The Only Domestic Gas Separation Membrane Developer
IPO Price Range 16,000~18,500 KRW
Bookbuilding from 15th to 21st Next Month
Airrain, the only domestic developer of gas separation membrane solutions, is set to be listed on the KOSDAQ market. Shin Young Securities, the lead underwriter, selected three comparable companies?DS Danseok, EcoPro HN, and EcoBio Holdings?to assess Airrain's appropriate corporate value.
According to the Financial Supervisory Service's electronic disclosure system on the 25th, Airrain plans to offer a total of 1.2 million shares for its initial public offering (IPO), consisting of 1.08 million newly issued shares and 120,000 existing shares. The existing shares for sale are treasury stocks held by Airrain, so the proceeds from the offering will not flow outside the company.
Founded in March 2001, Airrain develops membrane-based gas separation membranes. Through its self-developed gas separation membranes, it can selectively separate gases such as nitrogen, methane, and carbon dioxide. Gas separation membranes using membranes have the advantage of reducing installation and maintenance costs and can be designed in various scales according to their intended use.
Although gas separation membrane technology was first commercialized in the 1970s, only seven companies worldwide have succeeded in developing the technology. The manufacturing process requires high technical expertise, creating a significant barrier to entry.
Airrain's sales last year amounted to 16.3 billion KRW, a 26.3% increase compared to the previous year. The average sales growth rate over the past three years was 65.3%. Last year, production capacity was doubled, and expansion investments are continuing this year as well.
The lead underwriter used the estimated net profit for 2027 to evaluate the rapidly growing corporate value of Airrain. This is because sales across all business divisions of Airrain are expected to expand in 2026, followed by profit stabilization in 2027. Considering government regulations and the expansion of application fields, system sales in the biogas purification and carbon dioxide capture sectors are expected to increase more than 25 times in 2027 compared to 2023.
They applied a discount rate to the estimated net profit of 15.2 billion KRW for 2027 and then multiplied it by the average price-to-earnings ratio (PER) of 28.45 times from the three comparable companies. The per-share valuation was calculated at 26,734 KRW. The proposed price range for the public offering is 16,000 to 18,500 KRW, representing a discount of up to about 40%. Demand forecasting will be conducted from the 15th to the 21st of next month, after which the offering price will be finalized.
Having submitted the securities registration statement to the Financial Services Commission, Airrain has officially begun the public offering process for listing on KOSDAQ. The total offering size is expected to be between 19.2 billion and 22.2 billion KRW, with an anticipated market capitalization of 130.8 billion to 151.2 billion KRW.
The funds raised through the listing will be used to expand the production capacity of gas separation membrane modules and to equip new business facilities. Investments in new businesses such as ionomer recovery and regeneration for hydrogen production and carbon dioxide liquefaction plant processes will accelerate growth.
Ha Sung-yong, CEO of Airrain, stated, "Through the listing, we will secure a leading position in the overseas gas separation membrane market and establish ourselves as a company leading the eco-friendly energy industry."
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