'Deokyang Energen to Join KOSDAQ on the 20th: "Aiming to Become a Comprehensive Eco-Friendly Energy Company Beyond Hydrogen"'

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

Kim Ki-cheol, CEO of Deokyang Energyn, is presenting growth strategies at the initial public offering (IPO) press conference held on the 15th at the CCMM Building in Yeouido, Seoul. Deokyang Energyn

Deokyang Energyn, a hydrogen-specialized company led by CEOs Kim Ki-cheol and Park Ju-dong, has finalized its offering price through a book-building process for institutional investors conducted from January 12 to 16. The company will accept subscriptions from investors over two days, on January 20 and 21.

Deokyang Energyn 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 being offered is 7.5 million, with an expected price range of 8,500 to 10,000 won per share, resulting in a total offering amount between 63.75 billion and 75 billion won.

On January 15, Deokyang Energyn held an initial public offering (IPO) press conference in Yeouido, Seoul, where the company unveiled its growth strategies following its planned KOSDAQ listing.

Deokyang Energyn is a domestic industrial hydrogen specialist, operating across the entire hydrogen value chain from production-linked to petrochemical processes-to storage and supply. The company provides hydrogen supply solutions primarily based on by-product hydrogen and reforming-based hydrogen production methods. It produces high-purity industrial hydrogen with a purity of 99.99% (4N) by advanced refining of by-product hydrogen.

Deokyang Energyn has secured numerous raw material suppliers and clients in key petrochemical complexes such as Yeosu and Gunsan, as well as in the Ulsan region. Additionally, the company explained that, unlike by-product hydrogen from naphtha cracking center (NCC) processes, it has strengthened its competitiveness by securing sources of by-product hydrogen from specialty product-focused chlor-alkali (CA) processes.

By-product hydrogen from NCC processes is subject to significant supply fluctuations depending on the petrochemical industry cycle. In contrast, specialty chemical products in the CA category-such as plastic additives, semiconductor and battery materials, and high-performance chemical materials-allow for the procurement of raw materials across various industries, resulting in relatively low dependence on the petrochemical market.

Deokyang Energyn emphasized that this structure enables the company to secure a stable hydrogen supply independent of the petrochemical market, while simultaneously achieving mid- to long-term price competitiveness and business stability.

As a mid- to long-term growth engine, Deokyang Energyn 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 gains expected to be reflected from 2027.

In addition, through its subsidiary Min Company, Deokyang Energyn is responding to both the replacement of aging hydrogen facilities and new demand. The company also aims to improve profitability by increasing the share of tube trailers, which are facilities capable of transporting high-pressure hydrogen over long distances.

Deokyang Energyn is preparing to move beyond a business structure centered on gray hydrogen by developing clean hydrogen production based on ammonia cracking, aiming to meet the growing demand for eco-friendly energy in sectors such as data centers and AI.

CEO Kim Ki-cheol stated, "While we have focused on laying the foundation for stable growth since our establishment, 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 transition to a hydrogen economy accelerates due to policy initiatives, we plan to respond quickly to the market through continuous research, development, and production, and to evolve into a comprehensive eco-friendly energy company that goes beyond the hydrogen industry."

Deokyang Energyn explained that the funds raised through the KOSDAQ listing will be used to build a shipping center in Ulsan, expand facilities, and invest in new plant equipment.