Book-building Competition Rate Reaches 1,290 to 1 for Institutional Investors
IPO Price Set at 4,700 Won, the Top of the Desired Range
The Only Design House in Korea for SK hynix System IC
Scinic Solution, the exclusive design house for SK hynix System IC, is pursuing a listing on the KOSDAQ. With investor sentiment toward the semiconductor sector rebounding in the domestic stock market recently, this is expected to affect the competition rate for the IPO subscription.
According to the financial investment industry on June 26, Scinic Solution conducted a book-building process for institutional investors from June 16 to June 20 and finalized its IPO price at the upper end of the desired range, 4,700 won (range: 4,000?4,700 won). The competition rate for the book-building was 1,289.6 to 1. Based on the IPO price, the market capitalization is approximately 111 billion won, and the total offering size is 16.5 billion won.
Scinic Solution is accepting IPO subscriptions from general investors until June 26 and will be listed on the KOSDAQ market on July 7. Daishin Securities is the lead underwriter.
Founded in 2006, Scinic Solution serves as the design house for SK hynix System IC. Last year, on a consolidated basis, the company recorded sales of 167.4 billion won and an operating profit of 5.3 billion won. Since its establishment in 2005, Scinic Solution has collaborated with more than 220 fabless clients both domestically and internationally, focusing on semiconductors essential for advanced industries such as power management ICs (PMIC), image sensors (CIS), and display driver ICs (DDI). The company continues to grow based on its design solution capabilities accumulated over 20 years and its global fabless customer base. Over the past five years, annual sales have increased by an average of 24.1%.
With the advancement of artificial intelligence (AI) technology, Scinic Solution is also expected to grow. In anticipation of rising demand for sensor semiconductors needed for on-device AI implementation, the company is developing micro-electromechanical system (MEMS) microphone sensors, MEMS ultrasonic sensors, and short-wave infrared (SWIR) sensors.
Since the beginning of this year, the semiconductor index in the domestic stock market has risen by 30.8%. Shares of SK hynix and Samsung Electronics have increased by 64.5% and 15.2%, respectively. SK hynix, which has secured leadership in the high bandwidth memory (HBM) sector, saw its stock price rise significantly more than its peers.
Park Jongseon, a researcher at Eugene Investment & Securities, stated, "Scinic Solution is the official foundry sales agency and design solution partner (DSP) for SK hynix System IC. We expect stable performance growth alongside the expansion of the system semiconductor market." He added, "The company is pursuing expansion in high value-added sensor foundry and overseas business segments. In addition to securing prototypes of MEMS ultrasonic sensors, Scinic Solution will also develop environmental sensors utilizing MEMS technology, such as those for measuring temperature, humidity, and pressure."
Scinic Solution plans to invest the funds raised through its IPO into the production of MEMS, SWIR, and ultrasonic sensors. The company will begin mass production of MEMS microphone sensors in earnest in the second half of this year. Lead-free (Pb-free) MEMS ultrasonic sensors are expected to see increased demand in the bio and healthcare sectors.
A Scinic Solution representative said, "By successfully going public, we will accelerate the mass production of high value-added sensor products, expand our 12-inch process, and further strengthen our competitiveness in the global market."
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