Doosan Robotics Inc. (454910.KS) raised approximately 421.2bn won ($317m) with its market debut, more than doubling its initial public offering (IPO) price. This makes it the largest South Korean IPO of the year so far.
Doosan Robotics: South Korea’s largest IPO this year
The company, which harnesses robotics to produce things such as coffee and beer-pouring arms, priced its shares at 26,000 won each. At the start of trading, shares kicked off at 59,100 won each, 127% higher than the set IPO price. At one stage, the shares reached as much as 67,600 won.
Analysts attribute this positive reaction to pent-up demand for robotics stocks, as evident by the gains of smaller companies such as Rainbow Robotics, which recorded 312% gains so far this year. Doosan’s IPO trading success is a rarity, as many others struggled to stay above their debut prices a few days after listing.
According to LSEG data, South Korean companies have raised roughly $1.7bn in new proceeds in 2023. This figure pales compared to the approximate $12.7bn raised over the same period in 2022.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Last year, LG Energy Solution, a battery maker, shook up the South Korean market when it raised $10.8bn with its IPO – the largest this country has ever seen. Experts stated that investor interest in the Doosan’s listing exceeded expectations, especially since global interest hikes damaged share sales.
They believe Doosan can capitalise on labour shortages as its innovations fill some of these gaps. Analysts also predict a global robot market growth of an estimated $2.157bn by 2025.
