market capitalization based on the public offering price is 146.7 billion won, the subscription enthusiasm can be gauged.

Founded in 2000, K&RL System has devoted 24 years to developing hydraulic robot technology. They have secured various core robot technologies powered by hydraulics, such as actuators and controllers. K&RL System plans to use the funds raised through the IPO to supplement production capacity and advance hydraulic robot technology. They also plan to actively enter overseas markets.

Wearable robot company Angel Robotics has also submitted a securities registration statement to list on the KOSDAQ market. They are developing wearable robots applicable in fields such as gait rehabilitation, industrial safety, and daily assistance. Their main product, 'Angellex M20,' is used for patient rehabilitation training at over 70 locations, including major general hospitals such as Sinchon Severance Hospital, Bundang Seoul National University Hospital, and Samsung Changwon Hospital.

Angel Robotics plans to raise about 24 billion won by issuing 1.6 million new shares. The funds will be used for research and development of a wearable robot standard platform and for facility investments to launch new robot products. From the 6th to the 12th of next month, they will conduct demand forecasting targeting institutional investors and finalize the public offering price.

Companies such as HiZenRNM, which produces core robot components like servo motors, drives, and modules, and P&S Mechanics, a developer of advanced medical gait rehabilitation robot systems, have submitted preliminary review applications for listing on the domestic stock market.

Choi Jong-kyung, a researcher at Heungkuk Securities, said, "Since Rainbow Robotics went public in February 2021, not only traditional industrial robots but also collaborative robots have become more accessible," adding, "We expect companies like Now Robotics, Clobot, and C-MES to also pursue listings."

The surge in robot-related companies pursuing IPOs is closely related to the government's robot industry promotion policies. Last month, the Ministry of Trade, Industry and Energy finalized the '4th Intelligent Robot Basic Plan.' The plan aims to establish a technology acquisition system to increase the localization rate of core robot components to 80% by 2030. Additionally, the government and private sector will jointly invest over 3 trillion won to foster new industries utilizing robots.

According to the Korea Institute for Industrial Economics & Trade (KIET), as of 2022, the localization rate of structural and control parts for manufacturing robots is only around 50%. The localization rates by component are 38.8% for motors, 35.8% for reducers, 42.5% for sensors, and 47.9% for controllers. Software (SW) localization is also in the 30% range. South Korea has the highest robot density in the world, measured by the number of manufacturing robots operated per 10,000 workers.

The growth potential of the robot market was also confirmed at the world's largest mobile exhibition, MWC 2024, held recently in Spain. China Mobile showcased robots that play Go with humans and organs, while UAE telecom company e& exhibited the humanoid robot 'Ameca,' which expresses facial expressions and engages in natural conversations like a human.

As the adoption rate of AI-powered robots increases, expectations are growing that they will transform daily life. An industry insider explained, "Competition to secure market dominance through technology development and production capacity expansion will intensify, and as funding demand increases, the desire to go public will also rise."