According to investment banking sources on Sept. 20, the Korea Exchange convened its listing committee on Sept. 14 and approved the Kosdaq listing reviews of Dongwon Parts and other companies. The decision came 26 business days after the company submitted its preliminary review application to the Kosdaq market division's listing department on Aug. 6. Exchange rules call for review results to be communicated within 45 business days of filing, but the outcome arrived in about half that time.
In 2019, advertising agency PlayD won approval 25 business days after filing, but listing review standards and difficulty have since risen sharply across the board. In the wake of the Fadu controversy and amid the current administration's push to attract high-quality companies, the exchange has held firm on not clearing candidates unless they meet certain thresholds for fundamentals and corporate value.
Indeed, numerous companies that secured Kosdaq listing approval this year received their results well beyond the 45-business-day mark. Before Dongwon Parts, the fastest clearance this year belonged to Lablup, an artificial intelligence software developer, which won approval in 48 business days. The exchange says it wraps up reviews swiftly for companies with no disqualifying issues, but a substantial number of applicants routinely blow past the 45-business-day guideline.
Dongwon Parts posted consolidated revenue of 92.3 billion won and operating profit of 7.6 billion won last year, with operating profit swelling roughly sevenfold from a year earlier. With global semiconductor equipment makers such as Lam Research and Applied Materials among its customers, the company is expected to sustain solid profitability after listing. It recently signed a memorandum of understanding with German industrial 3D printing firm EOS, strengthening its additive manufacturing capabilities for semiconductor components.
Samsung Securities is leading the listing as book-running manager. The brokerage was lead manager on the IPO of K bank, the only Kospi listing this year, and has taken public electric-vehicle fast-charging firm Chaevi, ultra-precision motion control company Justek, U.S. biotech Ingenia Therapeutics and drone maker Nearthlab. It is currently preparing the offering for Elice Group, a maker and distributor of modular data centers seen as this year's largest Kosdaq debut.
