Book-building Until the 16th
Investor Subscription on the 20th and 21st
Offering Price Range: 8,500 to 10,000 Won
Mid- to Long-term Growth Expected from the Shaheen Project
Hydrogen specialist company Deokyang Energen (Co-CEOs Kim Kicheol and Park Judong) has finalized its IPO price through a book-building process for institutional investors held from January 12 to 16, and will accept subscriptions from investors over two days on January 20 and 21.
Deokyang Energen is scheduled to be listed on the KOSDAQ market on January 30. The lead underwriters are NH Investment & Securities and Mirae Asset Securities. The total number of shares to be offered is 7.5 million, with an offering price range of 8,500 to 10,000 won per share, and the total offering amount is between 63.75 billion and 75 billion won.
On January 15, Deokyang Energen held an IPO press conference in Yeouido, Seoul, where it unveiled its growth strategy following the KOSDAQ listing.
Deokyang Energen is a domestic industrial hydrogen specialist, operating a full-cycle business from hydrogen production-linked to petrochemical processes-to storage and supply. The company provides hydrogen supply solutions centered on by-product hydrogen and reforming-based hydrogen production methods. It produces high-purity industrial hydrogen by refining by-product hydrogen to a purity of 99.99% (4N).
Deokyang Energen has secured numerous raw material suppliers and customers in key petrochemical complexes such as Yeosu and Gunsan, as well as in the Ulsan region. In addition, unlike by-product hydrogen from the NCC (Naphtha Cracking Center) process, the company has secured sources of by-product hydrogen from CA (Chlor-Alkali) processes focused on specialty products, thereby enhancing its competitiveness.
By-product hydrogen from the NCC process is subject to significant supply fluctuations depending on the petrochemical market conditions. In contrast, specialty chemical products from the CA segment, such as plastic additives, semiconductor and battery materials, and high-performance chemical materials, can secure raw materials from a variety of industries, resulting in relatively lower dependence on the petrochemical market.
Deokyang Energen emphasized that this structure allows the company to secure a stable hydrogen supply source independent of petrochemical market conditions, while also achieving both long-term price competitiveness and business stability.
As a mid- to long-term growth driver, Deokyang Energen cited the 'Shaheen' project, a large-scale petrochemical expansion initiative led by Saudi Aramco and S-Oil. The company plans to supply large quantities of hydrogen required for this project over an extended period, with equity-method earnings expected to be reflected from 2027.
Additionally, through its subsidiary Min Company, Deokyang Energen is responding to both the replacement of aging hydrogen facilities and new demand. The company also plans to improve profitability by increasing the proportion of tube trailers, which are facilities capable of transporting high-pressure hydrogen over long distances.
Deokyang Energen is preparing to move away from a gray hydrogen-centric business structure by developing clean hydrogen production based on ammonia cracking, aiming to respond to the growing demand for eco-friendly energy in sectors such as data centers and AI.
CEO Kim Kicheol stated, "Since our establishment, we have focused on laying the foundation for stable growth, but starting this year, we are planning a quantum leap through the expansion of hydrogen supply networks nationwide, including the Shaheen project."
He added, "As the policy-driven transition to a hydrogen economy accelerates, we plan to respond quickly to the market through continuous research, development, and production, and to evolve into a comprehensive eco-friendly energy company beyond the hydrogen industry."
Deokyang Energen explained that the funds raised through the KOSDAQ listing will be used for building a shipping center in Ulsan, expanding facilities, and establishing new plant equipment.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
