Samhyeon Retreats Near IPO Price Just 2 Months After Listing

Listed on KOSDAQ at a public offering price of 30,000 won
Price rose to 69,400 won on the first day of listing
Pre-listing hype... Neglected after listing

The stock price of Samhyun, a motion control development company, has been steadily declining since its listing on the KOSDAQ market.

According to the Korea Exchange on the 8th, Samhyun's stock price closed at 31,250 KRW the previous day, down 55% from the highest price of 69,400 KRW recorded on the first day of listing on March 21.

It closed the first day of listing down 32% from the peak price. Since then, the stock price has been on a downward trend for two months. Institutional investors recorded a net sale of 447,000 shares on the first day of listing. They continued to maintain a selling bias, resulting in a cumulative net sale of 608,000 shares after listing.

The volume taken by institutional investors who participated in the demand forecast was 1,368,000 shares. Most institutional investors who participated in the demand forecast proposed an underwriting price above 30,000 KRW. This is why the public offering price was set at 30,000 KRW, higher than the expected public offering price range of 20,000 to 25,000 KRW. Some institutional investors also promised to hold their shares for a mandatory period. The lead manager, Korea Investment & Securities, explained, "It seems to have been positively evaluated due to visible sales in the defense and robotics sectors, broad industrial scalability, and higher operating profit margins compared to competitors."

The enthusiasm for the demand forecast also influenced the public subscription for general investors. More than 12 trillion KRW of market funds poured in as subscription deposits.

Samhyun is a motion control system company that internalizes design technologies for motors, controllers, and reducers to develop smart actuators and smart power units. It has secured a total order backlog worth 1 trillion KRW in the mobility, smart defense, and robotics sectors. Last year, it recorded sales of 99.8 billion KRW and operating profit of 9.8 billion KRW. Sales are rapidly increasing based on technological capabilities in high-growth front industries.

Despite various positive factors following the listing, the stock price remains sluggish. During the previous day's trading session, it hit 31,200 KRW at one point, setting a new post-listing low. Last month, Samhyun was recognized by the Ministry of Trade, Industry and Energy as having the 'reduced heavy rare earth permanent magnet synchronous motor technology' as a core strategic technology. Samhyun's reduced heavy rare earth permanent magnet synchronous motor technology is classified as one of the 150 core strategic technologies or related items selected under Article 12 of the Special Measures Act to Strengthen the Competitiveness of the Materials, Parts, and Equipment Industry. It can be applied in various fields such as electric vehicles, industrial robots, defense, electric ships, and urban air mobility (UAM).

A Samhyun representative said, "The development of permanent magnet synchronous motor technology that reduces the use of heavy rare earths, which are highly dependent on Chinese imports, while maintaining high performance, will play an important role in strengthening national industrial competitiveness."

A domestic automobile parts company selected Samhyun as a mass production supplier of actuators for electronic limited-slip differentials applying brushless DC motors (BLDC). This recognition of Samhyun's technological capabilities is due to the application of BLDC motors, which complement the shortcomings of conventional DC motors.

A financial investment industry official said, "Most newly listed companies show similar trends in their stock prices," explaining, "They often surge above the public offering price initially after listing but fall back near the offering price within one to two months." He added, "Among public offering investors, especially institutions, only they record high returns on the first day of listing."