[At the Crossroads of Listing] Ateam① 'Padusa Incident' Reenactment?... Inflated Listing Controversy

Declared Turnaround to Profit... Large-Scale Deficit Until Q3
Stock Price Far Below IPO Price... Lowered Earnings Forecast

Hantaeksoo, CEO of A-TOM.

Atom, which went public on the KOSDAQ market last year and had pledged to turn a profit this year, has recorded a large cumulative deficit through the third quarter. Since it was listed using the technology special case method, which estimates the offering price based on future performance projections, there are concerns that if it records an annual loss, controversy over an overvalued offering price may arise.

According to the Financial Supervisory Service's electronic disclosure system on the 26th, Atom posted cumulative consolidated sales of 29 billion KRW and an operating loss of 4.3 billion KRW through the third quarter (fiscal year ending June, from July 1, 2023, to March 31, 2024). Compared to the same period last year, sales decreased by 13.9%, and the operating loss expanded by 54%.

Atom is a company that manufactures transformers used in portable electronic device chargers and TVs. Through its subsidiaries, it also operates a simple distribution business for multilayer ceramic capacitors (MLCC).

Atom was listed on the KOSDAQ market in December last year. Having recorded net losses ranging from 5.8 billion to 20.5 billion KRW annually over four years until the end of June 2023, it chose the technology special case listing method rather than a direct listing. Companies listed under the technology special case can have their offering price evaluated based on future performance estimates even if they are currently operating at a loss.

Atom's projected performance for 2023 (July 1, 2023 ? June 30, 2024) estimates sales of 53.8 billion KRW and an operating profit of 700 million KRW. It expects sales to increase by 12% year-on-year and to turn a profit. To achieve these estimates, it would need to record sales of 24.8 billion KRW and an operating profit of 5 billion KRW in the fourth quarter alone.

The reason Atom has not met its projected performance is that sales related to electric vehicles, which were presented as a vision at the time of listing, have not materialized. During the investor relations (IR) presentation at the time of listing, Atom announced plans to enter the electric vehicle and electric vehicle charger markets based on its expertise in portable charger transformers. It even provided a specific figure, expecting related sales of about 4.1 billion KRW in 2023.

However, until the third quarter of last year, Atom was not registered as a partner of any electric vehicle company, and there were no sales. This means that none of the promises made to the market six months ago and reflected in the offering price valuation have been fulfilled.

Previously, Pado also showed a similar trajectory, causing controversy in the market. Pado is a semiconductor fabless company that was listed on the KOSDAQ market last August through the technology special case. Pado presented an estimated total performance of 120.3 billion KRW last year and was listed on the KOSDAQ with a corporate value of 1.5 trillion KRW. However, actual annual sales amounted to only 22.5 billion KRW, and when it was revealed that third-quarter sales were merely 300 million KRW, its stock price plummeted.

Similarly, Atom’s stock price has not surpassed its offering price as it continues to post disappointing results different from its projections. Atom’s offering price was 18,000 KRW. Its closing price on the previous day was 13,480 KRW. In April, it even fell to 9,400 KRW.

Additionally, on the 18th, Atom issued a fair disclosure of earnings forecasts, presenting figures lower than those proposed at the time of listing. Atom’s estimated sales at listing were 78.1 billion KRW for 2024 (July 1, 2024 ? June 30, 2025) and 121 billion KRW for 2025. However, in this fair disclosure, it presented 70 billion KRW for 2024 and 120 billion KRW for 2025.

Inquiries to Atom regarding this matter went unanswered.