In a major development on Thursday, Doosan Robotics Inc., a leading robotic arms maker, saw its shares double following the sale of 16.2 million shares in South Korea's largest initial public offering (IPO) of the year. The company raised 421 billion won ($312 million), despite the falling shares of its parent company, Doosan Co. and certain operational challenges as highlighted by InvestingPro.
The IPO was a triumphant debut for Doosan Robotics on Seoul's bourse, with the stock trading at 50,900 won, up from an IPO price of 26,000 won. This significant increase led to a market capitalization of 3.48 trillion won. Retail investors showed considerable interest in the offering, amassing a record-breaking 33 trillion won in deposits. This surge in stock price is particularly noteworthy, given that the company's shares were in oversold territory prior to the IPO, as per an InvestingPro Tip.
Established in 2015 and known for its unmanned cafe robots, Doosan Robotics has made significant strides despite reporting an operating loss last year. The company plans to utilize the funds raised from the IPO for strategic acquisitions and overseas expansion. They currently serve prominent customers such as Hyundai Motor (OTC:HYMTF) Co. and LG Electronics Inc., and the IPO process was managed by Mirae Asset Securities Co.
However, it's worth noting that the company's revenue growth has been accelerating, a positive sign for potential investors, according to InvestingPro. Despite being a prominent player in the Machinery industry, Doosan Robotics has faced challenges with weak gross profit margins and a poor return on assets.
This event underscores South Korea's position as a global leader in robot adoption and highlights the increasing local investment in robotics. Other companies like Fadu Inc. and Rainbow Robotics are also emerging in this rapidly evolving sector. The potential for the robotics industry is vast, and Doosan Robotics, with its recent financial boost, is well-positioned to take advantage of this growth.
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